How much weight do you put on SmartMove check?

Question

Colleen F. · Answer

I do not take the smart move recommendation. I  use the smartmove data.  Young people with little credit history but an okay payment history will be declined in my experience with smart move.  I look at the actual payment history and what it shows.  If it is lack of history causing the decline but there is some I look at what  is there and if they paid on time.  If you see a bunch of individual payments on time but they missed a store cc or medical payment that is not an issue. If they are late on a regular payment that is an issue.  This is the most common issue I have had with smartmove recommendations.

If smartmove says accept particularly for those with established credit history I look at the debt as well as the individual payment history. If it shows a lot of debt their current income can't support I will decline even if smartmove says accept. It means life just hasn't caught up with them this doesn't happen often but it has. In addition there have had tenants where I should have considered this and didn't.

It is not if they seem like decent people, it is about what the other information you have says. What are the previous landlord checks saying?. What is their income telling you?  If it is a young person I may call a personal reference usually a neighbor or work supervisor to get more info.

I do look at the background check seriously but smartmove is not a person so the automated formula can be outweighed by whatever else you have in front of you.

Account Closed · Answer

One of my favorite quotes from I don't remember where is - "This is not an excuse contest."

The definition of a "con" man, is someone who inspires "confidence" when they shouldn't.  Just because someone "seems" like a great person, may only mean that they are really good "con" people.

From what I've read here and other places, Smartmove will give you conservative recommendations.  I've never read or heard of Smartmove recommending you accept someone who turned out to be a bad risk.

So, since you are obviously not experienced in screening tenants, and able to ignore how great someone seems - regardless of the data - then just trust the screening service you are paying for.

One of my favorite sayings is, "Don't try to fit a square tenant into your round hole of criteria."  As soon as you realize you are spending time trying to justify renting to someone who does not meet your criteria - stop.  Just stop.  And deny.

Approving a good tenant is never work.  Repeat after me.  Approving a good tenant is never work.

A good tenant will never have you wondering if that particular judgment is okay because it's a medical bill, or because they are young and have no history, or because their bankruptcy is only so many years old, or because.............anything.

Because a good tenant won't have any of the above.

So, unless you absolutely can't find a tenant with none of the above, and can't wait to find one - then don't.

This is not rocket science.

Did I learn the above the hard way?  Yes!  So I hope you listen to me as the voice of experience.

Penny Clark · Answer

@Joshua D., You can use smartmove as an initial screening process, but if it is based solely on credit history, you will be excluding certain groups like young people and the elderly, who may make excellent tenants but do not have much of a credit history. When you screen for credit, however, I would want to look at their debt to income ratio (Will they be able to pay your rent after taxes are taken out and they pay their other bills?). If the young person does not have much of a credit history, I'd ask to see 12 months of cell phone or internet bills to get an idea of their payment history.

When credit is sketchy or nonexistent, income and rental history become much more important. Don't be shy about asking for payment stubs, income tax records, 12 months of bank statements or award letters showing benefits if they receive social security, SSI or educational grants. Have applicant sign permission so you can get written verification from employer and previous landlords. You will want to ask the prior landlords if the applicant ever paid late or if they ever issued 3 day notices and for what reason.

Personal references should not be people related to the applicant either. Ask that they list a work or volunteer related reference instead. Screening tenants involves a certain amount of "legwork" that either you do or you hire someone to do. Eighty-ninety percent of your ability to collect rent is dependent on how well you screen your tenants. IMHO a robotic online service falls short of that.

Good luck!

Mags S. · Answer

I'd be interested in hearing some feedback too.

Joshua D. · Answer

@Maxwell Anyimah-mensah so true, love that quote. Makes total sense!

Maxwell Anyimah-mensah · Answer

I just started using Smart Move at the beginning of this year, 2016.  In this business where a bad tenant can cause you a whole lot of headache,money and time. I personally do not make other considerations for a potential tenant. I use smart move as a first step in the approval process, it is a great way to save time and move on to the next stage of processing the application of actual qualified tenants.

The best advice I have received in the "buy and hold" world is "Do not make somebody else problem your problem unless you are the solution to the problem".

Disclaimer, My properties are in the very tenant friendly state of Washington, So a bad tenant can ruin your love for real estate.

Best of luck.

How much weight do you put on SmartMove check?

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