What do you use for tenant screening

[BrannDon Albert]

Getting ready to list my first rental. Looking for suggestions for a tenant screening and application website or service. I also just recently heard about property management companies that handle just the tenant transition then hand management back to the owner. If you know of someone good for that in Colorado I would appreciate that too. Thanks in advance!

[Ricardo R.]

Hi BrannDon, I personally like to be involved in the screening process and application, since that is the only defense and chance you really have to seek a good tenant and avoid problems in the future. I don't mind property management companies but 1) you'll be loosing profit for something that you can do 10 times better (most charge 1/2 month rent for screening or 1 full month for letting and listing) and 2) if you are just paying them for screening and letting, then there really is no vested interest in them being selective and finding you the best tenant possible. 

I personally go back and forth between two services depending on the tenant. I use 'MySmartMove' and 'Cozy'. With 'MySmartMove' you have the ability to either have the tenant pay for their background check or you can pay on their behalf if you collect upfront application costs. With Cozy, the tenant has to pay for their background check but in my opinion it is a bit more comprehensive. Additionally with Cozy, applicants are able to fill out their application online (which is free) and then you prompt them to go through with the background check. Both services, check credit histories, evictions, criminal background, SSN verification etc. 

Whatever the case, I still highly recommend that you do some 'leg work' in verifying their employer, salary, position, and length of employment. Also, you need verify their current and PREVIOUS landlords as well (previous landlord is very important). They will state their income on the application, you have to verify this - yes a call to employer will help - but you should request 2 months of pay stubs or W2 for the past year. By now you have checked everything; employment, previous landlords, credit history, utilities, etc.... but how do you know they were who they told you they were when you met them? Could it be possible for someone to tell you they were 'John' when in fact they were 'Mike'? Their friend John could have passed the entire background process for them....my point... don't forget to verify their driver's license with their picture and name on it.  

I know this is long but one last thing... neither 'MySmartMove' nor 'Cozy' or any other screening service that I am aware of have a dedicated 'Information release and consent' form. With the exception of a few, every background check I have conduced I have had to use one to acquire needed info... apartment complexes, utility companies and major employers typically always require one and will not release information on your applicant until you have a dedicated form signed by the applicant.  

Hope this helps. 

Alex