Upcoming Trends in Resident Screening Software

This year has served challenges in many respects, especially within the business landscape. Property managers are experiencing complications due to layoffs and the economic impacts of the pandemic. Shelter-in-place orders make apartment showings, paying rent in person, and other operational requirements are even more difficult.

Thankfully, because of new technology, the rental market has been enabled with innovative ways of conducting business for the digital age. Being able to implement new technology into your workflow is not just an option for tech-savvy property management groups; it is now a requirement to remain competitive.

Applicants and Residents expect digital resident screening

Residents appreciate the benefits that property management software provides, including faster customer service capabilities, automated rent reminders, and the option to provide feedback conveniently.

Applicants expect a modernized application and ongoing property management experience. From the initial application to payment portals and maintenance, residents demand a primarily digital experience.

Property managers appreciate that software provides business advantages that can positively affect the bottom line. The ability to tactically verify residents quickly is beneficial to both property managers and applicants.

Digital resident screening opens chances for more fraud

As technology becomes more sophisticated, so do the users of specific technologies.

In Snappt's recent study, Confronting the Costs of Rental Fraud, we found that (66%) of property managers reported that they had been the victim of fraudulent rental applications. Property managers also noted that 10% of fraudulent applications are going undetected during the tenant screening process.

Application fraud is rampant in the credit card industry, but it is also becoming more prevalent in the rental industry. The deceptions vary:

·      Some applicants inflate income

·      Others edit employment time

·      People may hide it or disguise sources to cover illegal/criminal activity

With the availability of imaging software in addition to affordable advanced personal scanning devices, it is easy to edit a document and pass it off as real.

Resident screening software impacts future rental property portfolio ROI

Using digital rental applications improves efficiency and can shorten the time between vacancies — a major factor in maximizing your ROI. Additionally, most renters find and apply for rental properties online and may move along if it's not available.

Main features of digital resident screening software include:

·       Customizable applications, credit scores, and background checks

·       View income, rental history, employment status and references from the past

·       Customizable acceptance based on your risk allowances that can also decrease the risk of human error and possible discrimination

·       Performance dashboards provide great detail into the overall validity and strength of portfolios and provide forecasting data to plan for the changing markets.

Your resident screening software is only as good as the data that goes into it.