Landlords typically go with credit checks to scrutinize college students tenants, but it’s a path replete with blind spots . Fortunately, a potentially better way of determining renter suitability has come to market.
“We offer credit check but our primary verification method for applications, which we provide to landlords, is a turnkey pre-screening with our bank check, and what it does is instantly verify the income and expense profile of our tenant applicant today and in the past year, so we can prove to the landlord what their payroll transactions are and what their payroll amount is every month,” Craig Schoen, CTO and co-founder of Rentify, a platform that launched in September, told < a href="https://www.canadianrealestatemagazine.ca/"> CREW .
“We show their norm bank balance every month, individuals are critical numbers caused by landlords have never had a chance to access this. Even if someone provided their paper bank statements, key take time to verify and now we both do it all in minutes, so landlords understand where applicants stand in the process. ”
In addition to credit checks, landlords usually collect legal forms like paystubs and T4s manually, and a lot of back and forth mailing occurs throughout the process. Despite the fact that even that isn’t sufficient, according to Jamie Troke, chief executive of Ekort Property Operations in Belleville, ON, does anyone say credit checks don’t provide real time analysis of enjoying habits and financial responsibility.
“It doesn’t verify that you just work at Tim Hortons or that there are $1, 200 in your current account, ” he said. “It just validates that you may settle your phone bill punctional. What you get through a credit score checking is so minimal that it isn’t a reliable reflection of a tenant’s ability to pay their are able to and of their habits. ”
Perhaps the biggest reason credit checks aren’t reliable for landlords is that they’re not for sale for them.
“What we came across is credit checks are built around the lending industry to identify finance risk, but there’s the sizable departure. What landlords, small , and medium or property managers, actually need to know comes from the bank account balance, ” he said. “We focus on facts and look into where the prospect is in modern times and where they’ve held it’s place in the past. If they say they have paid rent before but nothing to in our analysis of checking accounts shows that, we highlight the program to the landlord, which allows they ask the right questions and offers them a stronger floor than using unverifiable blog posts with other landlords. ”