Every property manager wants to fill all the units as quickly as possible. However, having the right tenants is also very important. You cannot take such decisions in a hurry; proper tenant screening is very important.
There are different aspects of this kind of screening. First, you need to check the tenant's rental history. Getting information about the financial and criminal record is also very important. This screening will help you to understand that you will get rent on time or the tenant will complete the period of lease or not. With the help of this information, you can predict which tenant will go for the renewal of the agreement once it ends.
Yes, screening can take a lot of your time, and if you are managing various properties, it will be even more difficult. To do this kind of screening, you have to visit multiple places, and it can take days. But if you want to make agreements with those people, who do not create any problem for you in the future, you have to do the proper screening. But on the other hand, it isn't easy to get information about everyone who wants to reside in your units. The solution to this problem can be Artificial intelligence tenant screening.
This is a new method for tenant screening. Different companies are doing this kind of screening for their clients, and it's quite reliable too.
What is Artificial intelligence or Al?
If you have a smart device at home, you must have heard about the terms like Artificial intelligence and machine learning. Alexa and other smart devices use this technology. The same technology is used for the screening of tenants, and that is a great help for property managers.
Al or artificial intelligence is the ability of an application to predict the results. The application used a large amount of data for this purpose. The algorithms are these applications that analyze the data based on the keywords and predict your results. Google works on the same principle as we see our search results just after typing few related words.
Machine learning is also a similar kind of thing. It is based on your previous searches. It analyses your history and predicts the results based on your previous searches. Tenant screening uses both of these advanced search techniques and provides you the required results quickly.
These apps contain the data of millions of tenants. When you search for a particular person, the algorithm scans the data and predicts the tenant's behavior in an accurate way.
Use of Artificial Intelligence for Tenant screening
In the case of traditional screening, property managers call the reference given by the prospective tenants. They also check the credit and rental history. Get information that why a tenant is moving out, and there is no criminal record against him.
On the other hand, Al screening is completely automated and based on the analysis of data. The system analyses the data and gives you the information in the form of points or scores. Based on this score, you can decide if the tenant is suitable for you or not. If a tenant didn't qualify previously, he also gets a fair chance to be accepted this time. The system understands the difference between good debt and bad debt. Debt from credit cards is bad debt, and that is not acceptable for the system. But student loans are a good debt that the system accepts and believes in giving the tenant another chance.
Advantages of Al screening
If you choose Al screening, you can enjoy several advantages. Here we are discussing a few.
This type of screening is based on data, so there are no chances of error. The system predicts accurately, and the chances of financial lose reduce to zero. You will not face problems like unpaid rent. According to a survey, property managers have saved millions of dollars by using these systems in the US.
The country's laws do not allow owners and property managers to refuse a tenant based on race, age, gender, sex, religion, color, origin, or disability. Artificial intelligence screening gives an equal chance to everyone. If he has good records, he can be your tenant without any trouble. You can make unbiased decisions with the help of this automated system.
The database offers data of the tenant from many years. If you want to do the screening on your own, you may not find the older data. But system offers a lifetime score of the tenant. You can see ups and downs in the score and decide if you want to agree or not.
Last but not the least, Al screening saves a lot of your time. Instead of running around to different places, you can get the information at the same place. It saves a lot of your energy and time. Seeing the tenant's score can make your decision quickly, and your units will not remain vacant for long. So, Al is helping in more than one way.
The scenario of property management is changing due to these latest tools and technologies. These tools are helping managers around the world. In every field, it is very important to make the quick and right decision. This technology is helping managers and tenants. Managers can quickly decide about the tenants' agreement, and tenants don't have to wait for long. Tenants also try to keep their records as fair as possible; if their score is not according to the requirements of the managers, they may not get a place to live. This indirectly affects the crime rate. When a person knows that the manager can check his records, he will avoid making those crimes that lower his score. Hence, we can have a better society around us.
Use Al for the screening of your tenants and make the right decisions in a short time. It is important for a strong portfolio, for the growth of your business and for a profit margin in your deals.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
