Finding the right tenant is the most critical step in successful property management. A reliable resident ensures steady rental income, maintains the property, and reduces the likelihood of costly legal disputes or evictions. To achieve this, many landlords and property managers turn to specialized screening services. One of the most established names in this industry is the National Tenant Network, commonly known as NTN.
National Tenant Network provides comprehensive data and analytical tools designed to help property owners make informed decisions. By looking beyond a simple credit score, these services offer a holistic view of a candidate’s history. This guide will walk you through how to use these screening services effectively to protect your investment and build a stable community of residents.
Understanding National Tenant Network Services
National Tenant Network has been a staple in the real estate industry since 1980. Unlike generic background check websites, it focuses specifically on the needs of housing providers. It operates through a network of local offices, which allows for a blend of national data and local expertise.
The primary goal of using a dedicated screening service is to minimize risk. By accessing specialized databases that track tenant behavior, landlords can identify patterns that might not appear on a standard credit report. This includes previous evictions, lease violations, and specific rental history data contributed by other property owners.
The Core Screening Products
When you use a professional screening service, you typically have access to several different types of reports. Understanding what each one offers is essential for thorough vetting.
- NTN DecisionPoint: This is a proprietary scoring system that analyzes a tenant’s credit, public records, and eviction history to provide a simple “accept” or “decline” recommendation based on your specific criteria.
- Comprehensive Credit Reports: These provide a detailed look at a person’s financial responsibility, including their debt-to-income ratio and payment history.
- Eviction History: This is perhaps the most important report. It searches national databases for any past filings or judgments against the applicant.
- Criminal Background Checks: This service searches local, state, and federal records to identify any relevant criminal history that might impact the safety of your property.
- Multi-State Sex Offender Search: A critical safety check that ensures your community remains secure.
How to Get Started with Resident Screening
To begin using professional screening services, you first need to establish an account as a housing provider. Because these reports contain sensitive financial and personal information, there is a verification process involved to ensure you have a legitimate business need for the data.
The first step is usually contacting a local office. Because the network is decentralized, your local representative can help you understand state-specific laws and regulations that might affect your screening process. Once your account is verified, you can begin submitting applications for review.
The Application Process
Before you can run a background check, you must obtain written consent from the prospective tenant. This is a legal requirement under the Fair Credit Reporting Act (FCRA). Most landlords include a disclosure and authorization form as part of their standard rental application.
Once you have the signed authorization, you enter the applicant’s details into the screening portal. This usually includes their full name, social security number, date of birth, and current address. The system then compiles data from various sources to generate your requested reports.
Interpreting the Results
Receiving a background report is only half the battle; you also need to know how to interpret the data. A common mistake is focusing solely on a credit score. While financial stability is important, it doesn’t tell the whole story of how someone behaves as a tenant.
For example, someone might have a lower credit score due to student loans or medical debt but have a flawless ten-year history of paying rent on time. Conversely, someone with a high credit score might have a history of noise complaints or property damage that wouldn’t show up in a financial report but would be noted in a tenant performance database.
Using the DecisionPoint Score
The DecisionPoint tool simplifies this by weighing various factors according to your risk tolerance. You can set your own thresholds for what constitutes an acceptable risk. If the report returns a “conditional” result, you might decide to accept the tenant with an increased security deposit or a co-signer.
Legal Compliance and Fair Housing
When using any screening service, you must remain compliant with federal and state laws. The Fair Credit Reporting Act (FCRA) governs how you handle the information found in background checks. If you deny an applicant based on information in their report, you are legally required to send them an “Adverse Action” notice.
This notice informs the applicant why they were denied and provides them with the contact information for the agency that provided the report. This allows the applicant to dispute any inaccuracies in their file. Furthermore, you must always adhere to Fair Housing laws, ensuring that your screening criteria are applied consistently to every applicant to avoid discrimination.
Consistency is Key
To protect yourself from legal liability, establish a written set of screening criteria before you even list your property. This document should outline the minimum credit score, income requirements, and clean background history you expect. By following the same steps for every applicant, you demonstrate a fair and professional process.
The Benefits of Professional Screening
While there is a cost associated with professional background checks, the return on investment is significant. The cost of a single eviction can reach thousands of dollars when you factor in legal fees, lost rent, and property repairs. A thorough screening process acts as an insurance policy against these expenses.
Moreover, using a recognized service like the National Tenant Network can actually attract better tenants. High-quality applicants expect a professional screening process and are often comforted by the fact that the landlord takes the safety and stability of the building seriously. It sets a professional tone for the entire landlord-tenant relationship.
Conclusion
Accessing reliable resident screening and background checks is the most effective way to manage a rental property successfully. By leveraging the tools provided by the National Tenant Network, you can look beyond the surface of an application and understand the true history of a prospective tenant. This leads to lower turnover, fewer legal headaches, and a more profitable investment.
Remember to always prioritize legal compliance and maintain a consistent screening policy for all applicants. If you found this guide helpful, consider exploring our other articles on property management best practices, understanding lease agreements, and maintaining your rental property to ensure long-term success.