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Tenant Screening Software: Statistics Based Model Tenant screening is about managing risk. Evictions, late pays, small claims court all waste time and reduce NOI. Tenant screening software is designed to minimize cost by managing the risk involved in letting an unknown factor (your new tenant) into your business life. Delinquencies, evictions, resident turnover, bankruptcy fraud are some of the consequences of a bad choice. The best protection for the owner is good tenant screening. There is another software model for owners to use in the tenant screening process. The goal is the same - find the right tenant quickly and fill the vacancy fast. Objective criteria is the fastest and least painful way to make a good business decision. This software model is generally used for larger property owners. Large apartment buildings or complexes or property management companies can have many applicants applying at the same time. Either approach is good, but the second approach is an attempt to make the decision process even more hands off, more scientific using the latest data mining techniques. What you say? Well, think about all the information that the credit reporting agencies like Experian have on us and you marry that to the public records that hold court records, bankruptcies, Megans Law data bases, often maintained by the Police Depts and even Terrorist lists now the law. Now thats a lot of information to gather. Now if you devise a way to ask the data to determine what profiles, using all these data bases are most likely to produce the perfect tenant profile, you get the idea behind the second computerized method to tenant screening. Thats right...use the data to predict behavior! The statistical based tenant screening software model is the most hands off approach to finding the best tenant. In part one, we looked at a model that allowed the owner/manager to set a series of criteria, much like the creditor reports we use, to choose or recommend the best tenant. This approach allows us to have a say or to emphasize certain criteria we think important. Statistical software trys to predict tenant behavior. It uses statistical scoring models based on the actual behavior of hundreds of thousands of tenant behavior. This is an attempt to quantify human behavior and to reliably predict the future behavior of a potential tenant in the future. The statistical approach maintains a data base of tenants and the factual data regarding the tenancy. It attempts to find tenant behavioral patterns by mining the data and using the common factors to predict the behavior of an applicant. Tenants that are late pays or wont pay rent seem to have patterns of behavior that are in the public records. The data base is collected on hundreds of thousands of tenants form national resident screening data bases that are compiled and data mined to come up with your answer in minutes.
The Data Sources
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