Have a rental house? Does it remain vacant because you can’t find better tenants?
If you can get tenant screening done properly things will get smoother. But how will you do that?
Tenant screening is important for property management. To avoid losing the money you need to fill your vacant properties fully.
But filling it with bad tenants can make it troublesome for you. So, finding the right tenant is of utmost priority for the property manager.
To do so, tenant screening is best the way to ensure that your rental property is filled with the right renters.
To check the criminal, rental, and financial history of the tenant, property management companies find screening as the only method. So that, you can get a renter who will
- pay the rent on time.
- not break the lease unnecessarily, and
- could stay in a property for a long term.
Screening is a time-consuming job. Managing multiple rental properties can be very tiring taking up a large part of your time.
How to go about getting an accurate assessment of the prospective renter that will be applicable for all the units without causing a distraction to the rental procedure.
With innovative ideas, AI is slowly making its way to property management. As AI tenant screening it is getting accepted universally. It is making taxing tenant screening easier and more streamlined.
This is a new venture that people are coming to accept to make the hectic job of finding the right tenant simpler.
The purpose of Machine Learning and Artificial Intelligence or AI?
The terms Machine Learning and Artificial Intelligence has been making rounds for a long time.
Do you know about it?
Do you know Alexa?
This would strike the right chord. Smart home devices such as Alexa are a part of AI. The technology that makes Alexa respond to the instructions is now being used by the property managers to screen tenants.
Sounds strange, doesn’t it? How can smart devices be used for screening?
This latest technology is an ability of the application to predict the outcome after searching the big data. Just what Google does.
Using the same keyword, the algorithm that powers the search engine gives you options to choose from. It is the predicting capacity of the machine that becomes useful.
Google and other apps use machine learning as the base to deliver the right result to the users. The result gets refined based on previous searches and results, making it easier for the person to get answers.
This is what AI does while screening tenants. It refines your searches and predicts accurate results. The AI algorithm for tenant screening analyses the records in the database that holds all the details of more than 30 million leases.
AI is utilized for tenant screening effectively
Whenever we read or listen to new technology, we start drawing comparisons. That is human nature.
Traditional tenant screening has a simple yet taxing procedure. Before picking a prospective renter, the information provided by them is checked thoroughly.
The credit score is checked with the criminal background, rental history and to double-check you would call the references again.
The AI screening focuses on analyzing the information from different prospective tenants to come up with a score just like the credit score. This result is used by the property management companies to determine the good tenants from the average ones.
What does AI do differently?
It gives a great chunk of the population a chance to qualify, which was not possible with the traditional methods.
The algorithm for tenant screening analyses all debt-to-income individually. Instead of judging all the debts on the same platform, it separates low-interest good debt from bad debts.
That means car payments and student loans are brought under good debts whereas the credit card debt is taken negatively.
Benefits of AI tenant screening tools
Coming to know so much about the AI algorithm now lets’ check out some of the benefits of AI tenant screening. Why is it being accepted by different property management companies unanimously?
It’s because of the robust approach from a financial perspective that has made AI come with a punch. With the AI technique, the risk for financial loss from eviction processes and unpaid rent has been reduced. It would have been big numbers if you think about it.
The financial benefit is just one aspect. This new technology brings fairness to both, the landowners and tenants.
Now property managers or tenants won’t be able to reject a prospect based on race, sex, disability, color, religion, national origin, familial status, gender, or age.
It is a sad truth but no matter how hard you try, you can’t leave bias behind while traditionally going through the applications of all the tenants. With an automated facility, this factor gets reduced significantly.
Transferable data or score results
Another advantage of having AI tenant screening is transferable data or score results. This is a sigh of relief for most tenants. They won’t have to produce data again and again, every time they move from one place to another.
It comes with various other benefits such as the ability to track the lifetime score of the residents living it the property. The score gets transferred from year to year as the score changes with every move.
The changes can be tracked and assessed by the landowner or the property manager. This makes things easier for the tenant as well as the property owner.
Over to you
Just like the usage of AI in other fields, property management is also adapting the latest trends to up the game. Things are getting simpler and both property owners and renters are benefiting from them.
Slowly many property management companies have brought AI to their house, wishing to upgrade their skills. This has made the job of property managers trouble-free, allowing them to focus on building business strongly. The introduction of AI has opened the market for a larger tenant pool.
What is your intake on the whole AI tenant screening technology? Will it be beneficial for you as a tenant or landowner?