The Evolving Landscape of Tenant Screening: Insights from RentRedi and BiggerPockets
NEW YORK, May 20, 2025 (GLOBE NEWSWIRE) — In an era where technology is reshaping industries, the rental market is no exception. A recent joint survey conducted by RentRedi, a leading DIY landlord software platform, and BiggerPockets, the largest online community for real estate investors, has unveiled critical insights into the tenant screening process. The findings reveal that background checks are deemed the most vital tool in a landlord’s arsenal, underscoring the importance of thorough vetting in today’s rental landscape.
The Importance of Background Checks
The BiggerPockets survey, conducted from April 4-14, 2025, gathered responses from over 2,100 members. Nearly half of the respondents identified background checks as the most crucial factor when evaluating potential tenants. This was followed by references from previous landlords, which garnered support from a third of the participants. Interestingly, only 19% considered credit scores as their top priority, while 10% relied on paystub history.
This trend highlights a shift in focus from traditional metrics like credit scores to more comprehensive evaluations that consider an applicant’s overall background and reliability.
A Multi-Layered Approach to Tenant Screening
Simultaneously, RentRedi conducted its own survey from March 30 to April 14, 2025, which included nearly 700 landlords. The results indicated that a significant majority are adopting a multi-layered approach to tenant screening. A remarkable 88% of landlords reported running certified tenant screening reports, while 78% reached out to references. Additionally, 61% reviewed applicants’ social media profiles, suggesting that landlords are increasingly aware that no single data point can provide a complete picture of a prospective tenant.
Verification processes are also rigorous, with 91% of landlords confirming employment, 90% verifying income, and 84% checking references. This thoroughness is indicative of a growing recognition that a well-rounded approach to tenant screening can mitigate risks and enhance landlord-tenant relationships.
Lifestyle Compatibility: A New Dimension in Screening
Beyond financial metrics, landlords are also considering lifestyle compatibility when screening tenants. The RentRedi survey revealed that 80% of landlords want to know about a tenant’s pet ownership, while 69% are concerned about smoking habits. Additionally, 40% consider recreational drug use important, and 29% inquire about tenants’ plans to host parties. This shift indicates that landlords are not only looking for tenants who can pay rent but also those who will respect and care for their properties.
Ryan Barone, Co-founder and CEO of RentRedi, emphasized this evolving perspective: “Landlords don’t just want tenants who can pay rent—they want tenants who will take care of their property and be a good fit for their rental.”
The Role of Technology in Tenant Screening
When it comes to prequalifying prospective tenants, technology plays a pivotal role. The survey results showed that 59% of landlords rely on property management software for screening, compared to 43% who still use manual methods like phone calls and emails. Only 12% utilize third-party property managers, and a mere 3% employ a combination of methods.
Moreover, over two-thirds of landlords use software to electronically verify tenant documents, such as paystubs and bank records. However, a quarter still request physical documentation, and 8% admitted they do not verify any tenant information. This gap highlights the ongoing need for accessible tools and education in the rental market.
A Clear Trend Towards Enhanced Screening Processes
The findings from both surveys illustrate a clear trend: landlords are increasingly leveraging technology to enhance their tenant screening processes. RentRedi’s comprehensive five-pronged tenant screening approach—evaluating background checks, credit reports, criminal records, eviction history, and financial stability—aligns with the priorities of modern landlords.
As the rental market continues to evolve, the integration of technology is becoming essential for independent landlords to mitigate risks and maximize their investments. A thorough screening process, supported by RentRedi’s software, can lead to stronger tenant relationships, lower turnover rates, and fewer unexpected challenges.
Conclusion
In conclusion, the joint surveys conducted by RentRedi and BiggerPockets reveal a significant shift in how landlords approach tenant screening. With a focus on background checks, lifestyle compatibility, and the integration of technology, landlords are better equipped to make informed decisions. As the rental landscape continues to evolve, these insights will undoubtedly shape the future of tenant screening, fostering healthier landlord-tenant relationships and enhancing the overall rental experience.
For more detailed survey results, you can find the full findings here.
About RentRedi
Founded in 2016, RentRedi is a VC-backed leader in the PropTech market, offering a comprehensive property management platform that simplifies the renting process for landlords and tenants alike. With features like rent collection, tenant screening, lease signing, and maintenance coordination, RentRedi empowers DIY landlords to grow their rental businesses efficiently. For more information, visit RentRedi.com.