Your rental history plays a crucial role in determining your ability to rent a home. With landlords prioritizing low-risk tenants, rental reports have risen as a pivotal tool in the tenant selection process. But what is a rental report, and why are they gaining so much attention? Here’s a closer look at how they impact your chances of securing your next home.
Rental Reports at a Glance
A rental report is essentially a tenant’s financial and behavioral report card. This document provides a breakdown of your rental history, including past payments, lease agreements, and any disputes. Typically compiled by third-party agencies or credit bureaus, rental reports might also include credit scores, eviction records, and reviews from past landlords.
A staggering 92% of landlords use some form of tenant screening process, according to a survey by TransUnion. Rental reports are frequently integrated into this process, offering landlords a reliable overview of how responsible you’ve been as a tenant.
The Growing Trend in Landlord Screening
Rental reports are increasingly popular in today’s rental market, especially as housing demand surges. Stats suggest that tenants who fail to meet specific requirements are 60% less likely to secure a lease compared to applicants with clean rental histories.
What’s driving this trend? First, landlords want to minimize risk. Eviction processes aren’t just time-consuming—they’re costly, with Forbes reporting an average eviction cost of $3,500 per tenant. By using rental reports to weed out applicants with poor histories, property managers are investing in preventative measures to avoid these risks altogether.
Secondly, technology has made reporting easier than ever. Platforms like MyRental and RentPrep allow landlords to quickly access detailed background checks on potential tenants, further streamlining the process.
Payment History as a Game-Changer
One of the most impactful metrics in rental reports is payment history. Paying rent on time significantly increases your credibility as a tenant. Industry reports show that tenants with no late payments have tenancy approval rates 3x higher than those with multiple missed payments.
But the reverse is true as well—consistent late or missed payments damage your rental credibility. This is why it’s critical to prioritize timely payments on leases, as they may later appear in your rental report and influence your ability to find housing.
Beyond Payments – Evictions and Behavior
Evictions are the red flag of rental reports. Unsurprisingly, previous eviction records drastically reduce your chances of securing housing, with U.S. landlord associations indicating that tenants with prior evictions are 80% less likely to be approved for a lease.
However, rental reports don’t stop at eviction history or payment records. They also reflect behavioral patterns provided by past landlords. Complaints about property damage or disturbances can weigh heavily against your credibility as a tenant, even if you’ve managed to make your rent payments on time.
What the Data Means for Tenants
The focus on rental reports paints a clear picture—tenants must be proactive about their rental histories. With intense competition for housing and rising rental prices, maintaining a clean rental report is key to securing your next lease.
By understanding what impacts rental reports the most—payment history, past evictions, and landlord reviews—you can take steps to improve your standing as a tenant. After all, the data doesn’t lie; it holds the key to unlocking future rental opportunities.
