Tenant screening is the process of estimating potential renters for available apartment units. In general, the purpose of tenant screening is not to determine the eligibility of a tenant for a certain program, but to determine if the person is likely to be a good tenant. Widespread use of tenant screening services by property managers is a relatively recent practice. Tenant screening agencies or private agencies that sell information about prospective tenants to property managers first began operating in the U.S. in the 1970s. There are many housing authorities and owners of multifamily subsidized housing that have written policies which include procedures related to tenant screening.
Nowadays, many landlord and property managers perform a credit check on applicants looking for accommodation. Furthermore, the property managers are highly reliable on public records, rental references and employment verification for verifying the tenant’s identity. Today, tenant screening is a common practice and companies offering such services can be found across the world. The practice of screening potential tenants is designed to help rental property owners lessen the risks and liabilities associated with prospective clients.
Key driver of the global tenant screening services market is the rapidly growing rental housing market. Due to the Great Recession, rate of unemployment has been high and income has declined, constraining household budgets and making people shift toward living in rental houses. Young adults are the potential age group to rent a house due to changes in studies, jobs, etc. Renting has significantly flourished in regions, especially in central cities, where land prices are high and low-income households are concentrated. Apart from this, technological progress has also been a key driver of the global tenant screening services market. Tenant screening service companies are now able to collect information from public record databases and the major credit reporting agencies, store it in their own databases, and then distribute it to their clients quickly via fax or the Internet. In addition to local tenant screening companies, there is a growing trend toward large, national screening agencies that offer online services. Such agencies work exclusively through the Internet, are owned by large corporations, and usually do not have a local presence. Increase in local renting licensing is also boosting the growth of the tenant screening services market. However, a key restraint of the tenant screening services market is security concern faced during verification of the tenant. Small and medium sized agencies can find huge opportunities for offering tenant screening services across central cities.
The global tenant screening services market can be segmented on the basis of type, services, agency type, and region. Based on type, the tenant screening services market can be divided into online and offline. By services, the tenant screening services market can be categorized into instant credit check, tenant suitability check, full referencing, full income verification, landlord referencing, and right-to-rent checks. Based on agency type, the tenant screening services market can be classified into large agencies and small and medium agencies. In terms of region, the global tenant screening services market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America. North America and Asia Pacific are likely to account for prominent market shares due to the presence of developed countries, such as, the U.S., China, India, Canada, and Japan in these regions. Europe is an emerging market for tenant screening services due to the penetration of technological solutions and high growth of population in the region.
Key vendors operating in the global tenant screening services market are Apartment Services Plus/ASP Screening, Landlord Protection Agency, Multi-Housing Credit Control, Rental History Reports, Inc., Rental Research Services, Inc., Renters Acceptance, Tenant Check, etc.
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