Get Smart: Trust Your Judgment – Being A Landlord Today

Updated July 2026

Let me put it this way so there is no misunderstanding: if you suspect your tenants are criminals among the FBI’s “most wanted,” hire one of those services to check them out. Otherwise, forget it.

Oops. I don’t really mean “forget it,” because you can’t ignore the question entirely: should you hire an outside service provider to check out your potential tenants?

This came up when a provider called SmartMove offered me the chance to “make smarter leasing decisions.”

It’s natural to worry about rent. The average renter in 2013 paid approximately $958 per month, and over 2.3 million eviction filings were recorded that year, more than double the number from 2007.

That statistic comes from Eviction Lab’s 2013 data, which tracks legal filings across all 50 states. It shows that nearly 1 in 10 renters faced eviction proceedings in a single year.

So yes, you want assurance. But is it really worth paying $20 or more to learn that a candidate has a FICO Score under 620? Or that they had a misdemeanor conviction in 2010?

Most screening platforms claim to offer instant results using data from TransUnion, Experian, and Equifax. These are the same bureaus that banks and credit card issuers rely on.

Do Tenant Screening Services Actually Reduce Eviction Risk?

Yes, but only if you define “reduce” as “limit to people with poor credit history.”

A study by the Consumer Financial Protection Bureau (CFPB) found that renters with FICO Scores below 620 were nearly three times more likely to be evicted than those with scores above 700.

But here’s the catch: a low score doesn’t mean a bad tenant. It just means a history of missed payments, high debt-to-income (DTI) ratios, or past bankruptcies.

And even then, screening doesn’t eliminate risk. In 2013, 2,378,464 eviction filings occurred nationwide, according to Eviction Lab. That doesn’t mean all were bad tenants. Some lost jobs. Others faced medical emergencies.

Put that eviction figure next to your own numbers for a second. If you own four rental units and each unit turns over once every two years, you’re placing roughly two new tenants annually. Against a national pool of 2,378,464 filings in a single year, even a landlord with a spotless screening process is operating in a market where filings are common enough that no report guarantees you avoid one. Screening shifts the odds; it doesn’t remove them.

So what’s the real purpose of a screening service? To save time? To reduce paperwork?

SmartMove claims its services can cut approval time from days to minutes. But does that really help?

Consider this: in California, landlords must follow strict rules under the Department of Fair Employment and Housing (DFEH). In Tennessee, you can’t refuse a tenant based on a criminal record unless it’s directly related to the property.

That’s why relying solely on a third-party report can backfire. A person with a past drug conviction in 2005 might still be a reliable renter today.

What You Can Check Yourself (Without Paying $20)

You don’t need a service to check a person’s credit. You can get a free credit report from AnnualCreditReport.com once per year.

And you can manually verify employment. Ask for a pay stub. Call the employer. Most companies will confirm employment status without discussing salary.

Say an applicant has a 640 credit score and pay stubs showing $2,900 a month in take-home income, applying for a unit that rents at $958 a month (the 2013 national average). That’s a rent-to-income ratio of about 33%, roughly in line with what most landlords consider workable. A 640 score alone might make you hesitate, but paired with consistent deposits and a rent-to-income ratio under a third, the fuller picture matters more than the number on its own.

Some landlords use Chase or Bank of America to check bank statements. But be careful: you can’t access someone else’s account without consent.

Still, you can ask for recent bank statements showing consistent deposits. A pattern of rent payments or salary deposits is more telling than a single FICO Score.

And remember, the Federal Deposit Insurance Corporation (FDIC) protects deposits up to $250,000, so even if a tenant skips a payment, your security deposit is safe.

Security Deposits: A Real Safety Net?

Yes, but only if you collect it upfront and hold it legally.

In Florida, landlords must place security deposits in interest-bearing accounts and provide annual statements. In Georgia, the state allows up to two months’ rent as a deposit, but only if the lease is for more than one year.

And in New York City, rent stabilization laws require landlords to return deposits within 14 days after the lease ends, with interest.

But here’s the truth: no deposit is a guarantee. Some tenants still skip rent. Others leave without notice. That’s why relying solely on a screening service is a false sense of security.

When You Should Skip the Service

You should skip it when:

• The applicant has a FICO Score above 680 and a consistent employment history.
• You’re renting a single-family home in a stable neighborhood.
• You’re willing to collect at least one month’s rent as a security deposit.

And you should skip it when the cost exceeds your risk tolerance. A $20 report won’t protect you if a tenant runs away with your furniture.

But here’s the trade-off: you lose time. You also lose the ability to compare applicants objectively.

If you’re renting out one unit a year, the math against a paid service is fairly simple: skip the $25-$45 fee, spend an hour calling the employer and pulling a free annual credit report, and put the savings toward the security deposit reserve instead. But if you manage several units and turn over tenants often, that saved hour multiplied across a dozen applicants a year adds up to real time you probably don’t have. That’s the honest limitation here: the “trust your judgment” approach works best for landlords with one or two properties and the time to vet manually. It works less well for anyone scaling past a handful of units, where a paid screening service’s speed and consistency start to earn back their cost.

So if you’re managing multiple units, using a system like Zillow or Apartments.com with built-in screening tools may be worth the cost.

Frequently Asked Questions

Is it legal to use a tenant screening service in all 50 states?

Yes, but with caveats. State laws vary on what information can be used. For example, HUD prohibits discrimination based on race, religion, or disability. Screening must be consistent across all applicants.

Can a landlord reject a tenant based solely on a criminal record?

No. The CFPB and Equal Employment Opportunity Commission (EEOC) warn against blanket exclusions. A conviction from 2008 is less relevant than one from 2012.

How long does a criminal record stay on a report?

Most states limit public criminal records to 7 years. Some states, like California, allow up to 10 years for certain offenses. FBI background checks can go further, but they’re rarely used for rental screening.

Do tenant screening services check for fraud or identity theft?

Some do. Services like Checkr verify government-issued IDs and cross-reference them with databases. But they don’t confirm if someone is using a stolen identity.

Can I get a free credit report instead of paying $20?

Yes. You’re entitled to one free report per year from AnnualCreditReport.com. But it won’t include a credit score. For that, you’ll need Experian or TransUnion.

What’s the average cost of a tenant screening in 2013?

Most services charged between $20 and $65. SmartMove ran around $25–$45. The lowest-cost option was often the least detailed.

Do landlords in New York City need to use a screening service?

No. But they must follow rent stabilization laws, which restrict how they can screen tenants. You cannot deny someone based on a minor criminal record unless it’s directly related to the property.

Can a landlord charge more than one month’s rent as a security deposit?

It depends on the state. In California, it’s two months’ rent. In Texas, it’s one month. In Florida, it’s one month, but interest must be paid. In Wisconsin, the limit is two months for leases over a year.

How do FICO Scores affect tenant screening?

FICO Scores below 620 are considered poor. Scores above 700 are strong. But they don’t reflect job stability or character. A score of 680 doesn’t mean you’ll get paid.

Are there any free tenant screening tools?

Yes. AnnualCreditReport.com offers free credit reports. EFF also provides tools to detect doxxing or online threats. But no free tool offers instant criminal checks.