Paying multiple application fees before qualifying for housing is a significant
hardship for low income and other hard to place individuals. Low income housing
advocates have long sought a portable background screening report to lessen the
burden on this vulnerable population.
Under
the "traditional"
tenant screening model, applicants meet with prospective
landlords, complete a rental application and pay an application (screening)
fee. The landlord orders a screening report from a consumer reporting
agency (CRA). The CRA returns the background screening report to the landlord, who
then decides to accept (the applicant), accept conditionally (e.g. with an
increased deposit or cosigner) or deny tenancy. This process is hard on
low-income individuals who may spend hundreds of dollars on application fees,
paying multiple times for the same report, before finding a landlord who will
accept them. Once they do, they may lack the funds needed for fees, deposits
and other move-in costs. Additionally, the applicant has no legal right to a
copy of background check unless the landlord takes adverse action (denies
tenancy or attaches conditions - such as an additional deposit).
The
effort to address multiple screening fees and portability dates back to the
middle 90's. More recently, in November 2008, the Spokane Low-Income Housing
Consortium (SLIHC) assembled a working group of advocates and CRA's to explore
the problem and consider solutions. There were five tenant screening
services
represented.
"We
wanted to eliminate the practice of tenants having to pay for screening report
after screening report and then not having money for security deposits or first
months rent," said Cindy Algeo, SLIHC's executive director. "It was becoming a
barrier to obtaining housing."
After
numerous conversations, one company, Seattle-based
Moco Incorporated, took the
initiative to create the industry’s first direct-to-consumer (portable) tenant
screening report. Moco, Incorporated Vice President Paul Prudente said the
report, which puts prospective tenants in control of their own background
checks, is the first of its kind. "It turns the traditional tenant screening
model on its head," Prudente said. The new product is marketed under the name
MyScreeningReport.com® and is available at
www.MyScreeningReport.com.
Under
the applicant initiated tenant screening model, the applicant orders, receives,
reviews, disputes (if necessary) and, finally, shares the tenant screening report
with the
prospective landlord - in that order. Under this model, the applicant:
* Pays a single
screening fee. (payable by credit, debit or gift card)
* Disputes errors (if
any) before the report is share (by them) with the landlord.
* Reviews the content
of the screening report with prospective landlords to determine whether they qualify
under the landlord's rental criteria before paying application fees, deposits,
etc.
* Has the information
they need to better manage their affairs.
Note
that consumer initiated screening reports do not create an inquiry on the credit
report and, therefore, do not impact the applicant's credit score.
The
new product is a win for private landlords as well, many of whom lack access to
quality tenant screening services due to the cost associated with certifying
landlords under the traditional model. Landlord certification is not required
under the applicant initiated screening model. Further, this model expedites the leasing process by
giving landlords the information they need when first meeting with prospective
tenants. Tenant screening fees are collected directly from applicants - eliminating
the hassle associated with collecting and managing these funds.
For
more information or details about this consumer initiated screening
report, email
info@MyScreeningReport.com or visit
www.MyScreeningReport.com.
MyScreeningReport.com® is a service of
Moco
Incorporated.