Approved, Conditional and Do Individual Assessment
I got the results back on my applicant...what does the recommendation mean? What is an Individual Assessment?
Each application will be given a recommendation based on the landlords rental criteria. The landlord should make the final decision after considering the application as a whole and doing any necessary individual assessment.
Recommendation “Approved”
Approved means the applicant passed your criteria for credit scores and criminal and eviction records. Now, not so fast; you still have some work to do on your part. Did you remember to verify rental history, employment and income? Get copies of proof of income such as paycheck stubs. Look at dates and totals and make sure everything adds up. Do they meet your vehicle and pet policy for the property? Did you get a chance to check their ID and match faces? Can they afford your deposits and payment? Remember, this is your investment. Take the time to make sure all your bases are covered before you sign a lease and hand over the keys.
Recommendation “Conditional”
Conditional indicates the credit score is being flagged for falling below average. There are possible red flags the applicant may have trouble making their rent payments.
Is their credit a “NO SCORE?” (Credit code “4”or “N/S”)
If so, what’s the situation? Use caution and ask yourself these questions:
Have they established any credit or are their accounts inactive? Or is their credit so poor they were not issued a score? A long list of collections and poor payment status can get so bad the score drops off all together. Know the difference and protect your investment. There is a BIG difference between a younger applicant in school without credit verus an applicant that has been in jail for five years or because they seem “off the grid.” Lastly, did you check their ID and match faces?
Is their credit in a lower range? (525-599)
If so, take a closer look at credit report details. Read the credit factors at the top that lowered the score. Do they have available credit? Do they have any positive history at all? What types of accounts are late? Things like utility collections are a big red flag.
Once you have determined what is going on with their credit score don’t forget rental history, employment and income verification. These areas will have a big affect on the likelihood the applicant can pay rent on time. Depending on the situation you may want to consider extra deposit or a cosigner. If you require any of these additional considerations for approval make sure to send the Adverse Action letter provided in your account for each applicant.
Recommendation “Do Individual Assessment”
This recommendation means the applicant failed one or more areas of your rental criteria in the system for credit scores, criminal and/or eviction records. Take a look at the final criminal report for more details. An individual assessment allows you to look further into the situation and determine the risk of harm to person or property or risk of nonpayment. Individual Assessments consider factors like age, disability, and proof of an improved situation or rehabilitation. The proof should demonstrate they are no longer at risk of harm to person or property or defaulting on their payment. If you decline an applicant make sure to send them the Adverse Action letter provided in your account for each applicant.
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