Tenant Risk Assessment

Overview

Leaseora's AI-powered Tenant Risk Assessment feature helps property owners and managers evaluate potential tenants more effectively by analyzing various data points to predict tenant reliability and identify potential risks. This guide explains how to use this tool to make more informed tenant selection decisions.

How Tenant Risk Assessment Works

Leaseora's tenant risk assessment algorithm analyzes multiple factors to provide a comprehensive evaluation of potential tenants:

• Credit History: Credit score, payment history, and debt levels
• Income Verification: Income stability, employment history, and income-to-rent ratio
• Rental History: Previous landlord references, lease compliance, and rental payment consistency
• Background Check: Criminal history, eviction records, and legal issues
• Digital Footprint: Online presence and social media analysis (with tenant consent)
• Application Consistency: Internal consistency of application information

The AI combines these factors to generate a comprehensive risk score and detailed assessment report, helping you make more informed tenant selection decisions while complying with fair housing laws.

Getting Started with Tenant Risk Assessment

Step 1: Set Up Your Screening Criteria

Before using the tenant risk assessment tool, you should establish your screening criteria:

1. Navigate to "Settings" > "Tenant Screening" in your dashboard.
2. Click on "Screening Criteria".
3. Set your minimum requirements for:
   • Credit score
   • Income-to-rent ratio
   • Employment history
   • Rental history
   • Background check parameters
4. Choose which factors should be weighted more heavily in the assessment.
5. Save your criteria.

Step 2: Invite Applicants to Complete the Screening Process

To begin the tenant screening process:

1. Navigate to "Applicants" in your dashboard.
2. Click "Add New Applicant" or select an existing applicant.
3. Click "Send Screening Invitation".
4. Customize the invitation email (optional).
5. Click "Send Invitation".

The applicant will receive an email with instructions to complete their application and authorize the screening process. They will need to provide personal information, consent to a credit and background check, and upload supporting documents.

Step 3: Review the AI Risk Assessment

Once the applicant completes the screening process, you'll receive a notification. To review the AI risk assessment:

1. Navigate to "Applicants" in your dashboard.
2. Select the applicant whose assessment you want to review.
3. Click on the "Risk Assessment" tab.

The risk assessment report includes:

• Overall Risk Score: A numerical score (1-100) indicating the applicant's overall risk level, with higher scores indicating lower risk.
• Risk Category: A classification of the applicant as Low Risk, Moderate Risk, or High Risk.
• Factor Breakdown: Individual scores for each assessment factor (credit, income, rental history, etc.).
• Red Flags: Specific issues that may require further investigation.
• Strengths: Positive factors in the applicant's profile.
• Recommendations: AI-generated suggestions for next steps.

Step 4: Make an Informed Decision

Use the risk assessment report along with your own judgment to make a tenant selection decision:

1. Review the complete assessment report.
2. Check any flagged items and consider requesting additional information if needed.
3. Compare the applicant's profile against your established criteria.
4. Document your decision-making process for compliance purposes.
5. Use the "Approve," "Deny," or "Request More Information" buttons to process the application.

Advanced Features

Comparative Analysis

When you have multiple applicants for the same property, you can use the comparative analysis feature to evaluate them side by side:

1. Navigate to "Applicants" in your dashboard.
2. Select the property with multiple applicants.
3. Click "Compare Applicants".
4. Select the applicants you want to compare.
5. Review the side-by-side comparison of risk scores and key factors.

Custom Risk Factors

You can add custom risk factors that are important for your specific properties:

1. Navigate to "Settings" > "Tenant Screening" > "Custom Risk Factors".
2. Click "Add Custom Factor".
3. Define the factor name, question type, and weight in the overall assessment.
4. Save your custom factor.

Custom factors will be included in the applicant's screening questionnaire and incorporated into the AI risk assessment.

Risk Monitoring

For approved tenants, you can enable ongoing risk monitoring to be alerted of changes in their risk profile:

1. Navigate to the tenant's profile.
2. Click on "Risk Monitoring".
3. Toggle "Enable Risk Monitoring" to on.
4. Select which factors to monitor (credit changes, legal issues, etc.).
5. Set your notification preferences.
6. Save your settings.

You'll receive alerts if significant changes are detected in the tenant's risk profile during their tenancy.

Compliance and Fair Housing

Leaseora's Tenant Risk Assessment is designed to help you make objective, consistent tenant screening decisions while complying with fair housing laws:

• Consistent Criteria: The system applies the same screening criteria to all applicants.
• Objective Factors: Assessments are based on objective, relevant factors related to an applicant's ability to fulfill lease obligations.
• Documentation: The system maintains detailed records of all screening decisions and the factors considered.
• Adverse Action Notices: Automated tools help you provide legally compliant adverse action notices when denying applications.

Frequently Asked Questions