How Much Does Tenant Screening Cost in Appfolio?

Tenant screening is a crucial part of property management. Finding the right tenant can save you headaches, money, and legal troubles down the road. Appfolio, a popular property management software, offers integrated tenant screening services. But how much does it actually cost to use these services? This article breaks down the pricing structure for tenant screening within Appfolio, helping you budget and understand the value it provides.

Understanding the costs associated with tenant screening in Appfolio is essential for making informed decisions about your property management strategy. It allows you to weigh the expense against the potential benefits of finding reliable, responsible tenants. Let's dive into the details.

Understanding Appfolio's Tenant Screening Integration

Appfolio doesn't directly conduct tenant screening themselves. Instead, they partner with screening services to provide integrated access within their platform. This means you're essentially paying for the screening services through Appfolio, streamlining the process of ordering and reviewing reports. The specific provider and the types of reports available can vary, so it's important to understand what you're getting.

Factors Influencing Tenant Screening Costs in Appfolio

Several factors influence the final cost of tenant screening through Appfolio:

  • The Screening Package: Different screening packages offer varying levels of detail. A basic package might include a credit report and criminal background check, while a more comprehensive package could add eviction history, employment verification, and even rental history verification.
  • The Screening Provider: Appfolio integrates with different screening providers, and each provider sets its own pricing. These prices can fluctuate depending on the market and the specific data they access.
  • Pass-Through Fees: Some screening reports include pass-through fees from credit bureaus or government agencies. These fees are generally unavoidable and are added to the base cost of the screening package.
  • State and Local Laws: Certain states or municipalities may have regulations that affect the cost of tenant screening. For example, some areas limit the types of information that can be included in a screening report, which may affect the price.

Typical Cost Breakdown for Appfolio Tenant Screening

While the exact pricing can change, here's a general idea of what you can expect to pay for tenant screening through Appfolio:

  • Basic Credit Report & Criminal Background Check: This is the most basic package and typically costs between $20 and $40. It provides a snapshot of the applicant's creditworthiness and criminal history.
  • Expanded Screening Package (Credit, Criminal, Eviction): This package adds eviction history to the basic report, providing a more complete picture of the applicant's rental history. Expect to pay between $30 and $50.
  • Comprehensive Screening Package (Credit, Criminal, Eviction, Employment/Rental Verification): This is the most thorough option, including verification of employment and rental history. These packages often range from $40 to $75+, depending on the complexity of the verification process.

Important Note: These are just estimates. You should always check the specific pricing within your Appfolio account for the most accurate information.

How to Find Tenant Screening Costs in Your Appfolio Account

Here's how to locate the tenant screening costs within your Appfolio account:

  1. Log into your Appfolio account.
  2. Navigate to the "Leasing" section. This section is typically where you manage your rental applications and tenant screening processes.
  3. Start a new application or access an existing one. You'll likely find the tenant screening options within the application workflow.
  4. Look for the "Tenant Screening" or "Background Check" section. This is where you'll select the screening package you want to use.
  5. Review the pricing details. Appfolio should display the cost of each screening package before you submit the request.

Tip: Take screenshots of the pricing information for your records. This can be helpful for budgeting and tracking your expenses.

Who Pays for Tenant Screening?

In most cases, the applicant pays for the tenant screening. This is a common practice that helps cover the costs associated with running the reports. However, you, as the landlord or property manager, need to be transparent about this upfront.

  • Disclose the Fee: Clearly state in your rental application and advertising materials that there is a tenant screening fee and who is responsible for paying it.
  • Use a Secure Payment Method: Appfolio typically integrates with payment processing services, allowing applicants to pay the screening fee directly through the platform.
  • Comply with Local Laws: Be aware of any local laws that regulate tenant screening fees. Some jurisdictions may limit the amount you can charge or require you to provide a copy of the screening report to the applicant.

Is Tenant Screening in Appfolio Worth the Cost?

While tenant screening does involve an expense, it's generally considered a worthwhile investment. The cost of a bad tenant – including unpaid rent, property damage, and legal fees – can far outweigh the cost of a thorough screening process.

Here are some benefits of using tenant screening through Appfolio:

  • Reduced Risk: Screening helps you identify potential red flags, such as a history of evictions or criminal activity.
  • Improved Tenant Quality: By setting clear screening criteria, you can attract more qualified applicants.
  • Legal Compliance: Using a reputable screening service helps ensure you're complying with fair housing laws and other regulations.
  • Streamlined Process: Appfolio's integration makes it easy to order and review screening reports, saving you time and effort.

Tips for Minimizing Tenant Screening Costs

While thorough screening is important, there are ways to minimize the costs:

  • Pre-Screen Applicants: Before running a full screening report, consider pre-screening applicants with a brief phone call or questionnaire. This can help you weed out unqualified applicants and avoid unnecessary screening fees.
  • Choose the Right Package: Select the screening package that best meets your needs. You may not always need the most comprehensive option.
  • Negotiate with the Provider: If you manage a large number of properties, you may be able to negotiate a discount with the screening provider.
  • Review Reports Carefully: Take the time to carefully review the screening reports. Don't automatically reject applicants based on a single negative item. Consider the context and the overall picture.

Conclusion

Tenant screening is an essential part of responsible property management, and Appfolio provides a convenient way to access these services. While the costs can vary depending on the screening package and provider, understanding the pricing structure and weighing the benefits against the expense is crucial. By taking the time to research your options and implement a thorough screening process, you can significantly reduce your risk and find reliable tenants who will treat your property with respect. Remember to always comply with local laws and be transparent with applicants about the screening process. Investing in tenant screening is an investment in the long-term success of your rental property.