Global Tenant Screening Services Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Tenant Screening Services Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Tenant screening is the process of estimating potential renters for available apartment units. In general, the purpose of tenant screening is not to determine the eligibility of a tenant for a certain program, but to determine if the person is likely to be a good tenant. Tenant screening services are consumer reporting agencies (CRAs) that provide background data on tenant applicants. The data can include bankruptcies, judgments, liens, credit reports, sex offender status, criminal history, eviction history and employment verifications. The report they provide helps to give a landlord a clearer picture of their tenant applicant before deciding whom to choose for their rentals.

Market Overview:

The latest research study on the global Tenant Screening Services market finds that the global Tenant Screening Services market reached a value of USD 1603.0 million in 2022. It’s expected that the market will achieve USD 2144.51 million by 2028, exhibiting a CAGR of 4.97% during the forecast period.

The impact of the epidemic on the Tenant Screening Services industry will involve all major links and all entities in the industry chain. In order to avoid large-scale population movements and gatherings, various countries have adopted prevention and control measures such as home isolation and extension of the Spring Festival holiday. More and more cities are entering the first-level response state, strictly isolating measures, strictly prohibiting vehicle entry and exit, strictly controlling the flow of personnel, and strictly preventing the spread of the epidemic. This makes it impossible for non-local employees to return or arrive immediately, the number of employees is insufficient, and normal commuting is also severely frustrated.

This has led to a sharp decline in population mobility and a relatively reduced demand for renting. The business of taking care and new signings has been suspended, and no new customers have moved in. The room vacancy rate is rising, and regular customers are also losing. Due to the sudden drop in tenant flow, future income expectations will be greatly affected. Small and medium-sized companies have always been tight in cash flow. If the epidemic continues to develop, their cash flow may be paralyzed.

There are two main reasons for the short-term suppression of rental demand. First, closing offices and residents' homes to prevent epidemics has made it impossible to conduct on-site inspections and make it difficult for residents to make decisions about renting out houses. Second, rental expectations are greatly affected. Expectations for economic growth and income levels have decreased; disaster prevention expectations have increased, and the willingness to rent housing and other expenditures in the short term has decreased. Due to the impact of the epidemic on the economy, many industries are facing shrinking demand and declining corporate profits, resulting in rising unemployment, falling wages, and falling income, which greatly affects tenants’ rental budgets and rental willingness. All these conditions have significantly affected the rental market in a negative manner, thus further exerted an adverse impact on the tenant screening services industry market.

The Growing Necessity of the Product

Tenant screening agencies or private agencies that sell information about prospective tenants to property managers first began operating in the U.S. in the 1970s. There are many housing authorities and owners of multifamily subsidized housing that have written policies which include procedures related to tenant screening. Nowadays, many landlord and property managers perform a credit check on applicants looking for accommodation. Furthermore, the property managers are highly reliable on public records, rental references and employment verification for verifying the tenant’s identity. The practice of screening potential tenants is designed to help rental property owners lessen the risks and liabilities associated with prospective clients.

Moreover, real estate is an important asset to many business owners and investors. While it has many uses, many business owners purchase real estate to rent it for a profit. Many people erroneously believe that location is the biggest influencer regarding purchasing a rental property, but the tenant makes all the difference in the world. Good tenants that are clean and pay the rent on time are real estate owners’ ideal scenario. Conversely, tenants that don’t pay and damage the property can cause irreversible damage to real estate investors. Tenant screening helps minimize the risk of renting to high-risk tenants and reduces the risk of rental income loss. This helps protect your rental investment. Therefore, it constitutes a great necessity for many landlord or investors to make a wise decision through tenant screening service.

The Defects of Tenant Screening Service

Not all services are created equal, and some tenant screening companies have holes in their process that can make their assessments less than reliable. The result of bad decision-making during the screening process can include: Choosing unqualified renters, including those with a negative rental history; Being in violation of Fair Credit Reporting regulations through improper disclosures or improper handling of documents.; Being accused of violations of Fair Housing Laws through inconsistent treatment of applicants.

Moreover, tenant screening services treat applicants like numbers, not people. So, if an otherwise good tenant possesses a less than perfect credit profile, the screening service could reject them immediately, without assessing other important personal information about the person. This could allow qualified tenants to slip through the net. Therefore, the defect of tenant screening service is one of the limitations that inhibits the market growth.

Moreover, the security concern faced during verification of the tenant is also one of the key restraints of the tenant screening services market.

Region Overview:

From 2022-2027, North America is estimated to witness robust growth prospects.

Company Overview:

First Advantage is one of the major players operating in the Tenant Screening Services market, holding a share of 19.42% in 2022.

First Advantage

First Advantage delivers comprehensive background check solutions and insights that enable employers and housing providers to make confident choices, reduce risk, and maintain compliance.

With offices in 26 locations and a staff of 4,000+ employees, First Advantage leverages leading technology and the industry’s largest global capabilities to complete background checks in 200+ countries and territories.

Experian Information Solutions, Inc.

Experian Information Solutions, Inc. operates as an information services company. The Company offers credit information, analytical tools, and marketing services. Experian Information Solutions serves clients worldwide.

Segmentation Overview:

Among different product types, Full Income Verification segment is anticipated to contribute the largest market share in 2027.

Instant Credit Check

Tenant screening services take into account many details when deciding whether to approve or deny an application. The credit score is one of the most important factors. For credit business where the account is in the normal period of opening, the Credit Information Center will update it every month, which is a major part of the service.

Tenant Suitability Check

There are good tenants, and there are bad tenants. While no screening method is fool-proof, there are certain factors you should look at that will give you a better chance of finding a great tenant for your rental. For example, Follow the Law; Choose a Tenant With Good Credit; Perform a Criminal Background Check; Look at the Tenant's Rental History; Choose a Tenant Who Is Stable.

Full Income Verification

When the landlord asks a verification of the full income of a tenant, he is checking to see if the tenant has the means to pay for the rental fees each month. That’s why your mortgage lender will request this information – it’s a way of making sure one is able to finance the rental payments.

Landlord Referencing

For Renters, Landlord Referencing can minimize application fees to multiple rentals by providing landlords with the information they need to make a decision. Know what the landlord said and be able to challenge any inaccuracies. Empower landlords to consider all of tenants’ strengths not just your Credit Score.

Right-To-Rent Checks

The Right to Rent scheme requires landlords to check that all tenants who occupy their properties have legal status to live in the UK. This means that before you can rent a home in England, a landlord or letting agent must undertake passport and immigration checks prior to letting out the property. These rules do not currently apply if you are renting in Wales, Scotland or Northern Ireland.

Application Overview:

By application, the Small and Medium Agencies segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Tenant Screening Services market covered in Chapter 3:

National Tenant Network
LeaseRunner
CoreLogic(MyRental)
RentPrep
RentSpree
First Advantage
TransUnion
VeriFirst
TurboTenant
RealPage
Zumper
AppFolio
Cozy.co
Experian Information Solutions, Inc.

In Chapter 4 and Chapter 14.2, on the basis of types, the Tenant Screening Services market from 2018 to 2029 is primarily split into:

Instant Credit Check
Tenant Suitability Check
Full Income Verification
Landlord Referencing
Right-To-Rent Checks

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Tenant Screening Services market from 2018 to 2029 covers:

Large Agencies
Small and Medium Agencies

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)