By Vanessa Perry
Determining if a potential resident meets the criteria “This critical component of the resident screening process to live in a community can be a painstaking process, but it doesn’t have to be. Gone are the days of traditional income verification practices when an applicant had to provide several documents to prove financial status. Not only can these documents — pay stubs, W-2 forms, income tax returns, bank statements — take time to track down, but they can also include inaccurate information and have the potential to be altered. This can lead to higher eviction rates and decreased NOI in the long run. Further, it’s very time-consuming for property managers and staff to thoroughly review and approve financial documents for every application.
Benefits of an Automated Income Verification Process
Income verification is an essential step for all property management companies.
“This critical component of the resident screening process enables companies to make informed decisions based on accurate financial data,” Business Development Manager Mike Niebauer said. “That’s why many communities are transitioning to automated income verification methods. This typically involves technology that quickly collects financial information from each applicant’s financial institution. The benefits of using automation in place of an intensely manual process are clear and far-reaching.”
Increase Accuracy and Speed
Automated verification processes can increase the accuracy of the information since the data is coming directly from a bank, credit union, or other lender. As a result, documents no longer need to be manually verified and human error is reduced. This can help operators make better decisions for a community, and in minutes rather than several days or weeks.
Reduce Fraud Capability
Migrating to an automated verification process also delivers greater confidence in the validity of the data. Because the records come straight from a verified source, the likelihood of receiving falsified documents or inflated income to qualify for a home is greatly diminished. Moreover, the process helps identify reliable prospects and may reduce the likelihood of late payments and costly evictions in the future.
Lessen Potential Friction
While requesting financial records from prospective residents is a necessary part of the screening process, it’s not the most pleasant conversation to have when there are questions or concerns about the provided documents. An automated approach eliminates a source of friction in the application process so that a community manager can focus on the most important task — welcoming a new resident to the community.
Income Verification Solution in Rent Manager
Rent Manager property management software aims to deliver all the resources needed to efficiently manage a community. To better equip manufactured housing professionals in navigating the leasing process, Rent Manager partnered with consumer reports and verification services provider AmRent to streamline income verification efforts. With its new feature, powered by AmRent, customers can safeguard and simplify the resident screening process without leaving the software. Quickly and securely obtain insight into an applicants’ financial status by reviewing bank transactions, and track deposit and payment trends.
Compatible with more than 10,000 financial institutions, income verification in Rent Manager enables manufactured housing professionals to operate with confidence and make educated decisions for a community. Further, this helpful tool provides a user-friendly solution for applicants to submit their bank statement snapshots for review.
The process involves three easy steps:
Step One: Send the Prospect a Secure Link
Once the process is started, Rent Manager will automatically send the applicant a secure link via text or email message.
Step Two: The Applicant Provides Bank Account Information
Using the provided link, the applicant logs into their bank account, grants permission for access, and chooses which accounts to include in the account snapshot.
Step Three: View the Applicant’s Banking Activity
Once the process is finished, a read-only report of the applicant’s recent financial is sent to the Rent Manager system for you to review.
Rent Manager’s new income verification feature can help identify the right applicants for a community and is a great addition to a community’s resident screening strategy.
Vanessa Perry is a content developer for London Computer Systems, a developer of business-critical software whose flagship product is Rent Manager property management software, a fully customizable program with features including a double-entry accounting system, short-term rental resources, metered utilities tools, home asset tracking capabilities, intuitive mobile apps, more than 450 insightful reports, and an API that integrates with the best proptech providers on the market.
