Landlords may be creating their own system to have a more in depth look at selecting the best tenant for their rental properties. Zora Computing Inc has created an app to go past just the FICO or Equifax score for credit checks, and has created their own z-score for tenant checks to select the best possible potential tenants. The creator of the app, Milan Vrekic, bought rental units in Dartmouth Nova Scotia and had the continuing problem of chasing rent checks, screening applicants, and fixing tenant damage. With all of his struggles in the rental market Vrekic set out to create a more in depth application to screen tenants and to eliminate the bad tenants that make rental units a headache.
Zora Computing Inc created the z score, which makes the screening process less risky for the landlord by assigning them a z-score. This z-score provides an alternative to the traditional credit check and rates the tenants on a 1-100 rating, based on over 80 risk factors. Such risk factors may include how many times the tenant have moved in the past two years, type of job tenants have, distance from work. These risk factors will affect the z-score and it will help the landlord determine the best possible tenants for that property or unit. The goal is to provide the landlord with a bigger picture of the tenant rather than just their financial picture.
The app has been tested in Nevada, and is soon moving to Canada, so this may be a process that is used in the near future. The credit reporting industry is also looking at an alternative credit score process which makes use of alternative data, such as cell phone bills and cable bills. The thought of more in depth credit checks for more than just tenants may be in the works and could be the norm in the near future.
Here is a link to Zora: http://www.zora.io/