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October 2010 Issue
RentGrow "In the Know"
Over the past 5 years, RentGrow has watched the rapid evolution and growth of criminal screening in the multifamily industry. In 2005, 42% of our customers performed criminal screening on their applicants - in 2010, it's 94%! It's clear that the industry has embraced criminal screening as a standard practice. In this newsletter, we'll discuss some of RentGrow's recommended best practices for criminal screening in an ever-changing public records landscape.
There have been numerous advances in public records data over the years. There is more instant online data available, and it is generally more affordable than it was in the past. This is a great thing for screening companies and multifamily operators. However, criminal records data is still an evolving area.
There are regional differences in the availability and quality of criminal data. Different reporting practices and state laws impact the format and details available in online criminal data sources. State mandated privacy acts have redacted certain portions of data from online public records databases. Most states exclude social security numbers from online criminal records, and some states exclude date of birth, address, and/or offense details.
In addition to privacy-related restrictions, the recent economy has had an impact on criminal databases in some areas. With state and local governments struggling with budget cuts, courthouse furloughs have had an impact. Some courts are mandated to close specific days each month, slowing down how quickly records are processed and updated.
It's apparent that online public records databases have some inherent limitations and differ from region to region. So, what is the best approach?
RentGrow's "best practice" for criminal screening seeks the optimal balance between data quality, turn-around time, and cost. In some areas of the country the online criminal databases are strong and the records are detailed, thus an instant online national criminal search is highly effective. In other states this is not the case, so a supplemental local courthouse search is recommended. We can advise our clients on the regional differences. In appropriate areas, a supplemental local search can be automatically included and triggered through your screening program.
We also advise that consistent criteria be applied to criminal searches. It may be ineffective to leave criminal records review solely in the hands of the leasing staff, since they are probably not all experts in deciphering and de-coding public records. It may also be ineffective and irresponsible to totally automate the "scoring" of criminal records. There is a possibility of false positives, and the variability of the record format and detail does not lend itself to a 100% automated evaluation. What we recommend is a hybrid approach. The screening system can be programmed with the intelligence to search the appropriate databases depending on locale. If no records are found, the screening process is complete. If records are found, your screening provider should assist with filtering and evaluating the records against your company's criteria.
It is important to be aware of the criminal data landscape in the multifamily industry. You must strike the optimal balance between data quality, turn-around time, and cost. You should also have a system in place that helps you evaluate criminal records accurately and consistently.
© 2010, RentGrow, Inc., Resident Screening Experts. A Yardi Company. Sign up to receive "In the Know". For permission to reprint this article please send your request to newsletter@rentgrow.com.
If you have additional questions about other aspects of your resident screening strategy you can contact RentGrow at 1-800-RENTGROW (1-800-736-8476) or visit our website at http://www.rentgrow.com. | 
