Why We Use Fico 9 For Tenant Screening - And Why It's Ideal for Landlords

At 2912 Realty, we’re committed to simplifying your property management experience and protecting your investment. Part of that means choosing the right tools and standards to find reliable tenants who pay on time, stay longer, and treat your property with respect.

One of the most important tools we use is the credit‑score model known as FICO 9. You may ask: Why FICO 9 (instead of older models)? What difference does it make for you as a landlord? Here’s a breakdown in plain language.

Modern, Relevant Metrics for Today’s Renters

Many older credit‑score models (for example, versions used by mortgage lenders long ago) were designed primarily to predict long‑term loan default risk. But when you’re renting a home, what matters most is consistent, monthly rent payment, minimal disruption, and a tenant who is financially steady for the term of the lease.

FICO 9 is built from more recent data and behaviors that align more closely with the rental market. It offers a more current and relevant view of an applicant’s credit profile, which helps us make better screening decisions.

Fairer Treatment — So We Don’t Miss Good Applicants

Older models often penalize past issues that may no longer reflect current risk.

For example:

• Paid collections may still hurt an older‑model score, even if the debt was satisfied.
• Medical collections (which are often outside someone’s control) might be treated harshly.
• Renters who haven’t built up a long credit history may be judged too harshly.
  

With FICO 9:

• Paid collections may be ignored, reducing impact of resolved past issues.
• Medical debt is weighted less heavily.
• Applicants with modest credit history get a fairer evaluation.

In practical terms: this means more qualified applicants — not just fewer problems, but also less time vacant.

Better Predictor of On‑Time Rent Payment

What matters most for you: a tenant who shows up each month, pays on time, and respects the home. FICO 9 focuses on recent payment trends, credit‑utilization behavior (how much of available credit someone uses), and responsible management of obligations. These match what we look for in screening for tenancy.

By using FICO 9 as part of our screening standard, we reduce the risk of late payments, lease defaults, and stressful turnovers.

Transparency and Consistency in Screening

When you entrust your property to 2912 Realty, you deserve clear, consistent standards. Using FICO 9 gives us a defensible, data‑driven basis for decisions. If an applicant doesn’t meet our screening criteria, we can point to the model and explain why — rather than citing vague judgment.

This builds trust: you understand why someone was approved (or not), and we maintain a standard that treats all applicants fairly.

What It Means for You as the Owner

In summary:

• Reduced vacancy time: Fairer standards = larger pool of vetted, eligible applicants.
• Steadier monthly income: Better screening = fewer missed or late payments.
• Less stress and disruption: Higher‑quality tenants lead to fewer maintenance surprises, fewer move‑outs, and cleaner turnover.
• Better value for your investment: By protecting monthly cash flow and minimizing risk, we boost the total return you get.

Our Screening Standard at a Glance

When we evaluate prospective tenants, we look at:

• Their FICO 9 score
• Payment history (rent + other obligations)
• Credit utilization and recent credit behavior
• Employment, income stability, and supporting financials
• Rental history (if available)
  

We combine these data points with our property‑specific criteria (location, condition, lease term) to select tenants who meet both your financial and property‑care standards.

Bottom Line

Using FICO 9 is a strategic choice: it aligns with today’s rental market, treats good tenants fairly, and supports our goal of making your ownership experience smoother, more profitable, and less stressful.

At 2912 Realty, we don’t just manage properties — we protect your investment. And our screening process reflects that. Have questions?

If you’d like to dig deeper into how we screen tenants, what FICO 9 means in practice, or how this affects your property specifically — we’re happy to walk you through it.

Contact us anytime.