Rendin has built the background check around a credit check, credit score and previous customer experience. This method alone helps screen out a very large number of potentially problematic tenants.
A background check is, first and foremost, a tool to ensure we trust a potential tenant. The tenant takes the risk for their actions, not the landlord.
Every prospective tenant who wants to rent through Rendin has to pass an automatic background check with an Estonian ID. There are three types of results:
1. Successful check, i.e. a positive result.
In this case, the system evaluates that the candidate's payment behaviour is in order. Therefore, they don't have to pass additional manual check. Also, they won't be asked for further information or documents.
However, the landlord makes the final selection among the candidates who pass the background check. In addition, every landlord can carry out extra background checks on their own, for example, by enquiring about criminal records or searching on Google and/or social media.
2. The check gives a "pending" status, i.e. a manual review is necessary.
The system sets people in "pending" status if there isn't enough information. This includes many foreigners who are likely to be new arrivals, so their local ID is still very recent, and they have no credit history.
In such cases, our customer support specialist may ask the prospective tenant for additional information, such as a personal identity document and an employment contract which must be valid, termless and signed by a local employer.
3. The check fails, i.e. the system detects a candidate's problematic payment history.
This happens when the system detects a problematic payment history of the tenant candidate (debt collection claims, debts to service providers) or insufficient ability to pay (active quick loans, rental property disproportionately expensive for the income). Statistical models of the system also indicate when a person undergoing a check is at a very high risk of defaulting on their financial obligations in the future.
In addition, Rendin has its own database of tenants who can no longer rent a home through our platform since they've caused problems during previous tenancy.