Scenario:

A landlord, who we’ll refer to as Eleanor, operating a 3-unit residential building and was evaluating applications for a vacant one-bedroom apartment. One applicant, who we’ll refer to as Jim, presented a standard tenant screening report with a credit score of 680, no criminal record, and no prior eviction filings.

Specific Data Point from TenantTracks:

Eleanor, utilizing the TenantTracks’ tenant screening platform, ran a report as she’s frequently done in the past, but this time, the “Summary Page” highlighted a new icon she’d never seen before called Negative Tenant Performance and the details were displayed in the report body that followed. This revealed a specific entry for Jim reported by a previous landlord: "Cash for keys paid in lieu of eviction" with a documented date of 2023-08-15.

Eleanor's Decision-Making Process:

Despite the seemingly acceptable standard screening report, the "Cash for keys paid in lieu of eviction" flag raised a significant concern for Eleanor. Eleanor interpreted this as a direct indicator that Jim had likely faced lease termination due to non-payment or other lease violations, and the previous landlord opted for a financial settlement to avoid the costly and  lengthy eviction process.

Eleanor placed significant weight on this specific data point. She considered it a more reliable predictor of potential future issues than the credit score alone, as it directly reflected a prior instance of a tenancy ending under negative circumstances, without a formal legal record.

Please remember that all decision-making must be tied back to a standard tenant selection plan or screening criteria, whichever you want to call it. This living document can be updated as needed and TenantTracks has a sample available online.

Outcome:

Based primarily on the "Cash for keys paid in lieu of eviction" report from TenantTracks, Eleanor decided to deny Jim's application. Eleanor communicated to Jim that his application was denied using the standard denial letter in the TenantTracks user dashboard. Eleanor subsequently rented the apartment to another applicant who had no negative payment performance reported on TenantTracks and a comparable standard screening report.

Quantifiable Potential Impact (Estimated):

The cost of a formal eviction can cost $5,000 or much more, including legal fees, court costs, and potential lost rental income during the eviction process. By identifying and avoiding a tenant with a documented negative rental history suggesting a predisposition towards lease termination requiring financial incentive, Eleanor potentially mitigated a significant financial risk.

Information that is reported in the Landlord-Reported Tenant Payment Database:

1. Late Payment 
2. Partial Rent Payment
3. Notice To Quit Served
4. Summons and Complaint Served
5. Cash for Keys
6. No Payment and no legal action taken
7. Notice of Lease Violation

Conclusion:

This specific instance demonstrates the direct and decisive impact of the TenantTracks’ Landlord-Reported Tenant Payment Database feature on Eleanor's leasing decision. Even when standard screening metrics appeared acceptable, this specific data point provided a critical insight into the applicant's past tenancy behavior, leading to a decision that prioritized risk mitigation and potentially prevented future financial losses and administrative burdens associated with managing a problematic tenancy.

Notably, this valuable feature, allowing landlords to report and access such crucial tenant performance data, is offered by TenantTracks free of charge to users with both their Open Access and Optimum-10 account types, making it an accessible and powerful tool for landlords seeking to make more informed leasing decisions. 

The effectiveness of this feature is directly amplified by the participation of more landlords; as more contribute their experiences, the database becomes an increasingly robust and reliable resource for the entire landlord community.

The availability of this specific type of negative performance reporting proved to be the determining factor in Eleanor's assessment of Jim.