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Tenant Screening ROI Calculator
Proper screening prevents most evictions and bad-debt losses.
ROI multiple
2.16
Total screening cost
$100,000
Savings value
$216,000
How the math works
Screening cost = applications × rate. Savings = evictions prevented × cost.
800 × $125 = $100k screening vs 12 × $18k = $216k savings = 2.16× ROI.
How to Use
- Enter annual applications.
- Enter screening cost per applicant.
- Enter eviction cost avoided (per incident).
- Enter evictions prevented.
- Read ROI.
Frequently Asked Questions
Screening components?
Credit check: $15-30. Criminal background: $15-40. Eviction history: $10-25. Income verification: $15-30. Employment verification: $15-40. Reference calls: $25-50 (staff time). Total: $100-200 typical full screening.
Eviction costs avoided?
Unpaid rent: $3-8k typical. Legal fees: $1500-5000. Damage repair: $1k-8k. Turnover cost: $1500-4500. Vacancy loss: $1500-4500. Total $10-30k per bad tenant. Screening ROI obvious when even 5% of evictions prevented.
Scoring thresholds?
Minimum credit: 620-680 (luxury: 700+). Income: 3x monthly rent. No evictions within 7 years. Employment: 2+ years stable. Criminal: case-by-case (protected classes rules). Document thresholds in fair housing compliant policy.
What documentation matters here?
Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.
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