Run Your Tenant Credit Check Easily and Cheaply Right Now
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Running a tenant credit check is perhaps the most important step when screening tenants for your rental property. Your applicant's credit report can give you a wealth of information to help you decide if he is able or willing to pay his rent on time, every time.
Getting a tenant credit check is probably easier and cheaper than you think. You can always recover the cost of the check by asking for a small rental screening fee for your applicants. You can also save money and time by choosing to run credit checks only on your short-listed applicants.
How to Get Your Hands on Your Tenant's Credit Report
To check on someone's credit and rental history, you'll need have him complete a tenant application form with his full name, employment history, residential address history and social security number.
Once you obtain written permission from the prospective tenant, you can contact the major credit reporting agencies Experian, Equifax or TransUnion. If you are new to this, It's probably easier to go through a service that specializes in assisting landlords with this process.
If you have multiple rental properties and need to run a tenant credit check often, you can even subscribe to such a service at a discount. You'll need to evaluate your specific needs to decide if the time saved is worth the extra cost.
Major Things to Watch Out for in Your Renter's Credit Report
While it's common for renters to have less-than-perfect credit, what you really want to look out for is prior evictions, or serious delinquencies or default on rent payments. Even though people might be behind on credit cards and other types of bills, the good news is that most people pay their rent first since everyone needs a roof over their head.
Does the person have a clean criminal background? Are they gainfully employed in a stable job? Does their rental history indicate any past evictions or other serious rental delinquencies? If the answer is no, then they'll probably make a decent tenant even if they have a few late bills.
Also, consider how old any negative rental history is. If they had problems seven years ago but their record is spotless during the last two years, you can still consider renting out to them.
Go Beyond Your Credit Reports for a Complete Check
A credit report alone may not show a potential tenant's current employment and rental history. This is why it's vital to run a complete check. Things to watch out for include their criminal background, credit history, employment, and rental history.
Digging up these details by yourself can be quite time consuming. In addition to running credit and background checks, you will also have to contact employers, former landlords and financial institutions. This is why it's helpful to use a tenant screening service if you are strapped for time.
The bottom line is that running a tenant credit check can help you have a clear picture of whether your potential tenant is someone that will take care of your rental property, be a considerate neighbour and most importantly pay the rent on time each month.
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Teo Zhenjie has been showing landlords how to manage their tenants and rental property effectively on Propertydo http://www.propertydo.com/ - To learn more important tips on tenant credit check, visit his website today for step-by-step real estate guides, free resources and forms.
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