How to Run and Review a Tenant Credit Check
Do you manage rental properties?
If so, then you understand the importance of minimizing vacancies so you can generate as much revenue each month as possible. And yet you also need to focus on quality tenants who pay rent on time and treat your rental units with respect.
But how can you make sure each applicant is the kind of person you want living on your property? This key is to run a credit check each time someone submits a rental application.
Here we take a look at how to run a tenant credit check. Keep reading to learn the value of paying for a tenant screening report for your small business.
The Purpose of Screening Renters
It’s important to understand that bad tenants can quickly turn your life into a nightmare. Some bad tenants refuse to pay rent on time. Others damage the property where they live, and many are noisy, making them terrible neighbors.
These are all situations you should avoid whenever possible.
Keep in mind that once a tenant has moved in, it can be incredibly difficult and expensive to get them out. Thus it’s best to carefully screen each person to ensure you’re renting to only the highest-quality tenants.
Things that Show Up On Credit Reports
What type of information shows up on a tenant screening report? For starters, you will see specific information about the applicant’s financial history.
This includes missed payments, current debt load, tax issues, as well as their overall credit score.
You can then use this information to decide whether or not the applicant is a good candidate for a potential tenant or someone to avoid.
Information You’ll Need From Each Applicant
Before you can run a screening report for a prospective tenant, you’ll need to ask them for some basic personal information. This includes their names, current addresses, social security number, or individual taxpayer identification number.
The best policy is to give them a form for providing this information and to keep this form in a secure location.
Be sure to check out Rentsafe.lease.
The Credit Check Process
First, get the applicant’s permission to run a credit check with Experian, Equifax, or TransUnion. Next, you’ll need to confirm with each credit service that you are the landlord of the rental property where the application has been submitted.
The Cost Of Running A Credit Check
Running a credit check for an applicant will typically cost between $25 – $50, depending on how much information you’re wanting the reporting service to provide.
Keep in mind that some applicants might offer to provide a copy of their credit report, but you’d be wise to run your own tenant screening report to avoid potential scams.
A Guide To Running A Tenant Credit Check
It’s no secret that owning commercial real estate is a great investment. The key to protecting your property is to run a tenant credit check for each applicant. Fortunately, this guide to the tenant screening report process will help you avoid renting to the wrong people.
Please continue exploring the real estate-related articles on this blog to discover more content filled with great tips and advice.