A large number of people invest in properties every year to earn rent from them. The landlord prepares his house and lets it out to others to live and call it a home with utmost trust that they will treat it well and pay their rent on dues. In today’s time when the crime rate is escalating at a rapid pace, it is important to be cautious and takes all precautions that ensure the safety of their property. Running background credit check tenant is one of the ways that can save landlords from unpaid rent, losing sleep over damage to their properties, going through the stress of evicting tenants in the worst case and more.
Since it is not possible for the landlord to carry out a comprehensive check, it is better to use the services of a property management company that check the creditworthiness of the tenant. The company also check the identity of the tenant to find if it is correct by conducting a detailed background check of the tenant. This check will give a clearer picture to the landlord about the prospective tenant and he can rest assured about getting his rent on time and no chance of his property getting damaged.
Before renting out a property to a new tenant, check if he or she will be able to pay the rent. Many times, landlords lease their property without running a background check about their creditworthiness and this results in landlords losing out their rental property and getting mired in the frustrating and stressful legal process to get it back. It is thus important to conduct credit check for landlords. It is what they need to do.
Firstly, they need to get in touch with a credit reporting agency and get the FICO Score and credit history of the potential tenant. There is no dearth of tenant screening companies that specifically focuses on handling tenant background checks. Ask the service provider for information like name and current address of the tenant and his individual taxpayer identification number or social security number.
It is prudent to inform the tenant beforehand about checking his background and credit. In case, you would like the tenant to cover the cost of this check, let him know in advance. To avoid any issues later on, it is advisable to get permission from the potential tenant about running his background check.
The credit report received after a thorough check must give you information like misdemeanors or felonies, bankruptcy filings, delinquent payments, and civil suit liabilities. This information will help to check the credit history of the potential tenant. Ask for at least two years’ history so that it can raise red flags if any. Keep the file and paperwork safe in case it is required later. It is not necessary to share this information with the prospective tenant.
Armed with pertinent facts and information can help you make the right choice and rent out your property only to a deserving person. If you spot any warning sign, it is better to move on and look for another tenant.