When people rent out properties, they need to have a way to know that their property is going to be in good hands. So, before entering into any sort of rental agreement, one of the best things a landlord can do it run a detailed background and credit history check on someone – and while most landlords find nothing worrisome, it still is something that should never be skipped. So, after obtaining permission from their potential renter, a landlord can verify things such as proof of income, their credit rating, and their rental history if they are not first-time renters. The credit report can give out information that will help the landlord decided if this individual will be able to pay their rent on time.
How to Run a Credit Card Check on Prospective Tenants
Before a landlord can begin screening potential tenants, they will need to obtain written permission from the individual, which is usually included on their rental application. The application will include information such as their social security number, which is the number one thing needed when running a credit check.
In addition to their social security number, the landlord should also get as much financial information as they can from the tenant. This includes their bank account detail, employment information, and anything else that would show their amount of income, ensuring that paying rent would not be an issue. The landlord must also verify all of this information with the tenant personally.
When it comes time to run the credit check, the landlord will have many companies to choose from, all of which charge a small fee. Once the report is returned, the landlord should review the information, and if there are any huge issues, the tenant should be denied.
To help make the screening job a bit simpler, a landlord can use companies such as Tenant Verification Service, AAA Credit Reporting Services and Experian. All of these agencies can provide a credit report, plus other useful information. However, since there is always a chance of mistakes on the credit report, the landlord must always clarify their findings with the potential tenant. Also, in many cases a tenant may have a low credit score due to issues out of their control, so it’s always a good idea to give the individual a chance to explain their situation.
Finally, if a landlord decides to deny a tenant, if is considered polite to notify the the individual of the reason. However, there is no need for a personal meeting to do this- a simply letter or phone call will work.
Using a screening agency can often make the process of screening tenants much easier and less stressful. It is important to remember that a credit report should never be the only deciding factor when choosing tenants; other factors such as employment verification and any criminal history are also very important.