7 factors to consider when doing Credit Check for Renters

credit report

As a prospective property owner, it is essential to consider how the potential lodgers manage their finances. Rent and other important expenditures ought to be the first priorities for a responsible boarder. This is because shelter is a basic need. Unfortunately, not all potential clients can be accountable in paying their rental charge on time. The following are factors to consider as a landlord;

Details of the prospective tenant

The most vital facts you require are the personal details of the prospective lodger. This information comprises of the name of the potential boarder, his social security number and his/her address. You can acquire this information after giving the rental application to the renter. These details are critical when running the credit check for the would-be occupiers.

Where to get the credit report

There are three credit bureaus that are widely known to offer these reports. These three bureaus include; Equifax, Trans union and Experian. It is impossible to reach these bureaus directly to obtain the reports. However, to serve their clients better, they have agents all over the market. Thus, seek a credit reporting agencies operating closer to you.

Collection of fees

In numerous states, it is legal for the landlords and property managers to impose a fee on credit check for renters. To find the report, you will use your time and energy and the client must carter for that. However, the fees you charge should be reasonable when compared to the price of credit check. Ensure the potential renter understands the fee does not guarantee him/her the house.

Asking clients for a copy of their report

If a client is looking for more than one rental unit, it would be expensive for him/her to pay every landlord to produce the same copy. In such cases, ask the prospective renter to provide the copy of the report. To prove its authenticity, ask for the original copy. However, in some states the landlords are not allowed to take copies from their prospective clients.

Rejection of a tenant

The purpose of these reports is to give you detailed information about the tenants. This information contains both their negative and their positive aspects. If you deny renting an individual due to any negative information from the report, give him/her the name and the address of the agency. This is a law that ought to be followed. Tenants can ask for a copy of that report within 60 days.

Legal issues

Property managers have a legal authority to use the credit report only to select tenants. However, during the selection process, discrimination is illegal. Setting tougher standards to hinder people from a particular race of community to rent the apartment is not acceptable by law. Landlords are expected to judge all their prospective clients fairly.

What to look for in the report

With the report at hand, you need to look at delay in paying bills and loans. Find out if the clients was ever convicted or arrested. Look for any history of evictions. Lastly determine if the tenant is financially active enough.

Author Bio

Thomas Kendi is a real estate developer with a wider experience in credit check for renters. He is a great fun of football. He enjoys reading motivational books during his free time. For more advice, information and assistance visit, https://www.myrentalhistoryreport.com/

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