Credit checks are standard operating procedure when renting property nowadays. It can be as simple as the landlord calling up the prospective tenant's current and previous landlords and employer to inquire about employment and rental history, or the landlord paying an agency to do this for him.
The reason for running credit checks is to minimize the risk on the part of the property owner. As much as landlords would want to weed out applicants who are likely to cause issues later on.
Rental properties require applicants to disclose on their rental application their full name, current address, social security number and date of birth. These are basic information needed to conduct a credit check.
All landlords are required to inform possible tenants they are going to perform a credit check. Usually this notice is found on the application and the interested tenant has to sign a consent form before the landlord can run a credit check.
The applicant's consent to the credit check can also be on a separate release form that authorizes the credit check. In any case, the applicant's consent must be in writing and duly signed.
To save time, most landlords outsource credit checks to agencies especially if there are many applicants. However, credit reports are expensive so most landlords have the applicants carry the cost of the credit check.
The agencies that provide credit check services either charge per report or require a membership fee that covers everything. Aside from the standard credit report, these agencies look into and provide employment history, criminal history, rental payment history, evictions, bankruptcies, and other relevant information.
When a person doesn't meet the landlord's requirements, the landlord must notify in writing that they did not meet requirements. It is not required to disclose any details, but it must mention that the decision was made based on the credit check. This must be done in order to meet the terms of the Fair Credit Reporting Act.
The reason for running credit checks is to minimize the risk on the part of the property owner. As much as landlords would want to weed out applicants who are likely to cause issues later on.
Rental properties require applicants to disclose on their rental application their full name, current address, social security number and date of birth. These are basic information needed to conduct a credit check.
All landlords are required to inform possible tenants they are going to perform a credit check. Usually this notice is found on the application and the interested tenant has to sign a consent form before the landlord can run a credit check.
The applicant's consent to the credit check can also be on a separate release form that authorizes the credit check. In any case, the applicant's consent must be in writing and duly signed.
To save time, most landlords outsource credit checks to agencies especially if there are many applicants. However, credit reports are expensive so most landlords have the applicants carry the cost of the credit check.
The agencies that provide credit check services either charge per report or require a membership fee that covers everything. Aside from the standard credit report, these agencies look into and provide employment history, criminal history, rental payment history, evictions, bankruptcies, and other relevant information.
When a person doesn't meet the landlord's requirements, the landlord must notify in writing that they did not meet requirements. It is not required to disclose any details, but it must mention that the decision was made based on the credit check. This must be done in order to meet the terms of the Fair Credit Reporting Act.
About the Author:
The individual has been blogging on credit for the last four years. Moreover, the writer enjoys writing on New York neighborhoods, such as Chinatown condos as well as Lincoln Center apartment.
No comments:
Post a Comment