A landlord credit check provides the landlords with a means to gauge the amount and type of risk a potential tenant pose. Simply put, these checks are used to determine the likelihood of a tenant being able to pay rent in full and on time. Of course, there is no way to say for sure but a landlord and other background checks work on the assumption that the future action of a natural or juridical person, to a certain extent, can be determined by past action. Read along to get acquainted more on how to run tenant credit check.
A little background check helps you figure out what exactly you are getting into, and it is up to you to decide just how deep you want to dig. With this screening, you look into the personal life based on credit or legal history. It may sound like an uncomfortable process, but most applicants realize it is a necessary evil.
Always make sure to ask who the named tenant will be. Will it be a business entity, corporation, a person, persons, etc.? This is because a corporation or other juridical entities have a separate report, otherwise known as the business credit-report and that the person named as a renter will be the one a landlord goes after first.
For instance, if the tenant named is Corporation ABC made up of Mr. A, Mr. B, and Mr. C. Then the correct check would be for the corporation, not the individuals who make up the corporation. Why? Simple, because under the law a corporation is separate and distinct from its members and as a general rule the liability of the corporation does not extend to the individual owners.
More importantly, look for rental history during the tenant screening. Student loans are an expense like any other that is put on the back burner by many, especially if the payment is higher than others. Not that this excuses anything, but just keep it in mind.
The report may cost $30 and hopefully will be put away and never be used but should the situation arise where it is needed it will pay for itself many times over. It is important that you get the first steps right so should you need to trace a lessee through the tenant check you can.
The evaluation is made to a credit reporting agency of choice. There are of course 3 or 4 major reporting agencies right now, and the report may or may not come with the score that can have for an additional fee. It is up to the landlord to determine: What reporting agencies to ask, to get more than one report and to avail of the score/scores.
Warning hints could include previous evictions, problematic delinquencies or a fall behind on lease payment. Pay close attention to job stability and criminal history. It is essential to consider the latest historical past with more weight than the antique record. Consider applicants that don't have evictions, criminal record, and default on their rental installments and have a stable job.
A little background check helps you figure out what exactly you are getting into, and it is up to you to decide just how deep you want to dig. With this screening, you look into the personal life based on credit or legal history. It may sound like an uncomfortable process, but most applicants realize it is a necessary evil.
Always make sure to ask who the named tenant will be. Will it be a business entity, corporation, a person, persons, etc.? This is because a corporation or other juridical entities have a separate report, otherwise known as the business credit-report and that the person named as a renter will be the one a landlord goes after first.
For instance, if the tenant named is Corporation ABC made up of Mr. A, Mr. B, and Mr. C. Then the correct check would be for the corporation, not the individuals who make up the corporation. Why? Simple, because under the law a corporation is separate and distinct from its members and as a general rule the liability of the corporation does not extend to the individual owners.
More importantly, look for rental history during the tenant screening. Student loans are an expense like any other that is put on the back burner by many, especially if the payment is higher than others. Not that this excuses anything, but just keep it in mind.
The report may cost $30 and hopefully will be put away and never be used but should the situation arise where it is needed it will pay for itself many times over. It is important that you get the first steps right so should you need to trace a lessee through the tenant check you can.
The evaluation is made to a credit reporting agency of choice. There are of course 3 or 4 major reporting agencies right now, and the report may or may not come with the score that can have for an additional fee. It is up to the landlord to determine: What reporting agencies to ask, to get more than one report and to avail of the score/scores.
Warning hints could include previous evictions, problematic delinquencies or a fall behind on lease payment. Pay close attention to job stability and criminal history. It is essential to consider the latest historical past with more weight than the antique record. Consider applicants that don't have evictions, criminal record, and default on their rental installments and have a stable job.
About the Author:
You can find a detailed overview of the reasons why you should use tenant credit check services at http://www.clearscreening.com/tenant-credit-check right now.
No comments:
Post a Comment