How Credit Checks Should be Run on Prospective Tenants

Credit Checks

As your past predicts your future in the best possible way, having good credit history – which is free from any late payments, evictions, and bankruptcies – provides the landlord with some kind of assurance that the tenant will be paying the rent in time their rental apartments are being rented out to them. Running credit check can be quite simple. All you need is the personal details of the applicant along with their permission for screening their credit report. Those details should be provided to credit agencies, and they’ll provide you with the report inside just one day.

There isn’t any specific permission requirement for the landlords to run a credit check as per the laws. However, it’s implicit in legislation’s language. To follow the best practice, it is advisable to get your prospective tenants to sign as well as date the statement agreeing on credit check prior to contacting any credit agency – in order to have appropriate wording, it can be a good idea to consult an attorney or rental agent. For ordering credit check, you’ll need the name of the tenant as well as his SSN and address. This information is requested by most of the landlords in the rental application.

Sometimes landlords charge their tenants a specific fee to carry out credit check whereas the costs are absorbed by others on their own. It is just one’s personal preference. But if a fee is taken by you, you may be restricted by the state low on the amount that can be charged.

When you have to rent out your apartments in Richardson, it should be kept in mind that many companies are there which offer screening services against prospective tenants and one can find so many agencies operating online as well. Any reputable company can be expected to ask for upfront registration and provide the credentials of your as landlord, like personal identification as well as the proof that one of the apartments for rent in Richardson is being owned by you. It has to be verified by Credit Company that you’re the property owner and not somebody frivolous who just wants to view someone else’s credit report, which is prohibited in the law. Reputable agencies should also inquire you to fax or scan the signed consent of the tenant prior to running the check.

Most of the agencies allow you to run credit check by providing the information of the tenant online. You just have to follow the instructions that may appear on screen. Make sure to carefully check all the would-be tenants in a same manner. Screening some of the applicants, leaving others, can make you vulnerable for the discrimination claim while renting out apartments for rent in tax. Once you have submitted the details of the tenants, the credit check might take few days or even just a few minutes to complete. You’ll see any negative events, like chronically late payments, evictions and bankruptcy in one glance. You should also check for debt load of the tenant; if the tenant has committed the major part of what he earns to the debt repayments, then he may not be able to make timely rental payments.