If you are the owner of a property, be it a house, apartment or any other type, you may be looking to rent it out. As a landlord getting the right tenants for the right property is essential. Now there is a new weapon in your armory to help. A credit check for landlords can help sort the good and bad paying tenants out very quickly. This tenant credit check can be your landlord lifeline.
A credit check for landlords is simple and easy to do effectively. It is really no different to when the banks check you out for a loan or mortgage. You can get a credit report on your tenants from any of the big three credit reference agencies. These are Equifax, Experian and TransUnion. You will have to pay a small fee, before they will provide the credit check service landlords require.
To Learn More About Credit Reports For Landlords
So what can you do with this credit check for renters? Well sit down and read it thoroughly for a start. What is your possible tenant’s credit score? Over 700 is pretty good for most people today. But more importantly read the background information. How many loans and other credit does he have and how much does he owe. Are the loan payments up to date or in arrears? This payment history is often more revealing than just the credit score itself.
The wonderful thing about this type of report is that it is simple and easily to do quickly online. Once you have the information, it is easy and swift to assess the applicants. So you have an excellent first weeding out process overnight. Then you can spend the time looking more closely at all the tenants you want to. Of course the report will also tell you who the best payers are as well.
When armed with a credit check for landlords, many will raise the rent for poor credit history tenants. This is a similar practice to what banks do with repayments and a valid business decision. Renters always have the choice to pay or not. Of course it is also a little self defeating in that you are raising the rent on someone you think can’t afford it anyway. It is best just not to have them in.
So a credit check for landlords is the best up front weapon that you can buy to protect yourself, your property and hence your business. Not a bad investment of time for just a few dollars. You could always get the tenants to pay for it as well.