How to Find Perfect Tenants without looking at Credit
If you have a rental property that you manage yourself you already know screening tenants can be difficult. Doing credit checks also require time, money and desecration. But does your perfect tenant have to have perfect credit? I don't think so.
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Instructions
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The first step is to let go of the idea that good credit is going to equal a good tenant. Doctor bills that are five years old, a movie from blockbuster they didn't return 4 years ago and a credit card they had a couple late payments on could easily bring someone score down well below 600. Just the doctor bills could knock their score down a good bit. On Yea and in most counties evictions are not picked up and reported to credit agencies.
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There are other factors that should be on your application that should be looked at a lot closer than credit. Normally first impressions give you a good idea about the person. During the first showing look for red flag questions such as breaking up security deposits, significantly pro-rating first months rent and time frame for them to move.
Most of time if they are not planning to give their current landlord a notice, they probably won't be give you one either when they move.
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When looking over the application, the tenants jobs should be one of the top qualifications.
Being in the same line of work or at the same job for a significant amount of time is always a good sign. This shows stability.
Also income is extremely important, in most case the rent should be no more than 20 to 30% of their gross income.
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The second this is rent references and length of time at current address. Also a valid reason for moving is.
What ever is happening during their current lease, their is a good chance it will continue if they move into your property.
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Also in most places you can go online to your local judicial district website and look up civil suits, criminal charges and evictions for no charge. best of all is it is all public information and all you need is a first and last name and current / past address to verify you have the right person.
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Of course there is no full proof 100% accurate way to screen tenants. But from our experience first expressions and looking at job stability, income, valid past rent references and looking on your local judicial web sites will far out way whatever may be on a credit report.
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Tips & Warnings
there is no 100% accurate way to screen for tenants. if you rent to enough people, you will eventually rent to a person who is not so good.
I do not want to completely discount pulling credit, but in our experience it is one of the most insignificant ways to screen for tenants.
In most counties evictions are not picked up an reported to credit agencies. There are services in some areas that will provide eviction information for a fee.
of course we all hate acknowledging it but, people lie, so verify everything.
