How to Get a Credit Report on a Potential Renter
As a property manager, I have learned through trial and error the easiest and most cost-effective way to obtain a credit report on a potential renter. Many people are intimidated by this task, but it is fairly simple as long as you take the proper steps.
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Instructions
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Get a signed and fully completed rental application. This application must state in clear terms that you will obtain a credit report, as well as any other information you will be gathering. To be appropriate for obtaining a credit report, the application has to have the applicant's full legal name, birthdate, current address and Social Security number. If the application is not signed and dated by the applicant, is is not valid to use as authorization for a credit check.
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Visit the website of the credit-reporting agency you want to use. The three main credit-reporting agencies in the United States are Experian, Equifax and Trans Union. Each of these companies' website will present information about how to obtain a credit report, and a phone number to contact a representative
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Call the credit-reporting agency and give the representative a summary of what you need. Let her know you have a signed application that gives permission for you to obtain a credit report. The representative will ask you some questions and identifying information about you and the applicant. She will accept payment and give you the fax number so you can fax in the signed application and a signed request.
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Fax the two forms to the reporting-agency representative. Make sure you indicate on your request how you want to receive the report. For quickest service, either email or fax are good choices: You will usually have the report within 2 hours. If you are not in a hurry, you can opt for regular mail delivery, which takes approximately 5 to 7 days.
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Approve or deny the potential renter according to the information on the credit report. This means you need to know what you are looking for when you receive the report. Some landlords look at the Beacon score, others look at the age of delinquencies and bad items on the report, and others only look at the most recent year's activity. The choice is yours; a credit report is full of information.
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Tips & Warnings
Many landlords do not rely only on a credit report; they also do a background and criminal check, as well as verifying employment, banking and previous rental history. Several companies can be found online that specialize in compiling tenant screening reports, which include credit and other information, for a flat fee.
Do not attempt to obtain a credit report without a signed application. Always specify on the application what methods of approval and screening will be used in processing the application.
