How to Run a Credit Check for Landlords

As a landlord, you want to make sure that your tenants will pay the rent on time and to take good care of your property. To help minimize the risk of financially irresponsible renters, run a credit check of applicants so you can view their credit history. By law, a rental application is a legitimate reason to check an individual's credit report. Though you can have your potential tenant(s) request their free annual credit report, by requesting the report yourself you can make sure that it is not altered.

Things You'll Need

• Renter information

Instructions

1. Require every adult who is a potential resident to fill out an application to rent. That means separate applications for spouses or roommates.

2. Get the permission of the prospective renter in writing as part of the application process. You are not allowed to check someone's credit without their permission.

3. Gather the required identifying information needed to request a credit report on the application. The information you need includes the person's full name, two most recent previous addresses, Social Security number and date of birth.

4. Request a credit report from one or more of the three major credit bureaus: TransUnion, Equifax or Experian. You can do this online (see resources). You can either view the report online instantly or have a report mailed to you.

5. Inform your potential tenant(s) if you declined their application because of information you found on their credit report. You are required by law to do this because it gives the applicant the opportunity to correct any incorrect information in their credit file.

References

• Intentional, but Improper Credit Checks Could lead to Problems
• Lenders Can Share Credit Reports with Tenants
• 5 People Who Check Your Credit

Resources

• Read this Article in Spanish
• Experian
• TransUnion
• Equifax