How to Check a Renter's Credit History
If you own rental properties, you probably know how difficult it can be to deal with a tenant who pays his rent late--or not at all. Obtaining a prospective renter's credit history can help you make an educated decision about whether to rent him an apartment or house.
Running credit reports on applicants is a simple process. Once you have established accounts with the reporting agencies, you can obtain credit information any time of day or night.
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Instructions
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Include a credit disclosure notice with all rental applications. This notice requires the applicant to give you permission to obtain her credit report, personal history and other information protected under privacy and credit reporting laws. Do not accept an application unless all adult tenants sign this notice.
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Establish business accounts with the three major credit reporting agencies: Experian, TransUnion and Equifax. There is a membership fee for establishing an account with each agency.
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Establish an account with an agency such as the National Tenant Network that provides information on an applicant's past rental payments. Other rental reporting services include You Check Credit and Landlord 2 Landlord (see Resources section).
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After you have received a completed application and credit disclosure notice, fill out the credit report request form on each of the credit reporting agencies' websites. This report will include the applicant's personal information, including Social Security number. Also, fill in the request form on the National Tenant Network's website. Submit the forms to receive the applicant's credit and rental history.
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Tips & Warnings
Credit reporting and rental history agencies might charge per-report fees in addition to membership fees. Check current prices before you sign up.
You can charge application fees to cover the costs of the reports. Tell prospective applicants upfront about any application fees. If they don't want to pay the fee, you won't want them to take up your time.
Have an attorney draft your credit disclosure notice so you can make sure you are legally covered. If you obtain information not disclosed on the form, you could be in violation of privacy laws.
References
Resources
- Photo Credit credit card and pen image by PaulPaladin from Fotolia.com
