How to Run a Credit Report on a Tenant
Before approving a tenant, you should run a credit check on him to determine his creditworthiness. A credit report contains information regarding how responsible the prospective tenant has been with money. It will show whether he has paid bills on time, filed for bankruptcy, defaulted on a loan or ever been evicted. The credit report helps you determine whether the tenant will pay the rental fees on time and treat the property responsibly.
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Instructions
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Contact an agency that runs credit checks for landlords. For example, Experian provides a report that covers the information from the top three reporting agencies: Experian, Equifax and TransUnion. Some agencies also provide information in addition to the credit report, such as the tenant's criminal record, employment history and rental history. You usually have to pay a fee, which can be per report or period of time, depending on the agency.
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Obtain an application form from the agency.
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Present the application form to the tenant and have him complete it. The tenant usually has to provide personal details such as his Social Security number. He also has to sign a statement authorizing you to run the credit check.
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Submit the application form to the agency, which will conduct the credit check and give you the report.
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Tips & Warnings
In your rental advertisement, mention that you will run a credit check, which likely will eliminate prospective tenants with low scores.
References
- Photo Credit new home image by hans slegers from Fotolia.com
