How to Run Credit Checks on Prospective Tenants

Find out about the financial responsibility and history of prospective tenants by running credit checks on rental applicants. Follow these few steps to look into your potential tenants' financial history.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Financial Calculator
• Credit Reports
• Rental Applications
• Notebooks
• Personal Organizers
• Writing Pens

1. Require prospective tenants to complete written rental applications with their credit history, employment status and names of former landlords.
2. Consider charging rental application fees to cover the costs of running credit checks on prospective tenants.
3. Verify the applicant's employment status and bank information by contacting employers and financial institutions.
4. Contact former landlords to check on the applicant's payment record as a tenant.
5. Order credit reports on applicants from a major credit reporting company such as Equifax or Trans Union to verify their credit history and possible evictions or convictions.
6. Contact an agency that specializes in screening tenants, such as National Tenant Network, to receive reports on the applicant's payment history as a tenant.

Tips & Warnings

• A prospective tenant's credit history is a good indication of future ability to assume financial responsibility.
• Avoid discrimination complaints by selecting applicants based on their financial history rather than gender, race or other discriminatory factors.