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.
- Difficulty:
- Moderate
Instructions
Things You'll Need
- Financial Calculator
- Credit Reports
- Rental Applications
- Notebooks
- Personal Organizers
- Writing Pens
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1
Require prospective tenants to complete written rental applications with their credit history, employment status and names of former landlords.
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2
Consider charging rental application fees to cover the costs of running credit checks on prospective tenants.
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3
Verify the applicant's employment status and bank information by contacting employers and financial institutions.
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4
Contact former landlords to check on the applicant's payment record as a tenant.
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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.
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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.
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1
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.
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Comments
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Girlpower973, While your statement might be true dealing directly with Trans Union and Equifax there are plenty of middlemen web sites that will do it for you for 15 to 20 bucks.
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Total rip off.
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total rip off.
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Great article, really helpful information.
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farmgirl1961
Mar 31, 2009
We have found that a reasonable fee to check credit/criminal records is a good way to screen out bad renters. If someone isn't willing to pay a reasonable fee, they may very likely know that they won't qualify anyway. Landlords have to pay for the reports and must pass along the cost to the potential renter. Landlords can't afford to run credit/criminal reports on all those who will do it if it is FREE and take their chances.
