Every landlord dreams of the ideal tenant who pays in full and on time and takes care of the rental property as if it was their own. Who wouldn’t, considering the fact that a rental property whether it be a house and lot, apartment or condominium unit is a substantial investment. This article will provide tips and techniques a landlord can use such as a credit check to ensure that the risk involved in renting out a property in terms of payment and damage to property is minimized.

Credit Check for Landlords: How it is Done

A landlord credit check can be done provided the landlord requests from the tenant/applicant a written permission to run a tenant credit check. The request should be made together with the full name, 2 of the most recent addresses, date of birth and social security number of the tenant applicant. A common problem landlords encounter is the hesitance of the applicant to provide the written permission for the tenant credit check as well as personal information. This is understandable since the same, especially the social security number is very confidential. What the landlord can do is to request the applicant tenant to produce a copy of his or her free annual credit reports and demand it be shown. Remember the credit reports need to be less than 6 months old from the time of presentation. Therefore an applicant tenant who wants to expedite the process should bring a copy of his or her credit reports. Preferably from the top three credit reporting agencies Experian, Equifax, TransUnion.

Credit Check for Landlords: Reading Thru the Report

You, the landlord have the reports, now what? You read thru the reports and determine how much of a risk the tenant is in terms of ability and willingness to pay on time and in full. Make sure you have the credit report of the applicant who will be named tenant. If the named tenant will be multiple persons ask for separate reports, if the named tenant is a juridical person or a business entity or organization then ask for the report of the same. The first thing you do is determine if the credit report is the applicant’s own. Read thru the personal information area and look closely at the first name, middle name or initial and last name. It has to tally with the valid identification card or registration card. Double-check the social security number or the business tax identification number. Next go to the report proper and look at the amount of debt overdue and demandable. Then go to the credit and payment history section to determine the propensity of the applicant to pay on time and in full. The other sections of the report should also be read. Take special note of pending cases, judgments, bankruptcy filing, and wage garnishments when conducting a tenant credit check.

Credit Check for Landlords: Decision Making

Landlord credit checks can be a basis for the denial, approval and even the rate of the rent as well as any advance payments and deposits. However, a landlord must bear in mind to always give a written report of the denial and to state the fact, if applicable, that the denial was in part or in full based on the credit report obtained from the landlord credit check .

Are you looking for more information regarding landlord credit check ? Visit http://www.creditcheckforlandlords.org/ today .

Are you looking for more information regarding landlord credit check ? Visit http://www.creditcheckforlandlords.org/ today .

Author Bio: Are you looking for more information regarding landlord credit check ? Visit http://www.creditcheckforlandlords.org/ today .

Category: Finances
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