Landlord Credit Check Guidelines

Landlord Credit Check Guidelines

All our tenants undergo a reference check that is extremely comprehensive, this includes a thorough credit check, references from employees and previous landlord references. One months rent is paid along with a months rent as a deposit, before the ... Manchester Landlords Wanted

To run credit checks on prospective tenants, first charge the credit check fee, contact the credit bureau and run a credit check to see if the tenant qualifies to rent. Run credit checks before renting out an apartment or home withadvice from an experienced property manager and landlord in this free video on rental property. Expert: Damon Thompson Bio: Damon Thompson owns three rental properties in Detroit, Mich. and has owned up to seven rental properties at once for more than 15 years. Filmmaker: Lynell Doyle

mortgagecalculator-tips.blogspot.com Rental Property Advice : How to Run Credit Checks on Prospective Tenants

A landlord credit check is a means used by landlords to gauge the type and amount of risk a potential tenant maybe. In other words credit checks are used to determine the likelihood of a tenant being able to pay rent in full and on time. There is of course no way to say for sure but a landlord credit check and other background checks work on the assumption that the future action of a natural or juridical person, to a certain extent, can be determined by past action.

Credit Check for Landlords: Subject

The subject of a tenant credit check maybe a natural or juridical person. The former are entities that are deemed creations of the state such as corporations, partnerships, agencies and trust. The latter are individual persons (human beings). Tip - always make sure to ask who the named tenant will be.

Will it be a corporation, business entity, a person, persons, etc.? This is because a corporation or other juridical entities have a separate credit report otherwise known as the business credit report and that the person named as tenant will be the one a landlord goes after first. For example, if the tenant named is Corporation ABC made up of Mr. A, Mr. B and Mr. C. then the correct credit check would be for the corporation not the individuals who make up the corporation. Why? Simple, because under the law a corporation is separate and distinct from its members and as a general rule the liability of the corporation does not extend to the individual owners.

Credit Check for Landlords: Object

The object of a landlord credit check is to determine the likelihood of a potential tenant to pay in full and on time.

A credit check or inquiry is one that provides the landlord with information relative to past financial transactions of the applicant on credit. By obtaining a credit report the landlord is able to determine the:  Amount of outstanding debt on credit Past and/or current bankruptcy filing The number of defaults on payment (i.e. credit card defaults) Wage garnishments

In other words a landlord is able to determine the credit history and payment history of the potential tenant. This information can be translated into:

An approval A denial An approval but subject to higher rental, deposits, advance payment to offset risk

Credit Check for Landlords: How To

A tenant credit check is made to a credit reporting agency of choice. There are of course 3 or 4 major credit reporting agencies right now and the report may or may not come with the score that can have for an additional fee. It is up to the landlord to determine:

What credit reporting agencies to ask To get more than one credit report To avail of the credit score/scores

However, it is important to note that a tenant credit check can only be had if the landlord requests a written authorization letter from the applicant for a credit check. Remember, ask for separate authorizations for every person of legal age to occupy the property.

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