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September 8, 2009
Credit Check for Tenants?
Hey small landlords. Do you do a credit check on your prospective tenants, and if so, what agency do you use (and what do you like/dislike about them?).
Comments
Credit checks for tenants? We need credit checks for landlords! Anyone recieving government assistance to finance "their" homes and is charging high rents should be black listed. When are landlords going to start to pay taxes on their rental income?
Posted by: hannible at September 7, 2009 10:32 AM
You may want to check out this site since they actually run credit checks on tenants beforehand and then you can decide whether or not you want to work with them. You'll ultimately have to run your own credit check as well but the renters here have be verified. Just a thought to ultimately cut down costs and not run a check on every renter who comes to you.
Posted by: realestate2point0 at September 7, 2009 11:08 AM
I have a friend who can run credit checks for me & I do it for every prospective renter. I pay him about $20 for each to help him cover costs.
Posted by: Arkady at September 7, 2009 4:32 PM
I've used this site with good results:
https://www.1-background-checks.com/
Posted by: christopher at September 7, 2009 6:15 PM
check out creditfacts.com
It's local and if you have any questions about the report, they're happy to go over it with you on the phone.
Posted by: IronBalls at September 7, 2009 6:57 PM
ones credit score is not indicative of whether they will make a good tenant or not. and oftentimes someone with a really bad score make BETTER tenants because they have a lot of hurdles to overcome.
*rob*
Posted by: Butterfly at September 8, 2009 9:57 AM
I once was allowing a tenant to take on a roommate. She advertised it on C's list as needing no credit check. (Why in God's name??!!) She found someone she really liked and wanted, when I told him we did run credit checks he had no problem with that but didn't expect to have to pay for it. When I told him he needed to give me the money before running it, his whole demeanor changed, he got hostile and I realized it wasn't going well. Long story short. He had recently declared bankruptcy and then got very hostile with the tenant. She forwarded me some of his emails because he scared her. On the other hand, I've also once rented to a woman who had declared bankruptcy because of medical bills. She was upfront about it, a great tenant, very quiet also paid her rent on time. You need to feel out your tenants and a credit check helps, but in the end, I also go on instinct.
Posted by: Brooklynnative at September 8, 2009 10:16 AM
I rented out 2 apartments last year through a major Realtor and this is what happened: the tenants they presented as having a good credit history were a real pain in the ass and slobs. When they left in June I was relieved to see them go. The other tenants, who I almost didn't rent to becasue their scores were questionable, are the best and nicest tenants I've ever had. Other tenants who I've rented to directly didn't get a credit check. I just had a very frank conversation with them about expectations, etc. Ditto Brooklynnative -- you kind of have to use your gut instincts. Scores only tell part of the story.
Posted by: herkimermaid at September 8, 2009 10:29 AM
I have 6 apartments and I always do a credit check, as well as call references and employers. Based on all the info, I determine whether to accept an applicant or not. On several occasions I've rented to people with "crap" FICO scores, and they've been wonderful, long-term tenants. Right out of college, I was there too and I'm really looking for a responsible, pleasant tenant, not a number.
That all said, I registered with NTN (National Tenants Network) which allows me to get credit reports online immediately, for a great price. 800.228.0989 http://www.ntnonline.com/ I also recently read about http://citicredit.net/ and bookmarked them, but I haven't used them.
Posted by: BKRed at September 8, 2009 10:33 AM
I have never run a credit check...but I advertise on my own, don't use realtor, show the apt. and talk and get feel from prospects...as they are to live in same house as me.
You get feel of type of person they are by meeting them.
Posted by: Petebklyn at September 8, 2009 10:37 AM
Some of the postings here are F@CKIN insane. This is the same board the blasted the banks for being loose on their credit approvals yet would not hold the same standard for a small owner. like WTF!!!!!????
Of course credit score is not the end all be all in regards to the viability of a potential tenant. But to say "because they have a lot of hurdles to overcome" is so delusional.
Hey Rob, my friend is $10,000 in debt because of she is a shopaholic. You want to lend her money because she is obviously needs to overcome more things than a person not in debt.
Holy sh!T Rob. Where do you come up with this logic!!!!???
Posted by: crimsonson at September 8, 2009 11:51 AM
I run credit reports..I think they are important but as some others have said they are not the entire story. Because of the industry I am in (I work in credit) ...I can run them for free but I did see a very reasonable service online on mrlandlord.com that you might want to try out. http://mrlandlord.com/html/creditfaq.html ..I also verify employment and I do call and check with their previous landlord.
Posted by: scarter at September 8, 2009 12:47 PM
scarter, could you run my credit for me? is that a weird thing to ask a stranger?
*rob*
Posted by: Butterfly at September 8, 2009 12:53 PM
Rob, you can run your own credit report. (It's a different story when a LL needs an applicant's information and consent to run their credit report.) The Fair Credit Reporting Act guarantees access to a free credit report every 12 months from each of the three nationwide reporting agencies (Experian, Equifax, and TransUnion).
For more information, see: http://www.ftc.gov/freereports
Credit reports are NOT the same as a FICO score: http://www.myfico.com/Default.aspx
You might also find the articles and programs archived on this website/radio program useful: http://marketplace.publicradio.org/episodes/show_rundown.php
Posted by: vinca at September 8, 2009 1:16 PM
www.e-renter.com is the best I have found. You can charge your tenants the fee and they are simple to work with.
Posted by: Fredster at September 8, 2009 2:07 PM
charging tenants the fee for a credit check is BEYOND riff-raff. not to mention gauche
*rob*
Posted by: Butterfly at September 8, 2009 3:23 PM
Thanks Vinca... I was gonna tell Rob the same thing.. I use myfico to run my own as well. When a company runs ur report it shows up on your credit report as an inquiry and lowers ur score (not by much but every lil bit helps-smile. When you do myfico and other sites as Vinca suggested it's what's called a "soft" pull and doesn't work against you.
Posted by: scarter at September 8, 2009 3:37 PM
"charging tenants the fee for a credit check is BEYOND riff-raff. not to mention gauche"
It's worked for me as a landlord, and I'm neither gauche nor riff raff. And, if the prospective tenant doesn't like it, they can simply go look for an apartment somewhere else.
Posted by: East New York at September 8, 2009 3:39 PM
Rob, I don't think it's out of order to charge tenants for running a report. It's usually not a free service to the landlord and can become quite expensive if we don't charge. Because I don't pay though I usually don't charge people to run their credit but if I incur other service charges... I will charge for those.
Posted by: scarter at September 8, 2009 3:40 PM
oh wait duh nevermind. it just occurred to me that some landlords are doing multiple credit reports for an apartment so it probably does add up.. sometimes i can be a lil outta touch with reality
*rob*
Posted by: Butterfly at September 8, 2009 3:47 PM
I've rented twice in New York, once in Manhattan, once in Queens. Both times the broker helped me put together a landlord package that included multiple bank statements, employment letter, SS number, references, the works. I had to pay $80 on both occasions for the broker/landlord to run my credit. All management companies do this and it's good practice for individual landlords. If I was renting out an apartment I would consider all aspects of the package. Bankruptcy due to medical bills is not the same as bankruptcy due to profligacy, 30% of all cancer patients in the US end up bankrupt. Credit score is important, not the be all and end all though. I would be just as interested in the housing court reports.
Posted by: bohuma at September 9, 2009 3:17 PM
I've looked at a lot of the sites people have suggested, however, they ALL seem to have really extensive documentation needed in order to join up. I understand that there are laws in place, and that's fine, but I need to rent an apartment in a week, and can't wait for all this processing!
Does anybody have a suggestion for a way to do all this oneself?
Posted by: greenpointhouse at September 9, 2009 9:48 PM
FWIW, I'd get hostile, too, if I responded to an ad that said "no credit check" and then someone wanted me to pay for a credit check. Smacks of bait-and-switch, even if that wasn't your intention.
Our landlord never asked for a credit check but he did call my employer to confirm that I really work there. You can also ask for past landlord references.
Posted by: serpentor at September 10, 2009 3:22 PM
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