Landlord credit/reference check
In the past I have always used brokers to rent out the vacant apartments in my building, but I always felt bad about the hefty (15%) broker’s fee the tenants had to pay. Now that Craigslist has made it so easy, I am renting the apt. on my own. My question–how do other landlords run…
In the past I have always used brokers to rent out the vacant apartments in my building, but I always felt bad about the hefty (15%) broker’s fee the tenants had to pay. Now that Craigslist has made it so easy, I am renting the apt. on my own. My question–how do other landlords run credit checks on prospective tenants? Thanks, in advance, for the advice.
ugh. this thread seriously depresses me. i guess im going to be sharing apts for the rest of my life apparently because no one is willing to rent to someone based on good references, steady income and job, and no criminal record. boo.
-riob
I’ve gone the route Kate describes and I have felt comfortable doing it, although I see the risks. When you show the apartment yourself, you get a lot of information just watching people look at the apartment. Do they start noticing all the faults? Do you see them start imagining their life in the apartment and whether it would work? Do they discuss things out loud or whisper to each other a lot? Do they complain a lot about the last apartment or landlord? They may also tell you a lot about their current situation. By the time I get to the point of asking for a credit report, I have checked references, spoken several times with the prospective tenants, and I am already pretty comfortable with them. So far I have not been surprised.
Good luck Cobblekrill. And don’t forget to put “No Fee’ in the ad several times.
In the near future I believe that a tenant background will not matter only they ability to pay. Landlords are going to be cash strapped in a changing economy.
The What
Someday this war is gonna end..
Hi,
Re the poster above who says you can’t go through the big three credit agencies yourself to get a credit report: I have a friend who has the prospective tenant get a copy of their own credit history with Equifax (everyone can get access to their own credit report once a year for free, I believe) and then present the credit report. Now, it sounds like this could be abused — whited out and photocopied or something, unless it’s in electronic form — so I don’t know how safe it is but at least it’s worth knowing about.
I signed up through MrLandlord.com. As an individual owner you need to submit proof of ownership and a few other things to justify why you need a credit report but there is no sign-up fee and there is not a site inspection. For a management company there is. They have sample application forms which I simplified and used.
You need to sign up in advance and snail mail the forms to them but they send you a login and you get the credit reports online.
I agree with the posters above. The past credit history is invaluable in determining a tenant’s future potential as a tenant.
I too use citicredit.net. you will have to prove that you are a landlord with a deed, etc. You will have invaluable information about credit history, legal history and the like.
I can’t tell you the headaches I avoided by renting to people who didn’t have 5 accounts in collections or a history of eviction elsewhere. Stuff the tenants tend to leave out in their applications.
I have asked people point blank, is your credit a problem, and they have responded with a straight face that it is very good. until I checked and found their score to be in the 400’s with numerous collection actions.
Everyone can make mistakes, but having gone through the housing court system numerous times in NYC, I don’t need to spend another 6 months worth of rental income just to realize what a 20 dollar credit check would have told me.
Another tip, watch out for couples who are seeking to rent where one is reluctant to put down information. Usually it’s because one has already run their credit into the ground and the other sees their credit as a clean slate ready to run into the ground as well.
And another tip,watch out for those with no credit history whatsoever. it may indicate a name change or fake ID or something of that nature.
Cobblekill
None of the supposed advice thus posted is really that helpful, and you cannot legally go directly into any of the big three reporting agencies directly to run a credit report.
You must use a front end vendor like Tenant Verification Service (www.tvs.com) to run credit check for you. Also you need to have them, or any other group that puts a credit report into your hands do a site inspection to make sure the report will be safe from theft. A locking file cabinet in a home office with a lock on it’s door qualifies. This will take about a week, so plan ahead.
In my experience past credit history is the greatest indicator of the future payment history.
rob, I think there’s indeed a difference btw someone with NO credit and someone with BAD credit, which you’re not making clear. Bit if someone can’t pay their credit cards on time, they’re probably not on time with the rent either.
I feel ya on the gurantors, tho. Kinda sucks being told you can’t get a place cuz your parents are broke. All the more reason for young people in that position to make sure they establish credit and act financially responsible.
As a landlord I rented my apts on Craigslist. I use http://www.citicredit.net They allow the owners to run credit and background checks. Worked fine for me.