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?).
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?).
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
scarter, could you run my credit for me? is that a weird thing to ask a stranger?
*rob*
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.
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!!!!???
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.
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.
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.
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.
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*