How to run credit checks on tenants
I am a landlord /tenant attorney In New York and I have a particular expertise in the laws . A great tenant screening process is so important when selecting your next tenant. Knowing the right tenant screening questions and doing a thorough tenant background check will save you a lot of headaches down the road. There are many tenant credit screening companies and tenant credit screening services you can use to do a tenant screening credit check.
When we do tenant screening for landlords, we use a tenant screening point system which we developed over the years. Make sure you learn tenant screening 101 so that you can get the best tenant possible for your next rental investment.
But please be careful with pulling someone else’s credit report . Because it should only be done with permission and for a lawful perpose , such as financially screening a prospective tenant.
You will need these things to run credit checks on tenants
|1||Credit report and scores|
|3||Credit request form|
|4||Information about the tenant|
|8||Credit score standard ( optional )|
|9||Confidentiality ( Optional )|
Important steps to run credit checks on tenants
|1||Learn How to interpret credit report properly|
|2||Set a minimum credit score or other standard for acceptable credit|
|3||Get written permission from the person before screening credit|
|4||Get full name , social security number , previous address of the tenant . So that you can identify them to credit report agency .|
|5||Request reports from the three major reporting agencies like – Equifax, Experian, and TransUnion. Some creditors only submit to one agency but, to ensure you have all of the information, you need to get all three reports.|
|6||Pay the fee for viewing the report and credit score. You can shop around for the best price, but if you don’t go directly to the reporting agencies, make sure the company you use is reputable.Credit checks typically cost around $20, but you cancharge the prospective tenant whatever you want.|
|7||Consider a long-term screening service Look into screening services that provide even more background information on your prospective tenants, like criminal background checks, or consider a package deal to save money next time. You’ll be a better landlord with the right information at your fingertips.|
Did You Know Act of Credit Report?
The Federal Fair and Accurate Credit Transactions Act of 2003 allows that every U.S. resident may annually order one copy of their credit report from each of the three major credit bureaus wthout paying a fee.
However, rent laws ussually vary from state to state so you better consult local lawyer before finalising anything.