People who give out their properties on rent need to know that their property is going in the right hands. Before renting out any type of property to a potential tenant, one of the best things to do is to run a detailed tenant background and credit check on them. Most landlords don't find it that important but it's something which shouldn't be avoided at any cost.
After taking the permission of the prospective tenant, the landlord can perform a background check and the latter can verify a number of things like income proof, rent history, and credit rating. The applicant's credit report can give out detailed information which will help the landlord decide whether or not the tenant would be able to pay the rent on time.
How to Run a Credit Card Check on Prospective Tenants
Before the landlord can begin the procedure of screening the tenant's credit card report, he/she should require a written application from the tenant. The written application will include the Social Security Number which is essential to run a credit check. Never forget to take the applicant's permission before running a credit check. This permission can also be included as a clause written in the agreement and the applicant has to sign it.
- The landlord should accumulate all the financial information that he/she can get about the tenant. The tenant should also submit his bank account details and all the information regarding his/her employment to prove that he/she has a source of income so that there would be no problem regarding the payment of rent every month.
- The landowner must verify the information provided by the tenant personally. There are many credit companies who perform credit checks. They demand a small fee but give excellent services. Confirm that the financial information given by the tenant is accurate and if it turns up false, then there's no need to consider that tenant.
- There are various tenant screening agencies such as Tenant Verification Service, AAA Credit Reporting Services and Experian that can get the job of screening the tenant for the landlord. Depending on the fees, these agencies can also provide the landlord with additional information other than credit card reports.
- There's a chance that the credit report forwarded to the landlord might have mistakes. The landlord can get in touch with the tenant and clarify all doubts. There have been cases when the tenant is considered as a faulty debtor with no fault of his/her. In such cases, it's better to give the tenant a chance to explain his/her state.
- Not many landlords do this, but it's considered good manners to explain to the tenant why he/she was not selected for the apartment or property. There's no need of fixing a personal meeting, a mail or a letter would do the job. The landlord should also mention the various reasons explaining the rejection.
Taking help of a screening agency can make the whole procedure of tenant screening pretty easy as it allows the landlord to interview more applicants in the given time. A credit report is not the only thing that should be checked before renting out a place. A complete check is extremely necessary in which other important details such as family, criminal history and employment proof also come out. Anyone can have financial problems and a bad credit report doesn't mean that the applicant is a bad soul. He/she may have just gone through a bad phase and it's not ethical to judge a person looking at his/her finances.