Landlord Credit Check Tips – How To Screen Your Tenants?
Tips on a landlord credit check can help you screen your tenants more effectively because there’s no worse nightmare for a landlord than a bad tenant. Many landlords insist on a landlord background check for every tenant that will live in the unit, to ensure that each person does not have a violent or criminal background. This can help you weed out undesirable tenants, and protect you from issues surrounding drug use or dealing from one of your properties. A landlord credit check can show you a lot about a prospective tenant, including whether or not they pay their bills on time.
Real estate investing can be profitable when handled correctly, and the number one mistake made by landlords and investors is not screening tenants thoroughly before renting a unit. Performing a landlord credit check will help you determine whether the tenant has ever been evicted from a home, lost a home to foreclosure, filed for bankruptcy, or makes it a habit to pay off bills past the due date. A credit report for landlords will also identify past residences and addresses, and this can be a sign of a problem tenant. If a tenant moves frequently this indicates an issue, and the tenant should probably avoided.
Use a quality landlord lease agreement, one that identifies all of the variables that could cause problems. Make each prospective tenant fully complete a rental application, and then take the time to verify the information and references provided. A landlord credit check can help you find stable tenants who are ideal to rent to, so that the rent is paid on time and no problems are caused. If you have a landlord insurance policy you may need to ask additional questions in the rental application, to ensure that your policy will cover certain situations. Always have applicants provide a work history, driver’s license number, and social security number. You can also look up each applicant online, to see if any YouTube or Facebook accounts appear for the individual.