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The best way to Use Credit Reports to Screen Tenants
Do you understand how important a credit file can be? Do you realize the value of working not only a credit file but also other types of history reviews so that you can understand your prospective client's situation? The following article covers this and the importance of understanding why it's important when studying and choosing a tenant for your rental property.
Tampa Property Manager - The credit report is a very important element in the background verification of a tenant, but is it the only component? We could not advocate doing a background verify on a renter simply based on credit. In addition to credit, you want to do nationwide sex offender check, a nationwide criminal background check, and also a nationwide foreclosure search. You may want to verify their revenue to make sure they make enough cash to cover the rent. And you may want to have referrals from their two past landlords. These, as well as credit, represent a really thorough back ground check.
Within that history check, credit is really important. What a credit history can let you know about a potential consumer is several things. The first thing, through the credit rating, it may tell you their attitude towards credit and that is really important since you need to understand they pay their bills on time. Do they have collections from apartment complexes or preceding landlords? Which could mean that that can occur to-you and they stiffed a prior landlord. So we do not advise renting to somebody with collections. Additionally, search for any outstanding utility bills. Unpaid utility expenses appear to get steady with delinquent rents. Try to find such things as bankruptcy. They can take your rent and include it in the bankruptcy, in the event the individual is now in-a bankruptcy and you will not be paid your hire. Don't rent to someone who's now in insolvency.
Lastly, a real important factor a credit report can tell you is are they who they say they are? In these days of identification theft and folks faking who they are, a credit file can be very useful. If you can compare the social security amount, the driver's permit, their prior address, their title and their birth date, you are able to check their id and if they are who they say they are.
