Items To Know When Requiring A Credit Check On Prospective Tenants


If you are a landlord then you would have to be crazy not to use credit checks to vet tenants. You may just want to call up a few of their references, like old landlords or their employer to ask about them, or maybe you would rather pay a company to do this for you.

You do this because it makes sense to find out what kind of financial history they have. By checking you are likely to save yourself a world of hassle later on.

Rental properties require applicants to disclose on their rental application their full name, current address, social security number and date of birth. These are basic information needed to conduct a credit check.

When performing a credit check, the landlord has to inform the prospective tenant that it is going to be done. Usually, it is disclosed on the application with an area where the prospective tenant will sign as indication of consent to the credit check.

If not, then you should get this consent on another form, as it is vital that you have permission. No matter how you get it, make sure you do.

Quite frequently, due to time constraints, most property owners will hire a specialist company to do the check. This can be costly, and often the property owner will pass this cost on to the potential tenant.

The agencies that provide credit check services either charge per report or require a membership fee that covers everything. Aside from the standard credit report, these agencies look into and provide employment history, criminal history, rental payment history, evictions, bankruptcies, and other relevant information.

When a person doesn’t meet the landlord’s requirements, the landlord must notify in writing that they did not meet requirements. It is not required to disclose any details, but it must mention that the decision was made based on the credit check. This must be done in order to meet the terms of the Fair Credit Reporting Act.

This individual has been contributing articles with respect to personal finance for the past seven years. Additionally, this writer enjoys providing knowledge with respect to New York City neighborhoods, including Chinatown rentals along with Lincoln Center apartments.

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