Not every landlord realizes how big of a difference it can make to have trustworthy tenants. In fact, an official government agency in the United Kingdom sites tenancy failure as a major problem in the industry!
But what tools are out there to solve this problem? Checking your tenants’ credit scores is one of the most powerful ways to make sure that you have trustworthy tenants.
Read on to learn everything you need to know about how to check tenant credit histories!
Why Should I Check Tenant Credit Scores?
Untrustworthy tenants are not just a problem, they are the beginning of many, many problems. The law of 80-20 states that 80% of the problems in a system usually come from just 20% of the elements in the system.
In this case, just 20% of tenants cause 80% or more of all the trouble that a landlord might face. The thing is, the majority of tenants are naturally trustworthy. If you could find a way to have 90% trustworthy tenants instead of just 80%, you could cut your tenant management problems in half!
How to Run a Credit Check on a Tenant
If you have ever asked “How do I check my tenants’ credit?”, this is your answer.
The first thing you’ll need to do in the tenant credit check service process is gather some information. Along with your tenant’s full name, you will need their social security number and date of birth. While not always necessary, knowing their addresses for the last 2 years or longer can also help.
Make sure that you get your tenant’s legal name, and not a nickname. On top of that, it can be helpful to get contact information for their current employer and current landlord.
The next thing you will need is proof that you are a legitimate landlord. You can use your own identification as well as a letter in the mail proving your current address. You will also need proof that you own the rental property in question, like a deed.
How Much Is a Credit Check for a Tenant?
Once you provide all of this information to a credit check service, you will need to pay a fee for each tenant you are inquiring about. Of course, different services charge different amounts. In most cases, that fee will be somewhere between $25 and $70.
In order to offset this fee, many landlords will charge tenants the fee amount to cover the credit check. You can also try only charging tenants if the credit check comes back positive.
Also, make use of services that offer landlords credit report.
Check Tenant Credit History to Protect Yourself from Risk
We hope that you learned something helpful about how to check tenant credit history. If you are looking for ways to protect your bottom line, this is one of the best!
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