Check Credit Report

Check credit report is a very important idea in selecting the best renter for your rental. When selecting the right applicant, be sure to have pre-established guidelines to what type of credit you are looking for. More importantly, what you are willing to accept as the resident of your rental property.

When landlords think of checking someone's background, the first metric that comes to mind is check their credit report. And with good reason! The credit report has a wealth of information, giving you an extensive picture of the applicant's financial history. First, it can give you a history of the payments they've made on their credit cards and other loans. This can give you a good indication if they'll pay their bills on time. It can also show if there are a lot of recent debt expenditures, which can be a red flag about whether they are heading for financial trouble. The legal history is another section with helpful information. It can show whether they have judgments or liens against them, giving another data point about whether they can be trusted to pay their bills in the future.

When you are ready to check credit report on your new applicant, be sure to get written permission to perform the check credit report on them. Also be sure to save the rental application for 3 years. It is a good idea to keep notes on why you didn't rent to someone in case later you are audited.