Showing posts with label tenant credit check. Show all posts
Showing posts with label tenant credit check. Show all posts

Monday, November 11, 2013

Checking Prospective Tenant’s Credit Standing

Checking Prospective Tenant’s Credit Standing

Majority of the landlords have experienced having to deal with tenants not paying their rent. Additionally, having to evict tenants with tedious and costly eviction proceedings are something landlords wouldn’t want to go through. As a landlord, doing a credit check on the potential tenant before giving him the approval for your rental property is essential. Checking the potential tenant’s credit history will give you a glimpse of his financial standing. Furthermore, will alert you of potential problems which may arise and can also reduce the possibility of you accepting troublesome tenants. 

There are various agencies that provide credit checking services over the internet. Some of these agencies charges per report, others require membership fees. This can be quite expensive especially if you have large number of potential tenants, that is why, some landlords require that the cost of credit check be shouldered in part by the applicant. However, credit checking entails some sort of methodological process to ascertain that the data collected are relevant.

Before proceeding to the credit check, the prospective tenant’s consent must first be obtained by having him sign the required documents. The documentation requirements may vary depending on the area. So, it would be helpful to research on the tenancy laws applicable to determine which documents are required. It is also very critical to get hold of a credit report for the right person, hence, it is best to check the documents thoroughly to make sure that all the details are accurate and correctly spelled.

There are various online credit checking agencies that you can choose from. Some of these agencies charges per report, others require membership fees. This can be quite expensive especially if you have large number of potential tenants, that is why, some landlords require that the cost of credit check be shouldered by the applicant.


The ideal credit report should contain the potential client’s debt history for at least the last five years. Take into consideration how much debt the applicant currently has, and if all debts are timely paid. A potential tenant who has a significant difficulty paying-off past debts or those who have fallen behind his present debts, should be avoided. In some instances, the credit report will reveal little or no data. This could mean that the applicant may be new to the country or he may have other identities that have not yet been tracked, so extra caution should still be exercised.