We follow pretty much the same procedure.
By RECENT, we not concerned with hospital, or other debts incurred 2+ yrs ago, or perhaps some ‘rough times’ during a family breakup or job change.
However, if we see a continued pattern of irresponsibility, we don’t rent to them… ie consumer debt they are behind in, new car loans, etc.
Carol
We run a credit, criminal background and a previous tenancy/eviction check on each prospective tenant. It is very worthwhile.
You may also want to consider asking the applicant to pay for these checks as a money saver to you. If they have bad history and have to pay for the background checks, they will more than likely withdraw their application. Some folks don’t believe you’ll run the check and it can be a waste of money.
Re: Credit check for renters? - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on March 23, 1999 at 10:24:55:
I have several rental properties, and I never rent to anyone without a credit check. If you find the right credit bureau, they will include a dispossessory (eviction) history. This can be invaluable in telling you if these people are professional deadbeats. I use a company called National Tenant Network. Each full report is about $15, but you may be able to get it cheaper somewhere else. National Tenant has a one time sign up charge (about $50), and you do not need any qualifications or pay a monthly service charge. I only pay for the reports I request. These reports can also act as a “lie detector”. I always ask my tenants about their credit report. If the report and their version differ greatly, or they outright lie about the contents of their report, I don’t rent to them.
With the lower income tenants it is safe to say a credit check will show some problems, but here is what we look for:
Recent history of judgements or payment obligations not being met. Recent is the key word
Run a check for evictions and look for a pattern. We have found that a tenant with eviction history has the court system down thus costing you delays in removal.
Arrest record. The question is are they a potential manufacturer of Meth, Marijuana, or anything that is going to reduce the value of your property.
We have had EXCELLENT tenants in most of our properties but the few (2) that we did not do the full check on are the ones that cost us the most. I have seen a years cash flow go out the door in a month because I was lax in my screening.
Pat
I use a local company that can cover NJ. I’m not sure if they partner with another larger company to cover the US. Accurate Information is the company, they are located in New Brunswick, NJ.
We look at the most recent 2 years and look for a pattern such as evictions every time they move even though it is a 2 year pattern. Actually we have made it policy not to rent to any tenant that has been evicted in the past if the eviction went the full term.
Pat