Credit Check & Background Check Companies
Even if it takes you a little longer to rent your property, it is wise to run the proper tenant screenings to reduce risk. Many states are tenant friendly, and it could take months to just get the tenant out of your property. Add damages, and fee to rent to a new tenant and your investment could spiral into oblivion.
Knowing patterns of people and verifying them with credible sources is what any experienced landlord/property manager would tell you. This doesn’t necessarily mean you do not have to rent to a sub-par credit tenant; you could also raise the security deposit to reduce risk.
Pulling A Tenants Credit Report
Credit checks are running a financial background of the potential tenant. This is payment history, negative credit hits, length of credit, etc. This is useful because it takes hard work and maintaining to keep a high credit score. Usually, these people are financially educated or simply live within their means. Lower credit score could simply mean; not enough credit history, or could also mean terrible track record for missing payments and/or not paying obligations.
Tenant Background Checks
Background checks for tenants are commonly used to find criminal record, employment history, and verify reference/employment information. These reports also show previous address for tenants and how long they resided at that address, which is also a useful tool.
How to legally run a background and credit check on a potential renter?
One cannot simply run a credit report/background check on an individual without written consent prior to the report being ran. Below is an example of verbiage that could be used to check a potential tenant’s history.
CONSENT TO PERFORM CREDIT, BACKGROUND AND REFERENCE CHECKS
I, (rental applicant), authorize and permit (rental owner / manager) to perform background checks and obtain information about me from credit reporting agencies, employers, current and previous landlords, and personal/professional references.
I also authorize and give permission for all parties listed to disclose any information requested about me to the rental owner or manager stated above.
I further authorize and permit the rental owner or manager to obtain updated information annually and on future occasions for rental renewal consideration and for collection purposes should that be deemed necessary.
Rental Applicant (signature) __________________________________________
Date _______________________ Phone ________________________________
Social Security Number _______________________________________________
Nexum Group Inc can get your apartment complex, property management company, or individual home set up with background/credit checks. Nexum Group Inc is a commercial and consumer collection agency, so we know how to spot a red flag. Below is a link to our site if you would like to speak to an account manager.
Thanks for reading!