I am writing this article to educate property owners/managers on tenant collections. I own a collection agency based out of Orlando Florida, and have dealt with thousands of tenants over the years who have went delinquent.
This should help you at least prevent it from happening, and in the end you will probably call me to collect if you do end up running into accounts. Nobody is going to tell you “I am a horrible renter, do not take care of my things, cannot hold a job, have issues paying my bills on time, etc”. You should try and figure out who you are dealing with if you are treating your rental as an investment.
Doing these things will significantly lower the chances of your tenant destroying your property or falling behind on rent.
HOW TO RUN CREDIT & WHY
1. Obtain Authorization to Run Credit
A. PDF – Free Credit Check/Background Check Authorization Form
2. You will be able to see credit score, credit history, and collection accounts.
Keeping this on file for your tenant will also help the collection agency, should you need to collect on past due rent/damages (god forbid).
3. You can base your amount of your deposit
Sometimes it is good for ask for first, last, and a security deposit if the tenant is high risk. Low risk is usually just first month’s rent and security deposit.
WHY YOU SHOULD RUN A BACKGROUND CHECK A HOW
1. Background Checks will show any previous evictions, judgements, rental history, employment, and bankruptcies.
2. Evictions do not show up on credit history.
3. Judgements only show up on credit history if creditor has turned the judgement over to a collection agency.
If you are on this blog because you need help or would like to start protecting yourself from bad renters, click on the link below!