How to Check a Tenant's Credit Rating
As a landlord, acquiring a possible renter ’s credit rating is one of the most important aspects of the eligibility process. When the potential tenant has a very low credit rating, you know that he might not always be timely with his payments. About leasing to him However if he has an exceptional credit rating it is possible to feel better. Not everyone can get amp, another individual &;rsquo;s credit details. You must comply with stringent regulations to acquire your renter ’s credit rating.
Get the possible renter ’s written consent to check his credit rating before you run a credit rating. Even though this information is pertinent to you as a landlord, you might be acting illegally in the event that you don’t get the renter ’s consent. The Federal Trade Commission clarifies that people may not check each others' credit, however landlords, employers, creditors and insurers may. To be able to protect yourself, make sure that your potential tenant signs and dates a consent form, stating that he lets you check his credit rating. Get a copy of this form from landlord books on your local library or online at authorized sites, or draft one yourself.
Collect the renter ’s complete name, social security number, birth date and previous speeches. These pieces of information are all necessary when assessing the renter ’s credit rating. Make sure that you keep all this private data in a safe place like a safe.
Use a tenant verification service online to learn your potential tenant’s credit rating. The All Business website clarifies that there are a lot of different tenant verification services available online. Most charge anywhere from $50 to $100 to check your renter ’s credit, though you may be able to have a discount for a bulk rate.
Supply copies of your possession of the home, social security and driver’s license to the tenant verification service. Most renter verification providers require this information from you in order to demonstrate that you are really a landlord. You might have to fax or email copies of those documents to the company.
Make a final decision based on the renter ’s credit rating and be prepared to provide legal forms in the case of a refusal. Decide on a chalk stage –a credit rating that is too low for you to rent out to–so that you maintain an even playing field for everyone and do not discriminate. Should you choose to reject someone based on his credit, give him a copy of his credit report along with a form stating the reason for the refusal.