9/21/2012
 

Tenant Screening Things to Do Landlord Credit Check

As a property owner, it is a good investment to rent your properties to others rather than sell them. The advantage of rentals is that you will have a steady income and can even increase the rent albeit according to fair housing laws. When selling, your property will likely sell at lower price tag especially when the market is unstable. And if youíre just afraid you will rent to someone unreliable Ė worse, with criminal records Ė you donít need to. There are now several ways to screen potential tenants. You can always conduct tenant screening procedures.

Whether you want to conduct the screening yourself or have others do them for you, valuable data can be obtained; which could be your basis on signing those rental contracts. With tenant screening, you can get tenant information like credit history, employment records and criminal records. Aside from the array of services, itís also easy to find a company that offers online tenant screening services.

Want to make sure a potential tenant has the capacity to pay the rent on time and regularly? Then, what you need is to get a landlord credit check. With this service, youíd be able to get your hands on comprehensive tenant credit report Ė from the personís financial capabilities to credit history and in-depth financial backgrounds. But, itís really easy to credit reference future tenants. Here are some tips:

Your Guide to Landlord Credit Check When Screening Tenants

So, what are the things that you need to keep in mind when doing landlord credit check as you screen your tenants? First, you need to ask for employerís reference. Donít just accept a letter or certificate of employment from a future tenant. Conduct further research to know the financial stability of the company as well as the status of the employee. When the potential tenantís employment background is secure, it is also safe to assume that he or she will be financially capable to rent your unit.

You can also do some referencing from previous landlords. Although this is not a very stable reference, it will still help you have information about the tenantís records from previous tenancies. Bad tenancy history is a tell-tale sign that you might also encounter problems with him or her in the future. But, people change so there might be some changes with that regard; therefore, it is advisable to conduct previous tenancy records with other referencing procedures.

Asking for a guarantor is also a way to ensure that you will receive regular payment and your tenant wonít run away without paying whatís due. In other words, you will have protection in case the tenant canít pay his or her rents. However, you must be within reasons for asking your potential tenants to have guarantors. You can freely ask for a guarantor if the tenant is unemployed or donít have stable job.

There are also companies offering rent guarantee and income protection. You can ask potential tenants to pay the small fee as part of your tenancy agreement. Other steps that you can do to protect your income is to ask for advance rents and deposits.

 





 

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