What is needed for a Landlord Credit Check?

A thorough landlord credit check is always needed when renting out a property. There are several steps to take to make sure that you are doing everything in compliance with federal law. You also want to know that you are getting through and legitimate results from the landlord credit check.

Your first step should usually be to contact a background screening company who conducts Landlord credit checks. Make sure they are better business bureau certified, ask for samples of their reports, and compare pricing. Since a landlord credit check involves the disclosure of sensitive information about the applicant, you can expect that setting up an account to do landlord credit checks will require you provide identifying information on yourself. Account set up may vary by company but in general you may have to provide: your identification, prove that you are a property owner and depending on how thorough you want the results, a site inspection may apply.

Pricing on landlord credit checks varies depending on the reports purchased so ask for descriptions and samples. Also, keep in mind that not all companies have a service or membership fee so do thorough research among companies. Just because a company has a membership fee does not meant that they offer better information.

Next step is to get all of the appropriate information from your applicant to conduct the landlord credit check. First and foremost, you MUST obtain signed authorization from the applicant stating that they are authorizing a background/landlord credit check. Double check your rental application to make sure the disclosure statement is included along with a section for them to sign. What you need from the applicant varies on the services you wish to purchase. But even the most basic screening should required some or all of the following: full legal name, social security number, current address, driver’s license number, date of birth (to be used only for checking a criminal record) You may also want to obtain contact number to their current employer so that you may conduct a verbal employment verification. It is good practice to contact current or previous landlords for a reference so be sure to request contact numbers for them.

You should also prepare yourself with tools to understand the results of the landlord credit check so that you can make an informed decision. Keep in mind that every time a landlord credit check is conducted, you must notify the applicant in writing if you have decided to decline their application.

If you have any questions e-mail us at info@credasys.com or call 714.828.5769