I'm a reluctant landlord currently (two small rental houses) and have had a string of bad tenants lately. I'm tired of going through the eviction process and vow to do a better screening job of potential renters upfront.
One idea along those lines is to run a credit check on prospective tenants. But I don't know how to do that. Is there a paid service I can use? I had the folks I'm interviewing currently fill out an credit app and sign it, but don't know what to do next.
Does anyone have any suggestions and/or experience in this arena? I would appreciate it.
There are businesses out there who will run credit, license etc for a fee.
Get a list of referees and actually check them
Demand a high security deposit
I assume you just contact the credit agencies. Its going to cost you of course.
A lot of people also check with the state law enforcement agency. In SC its called SLED. It isn't perfect and or course it won't find anything a person did out of state. Most large counties have government web sites where you can check the local court systems. That is free.
aussiesmg wrote:
1. There are businesses out there who will run credit, license etc for a fee.
2. Get a list of referees and actually check them
3. Demand a high security deposit
I do 2 and 3 already. I'm hoping adding #1 will help, but that's the part I need assistance with. I've never purchased that service and am unsure who to go to.
Thanks for the suggestions!
Your property probably isn't this type and you said you want to avoid evictions, but the really crappy stuff around here rents by the week. They can be evicted a lot faster.
spitfirebill wrote:
I assume you just contact the credit agencies. Its going to cost you of course.
A lot of people also check with the state law enforcement agency. In SC its called SLED. It isn't perfect and or course it won't find anything a person did out of state. Most large counties have government web sites where you can check the local court systems. That is free.
Can I just go to Equifax, etc and buy a credit check from them?
Luckily, my company works with public records so I can at least see recorded judgments. That isn't exactly law enforcement info, but close.
spitfirebill wrote:
Your property probably isn't this type and you said you want to avoid evictions, but the really crappy stuff around here rents by the week. They can be evicted a lot faster.
Ugh...it's bad enough working with folks monthly. I appreciate the thought though.
Rent one to me cheap, I always pay, never even late.
SupraWes wrote:
Rent one to me cheap, I always pay, never even late.
2nded.... i could use a change of scenery.
The houses are in Williston, FL, approximately 25 miles SW of Gainesville. The open one is a 3 bedroom/1 bath house, about 1200 sq ft. Rent is $650 per month, or I'd just as soon sell the place for $80k.
Right in the heart of Williston on 1st ave, across from the new city park!
Checking credit before leasing to a tenant is a good idea. The cost should be reasonable - no more than $20 or so, and it is acceptable to pass that cost along to the prospective tenant. Charge an application fee that covers your costs.
Be a little careful, however. There are multiple laws protecting the consumer from adverse action on the basis of a credit report. Google FCRA and FACT Act for a taste.
You may also want to establish in advance the minimum threshold for 'acceptable' credit - so as to avoid a claim of discrimination.
Good luck with the house.
dyintorace wrote:
aussiesmg wrote:
1. There are businesses out there who will run credit, license etc for a fee.
2. Get a list of referees and actually check them
3. Demand a high security deposit
I do 2 and 3 already. I'm hoping adding #1 will help, but that's the part I need assistance with. I've never purchased that service and am unsure who to go to.
Thanks for the suggestions!
i am renting from an individual, and was asked to provide my own credit report. saved the landlord having to pay a service to do it, and i know all the info is correct
What is an acceptable credit level? 700? 675?
I wonder because I've been hearing the level of 700 being thrown around as the minimum to get a car loan right now.
Joey
700 is the bench mark go loans and such, but I think your typical renter would be lower.
You'd want to look at how many late payments someone has, and that type of stuff rather than the score.
Debt to income ratio would be higher with a renter.
if someone has 700 for a credit score, I seriously doubt they will be needing to rent a house.
Set the bar at around 650, but be aware that different agencies score differently. So Experian will show a different score than Equifax and Trans union (i think those are the 3 agencies). as Sachilles said, look at the late payments and HOW late they are. late on utilities is a very bad sign.
Go to NAIL.
National Association Of Landlords. They will be able to help you with lease creation, credit check, credit reporting, eviction check, etc.
internetautomart wrote:
if someone has 700 for a credit score, I seriously doubt they will be needing to rent a house.
Set the bar at around 650, but be aware that different agencies score differently. So Experian will show a different score than Equifax and Trans union (i think those are the 3 agencies). as Sachilles said, look at the late payments and HOW late they are. late on utilities is a very bad sign.
i have a 760 and i rent, who wants to give me a house?
dyintorace wrote:
The houses are in Williston, FL, approximately 25 miles SW of Gainesville. The open one is a 3 bedroom/1 bath house, about 1200 sq ft. Rent is $650 per month, or I'd just as soon sell the place for $80k.
Right in the heart of Williston on 1st ave, across from the new city park!
Whenever I see rent prices anywhere other than socal (where I live) I want to cry. I pay almost double that for a two bedroom apartment and I'm getting a good deal. Sigh, I need to move.
Strizzo wrote:
internetautomart wrote:
if someone has 700 for a credit score, I seriously doubt they will be needing to rent a house.
Set the bar at around 650, but be aware that different agencies score differently. So Experian will show a different score than Equifax and Trans union (i think those are the 3 agencies). as Sachilles said, look at the late payments and HOW late they are. late on utilities is a very bad sign.
i have a 760 and i rent, who wants to give me a house?
720, So does that mean my house will be smaller than yours?
http://www.quickbackgroundchecks.com/tenant_screening.html I don't know if they are a ripoff or not....
But one place I rented, demanded a letter from the county sherriff where I lived previously that stated I had never been in trouble with the law.
As noted above, 650 is low-average. Like, they had some rough spots and a few late payments,but aren't totally worthless. Anything lower than that is in the "car got repo'd, can't pay utilities" realm.
Be a little careful, however. There are multiple laws protecting the consumer from adverse action on the basis of a credit report. Google FCRA and FACT Act for a taste.
Just don't tell them they were declined because of the credit report. Uh, simple enough, no?
Just like firing somebody. I've heard it before, "Why'd you fire this person?" and the answer is "No reason".
Osterizer wrote:
Strizzo wrote:
internetautomart wrote:
if someone has 700 for a credit score, I seriously doubt they will be needing to rent a house.
Set the bar at around 650, but be aware that different agencies score differently. So Experian will show a different score than Equifax and Trans union (i think those are the 3 agencies). as Sachilles said, look at the late payments and HOW late they are. late on utilities is a very bad sign.
i have a 760 and i rent, who wants to give me a house?
720, So does that mean my house will be smaller than yours?
i guess it depends on how (ir)responsible you and i want to be
huh...mine is somewhere above 780....and I own a home...w/ mortgage etc...
I could use a week or 2 in florida.... how about it?
spitfirebill wrote:
I assume you just contact the credit agencies. Its going to cost you of course.
Where I've worked we simply contacted the (credit) references themselves. I would imagine each state has its own procedure for criminal etc checks.
Strizzo wrote:
internetautomart wrote:
if someone has 700 for a credit score, I seriously doubt they will be needing to rent a house.
Set the bar at around 650, but be aware that different agencies score differently. So Experian will show a different score than Equifax and Trans union (i think those are the 3 agencies). as Sachilles said, look at the late payments and HOW late they are. late on utilities is a very bad sign.
i have a 760 and i rent, who wants to give me a house?
who said give?
most people with a high credit score will qualify for a mortgage, which if used with a decent down payment, will be less than the equivalent properties rent.
it's not always the case, but typically is.
