Credit Checks For Landlords

Credit checks for landlords

Landlords need to do the necessary work of doing background checks on all applicants. Part of the background check is credit checks for landlords. As a landlord you want to review a potential tenant’s credit reports.

How to do a credit checks for landlords
Credit checks for landlords are quite simple. When someone applies to rent one of your apartments you have him or her sign a credit authorization form. By signing the form the applicant authorizes you to do a credit checks for landlords.

As the landlord you can then check all three credit bureaus, which are Equifax, TransUnion and Experian. Now you do not have to check all three because usually the information is the same in all three. However, all three-credit reports could contain different information because the three credit reporting agencies do not share their information. Use your best judgment on the number of credit reports you request.
When you do credit checks for landlords it may not be necessary to do all three unless you find something troubling. For example, you see a lot of late payments credit card bills. In this case you may want to make sure the information is correct.

Tenants Responsibility
When you, as a tenant plan on moving into a new apartment or house you want to make sure all your information in your credit reports is accurate. Since you know credit checks for landlords are part of the approval process you should review your credit reports annually.

In this day and age id theft is rampant. I cannot tell you the stories I have heard from friends and relatives about id theft. I had a friend who owned a landscaping business, but after a couple years closed the business. However, he did not close out all the credit cards associated with the business. Somehow someone stole his identity and applied for credit cards in the business name. After about $10,000 of charges he discovered about the id theft. He ended up have to settle the balance with Credit Card Company since he could not prove his identity had been stolen.

Considering moving into a new apartment is a great time to review your credit reports. You can ask the landlord for your credit reports after he does his credit checks for landlords. Of course this assumes you did your own due diligence before filing out an application.

Higher Rent Payment
Based on the information in your credit report the landlord may charge you a higher rent than advertised. Most apartment complexes usually have the word “from” before the rent price. You will see “from $799 a month” as rent payment.

Do all tenants receive the $799 rent? No.
Some tenants receive the $799 and some will pay more than the $799. Usually the reason for the higher rent is based on credit and not the size of the apartment. Tenants need to realize their poor credit report can cost them more money. Why not pay your bills on time and avoid higher payments?

With summer approaching this is popular time for people to move into a new apartment. As a renter you need to review your credit reports because you never know when you may want to move out. When finding a new apartment credit checks for landlords will be part of the process.

The new landlord will do their own credit checks for landlords and base their renting decision on how you have paid your bills. Make sure everything is current before finding a new apartment.