When it comes to your property and making sure you are screening your applicants the right way, there are a few things to keep in mind.
Check out the 4 most important parts of a credit report, to ensure that you know what to look for!
1. Late Payments
Check for late or delinquent payments in paying rent or bills. On top of that, be sure to check for this in student loans and vehicle payments as well.
2. Criminal Record
Check to make sure that there is no criminal history. Be sure to make sure the credit report checks for criminal charges in different states as well.
Make sure that your potential tenant has not been evicted from previous residences. We also recommend asking for referrals and reaching out to previous landlords for their recommendations.
4. The Score
Depending on the type of credit report, you may receive an applicant’s credit score. The FICO score ranges from 300–850. High scores indicate less of a risk of late or non-payments. Typically, a score above 650 is considered good or less of a risk.
Another type of credit score is the Vantage score. Vantage scores have the same range as the FICO score (300–850) and have the same guidelines as well in terms of risk potential.
Overall, don’t judge a tenant solely based on their credit score. A high credit score may be attractive but does not mean that they will get along with neighbors and take good care of the property. Be sure to meet the person or use referrals to your advantage and evaluate off of their character as well.
Adding Tenant Report into your applicant screening process helps mitigate a large amount of risk, giving you the information you need to make the best decision possible — at NO COST to you!
Explore our rental applicant background reporting:
Tenant Report : Get Credit Reports + Background Checks For Tenants