How do I run a credit report on a renter?

[71T Targa]

I am thinking about renting, and need to run a credit report on the prospective renter. What information do I need from the renter, and where is the best place to get the report?

Once I have it, what am I really looking for?

Any other advice form the landlords out there?

[motion]

I use mrlandlord.com. I run a credit and eviction report ($14.95) on each pre-qualified applicant. Some landlords will charge a $30-$40 fee for credit checks, to weed out the looky-loos. I prefer to pre-qualify as much as possible before going to the expense. YMMV, but for me, the past 12 months is the most important consideration. If the applicant has a low score, say 600, but they are clean for 12 months, that's good enough for me. Every landlord has different standards. In general, I would advise to try your best to get a good, responsible tenant into your property, rather than just a warm body with a job. Oh, and good luck, you're gonna need it

[Dantilla]

There are plenty of screening companies. They will usually supply the applications. One company even gave us a fax machine.

Set your standards before taking applications, then stick to your standards. No wiggle room. No stories. A straight pass/fail. We had a flyer with the qualifications listed, so nobody could accuse us of discrimination. Either you make it, or you don't. No grey areas.

Also- Set your standards high. I would always rather have an empty apartment, than wish it was empty because of a trouble maker not paying rent.

[71T Targa]

Good info, thanks.

Hypothetically, how would you feel about a section 8, single mother of 5.

[craigster59]

Originally Posted by phred68

Good info, thanks.

Hypothetically, how would you feel about a section 8, single mother of 5.

In my experience, Sec 8 single mother of 5 quickly becomes single mother w/ deadbeat boyfriend moving in. I'd pass.

[Dantilla]

Maximum of two people per bedroom. Another rule that is non-negotiable.

We also got along great with the mailman, who would notify us if anybody not listed on the rental agreement started recieving mail at that address, an obvious sign that somebody else moved in.

After one warning letter, if they didn't move out, we evicted the entire apartment.

[71T Targa]

This is a house my wife owned before we were married, and we've been trying to sell it for a year. Still keep in contact with the neighbors who would let us know if anything 'strange' was going on there.

[Hendog]

We rented out my wifes high rise condo (appartment) after we got married. Women are emotionally attached to their properties, therefore anyone living in it afterwards while they still own it can not be as responsible as they were. My wife was a little overly picky on some of the usual wear and tear stuff. If I were to do it over and had the choice, I would buy a revenue property for that very purpose.

[lookin]

Rentals can be great.

In the past we've used a company I believe is called www.Landlordnetwork.com? They charge $60/yr and you can do as many credit checks as you want. I'd also do a credit check on everyone as you will be surprised.

I'd also strongly suggest you go to www.nolo.com and purchase their book "Every Landlord's Legal Guide". It's in a cookbook format with a CD of all the forms and goes through all the steps. You also may be able to get the book at borders or barnes & noble.

Good luck.

Dale

[red-beard]

Make sure that you have an "application", standard one are all over, and make sure it has a statement that the potential renter gives permission to run a credit check.

Credit checks are a great way to deny a shaky tenant, while protecting yourself from potential discrimination lawsuits.

[Dantilla]

Yes. The application needs a signature that approves a background/criminal/credit check.

Also check photo ID! You don't want to approve somebody only to find out after they move in that they used his brother's Social Security Number!

[71T Targa]

Great information. We have an application, and will have her fill it out today then run the credit check. This is a small town, and we're already able to verify much of what she's said.

[craigster59]

One other thing to add is applying a deductible ($50-100) to any needed repairs to the property. This helps to keep them from calling you for minor repairs, such as hiring a plumber when all they needed to do was "plunge" the sink.

[bt1211]

Here in IL. you can inform them that you will visit their current home as part of your consideration for a renter.

As the other guy said you MUST do the same to all renters.

I have them run there own credit report, if they have valid ID.

Keep all records of anyone that applied. Here in Chicago its a automatic lost for you against a prospective renter or tenent if you dont:
A. show consistant standards in finding renters
B. dont give back their deposit PLUS interest(1.68% in the city)
C. dont give reciepts for returned depost.
D. dont have a reason why you didnt rent to them

The adverage cost to you will be 2months of whatever you are charging to rent the place, court cost and their lawyers fee. I know lawyers that only sue landlords for any of these violations. These are the first 4 questions they ask a renter or applicant that wants to sue.

[red-beard]

One of my friends who owned rentals in upstate NY, would do a 2nd interview, unannounced, at the renters present address. She had been burned a lot.

I set minimum income levels for my rentals, where the rent couldn't be more than 30% of income. I had an apartment renting for $500 per month, a couple who made $12,000 per year combined, wanted to rent it. No way could they afford rent to be 50% of thier income.

Another tactic I saw was from another friend who rented to students. He would not rent to the student. He would have the parent sign the rental agreement.

[71T Targa]

OK, another question. Do you have to rent to section 8? We're doing the background check on our prospective renter, and her last landlord said he wouldn't deal with Section 8 again.

[bt1211]

You don't have to rent because they have section 8 but here in Chicago it is a violation to Not to rent to them because of section 8. They have to be excluded for another reason. Section 8 is part of their income if you have income requirements. Its different outside Cook County and across the nation.

If her landlord gave her a bad reference, that is a reason NOT to rent to her(not because she is section 8).

I have had Section 8 renters that I would LOVE to have for the rest of my life!!!! Their are those that are on sec 8 that you should never rent to but it comes down to who the renter is. The renter can get kicked out of sec 8 if they are in violation of its rules and all it takes is a call from you. The govt can be a pain sometimes to get a place qualified(if its a older place). Once all paperwork is in order you will get your "Cheddar" on- time every-time.

[bt1211]

I pmed you

[71T Targa]

The landlord didn't give a bad reference, just said that he wouldn't rent to a section 8 again. I didn't think that was allowed.

[71T Targa]

Originally Posted by bt1211

I pmed you

I didn't get it.