So, you have a vacancy you need to fill. That means you need to get right back to the drawing board. How do you pick your tenants? Why do you pick the ones that you do? Once the interested parties come in and see the place, they may decide to take that final step and actually apply. Then you get to choose the tenants that call your property their forever home (at least you hope).
You’ve got their name, check. You’ve got their previous rental addresses, check. You have copies of their paystubs or bank statements, check, check, check. Do you really need that much more?
So, you have a vacancy you need to fill. That means you need to get right back to the drawing board. How do you pick your residents? Why do you pick the ones that you do? Once the interested parties come in and see the place, they may decide to take that final step and actually apply. Then you get to choose the renters that call your property their forever home (at least you hope).
You’ve got their name, check. You’ve got their previous rental addresses, check. You have copies of their paystubs or bank statements, check, check, check. Do you really need that much more?
Benefits of Using a Credit Report
A credit report lets you know how fiscally responsible your tenant actually is. If they’ve had a steady career, that’s great, but if they never cared to pay off their debts, why would they pay you rent? Using a credit report, you can use logical conclusions to figure out if they never, kind of, for the most part, or entirely paid their credit cards, loans, or other tradelines on time.
As a landlord, you respect your property. When you’re looking for a tenant, you’re looking for someone who will respect it the same way you do. At the least, you’re looking for a tenant who will respect you in the simple business exchange, money for a home. A credit report is just the one way to judge if they respect their debts and in turn, respect you.
Benefits of Using a Credit Report
It is very important to know who you’re renting to. A big part of that is checking to see if what your applicant claims on the application is true, and some may argue that the most important thing is looking into the criminal history. Some might think that as long as they aren’t a danger to your other tenants, neighbors, and the property itself, that’s enough. Unfortunately, that’s just one part of it.
So, you have a vacancy you need to fill. That means you need to get right back to the drawing board. How do you pick your tenants? Why do you pick the ones that you do? Once the interested parties come in and see the place, they may decide to take that final step and actually apply. Then you get to choose the tenants that call your property their forever home (at least you hope).
You’ve got their name, check. You’ve got their previous rental addresses, check. You have copies of their paystubs or bank statements, check, check, check. Do you really need that much more?
A credit report lets you know how fiscally responsible your tenant actually is. If they’ve had a steady career, that’s great, but if they never cared to pay off their debts, why would they pay you rent? Using a credit report, you can use logical conclusions to figure out if they never, kind of, for the most part, or entirely paid their credit cards, loans, or other tradelines on time.
As a landlord, you respect your property. When you’re looking for a tenant, you’re looking for someone who will respect it the same way you do. At the least, you’re looking for a tenant who will respect you in the simple business exchange, money for a home. A credit report is just the one way to judge if they respect their debts and in turn, respect you.
Now More than Ever
We should address the elephant in the room. If you’ve never cared about a credit report when screening your tenants, that’s fine! It’s up to you to decide what your written rental policies will be, even during the pandemic. While it isn’t likely that getting evicted would affect a credit score, the job market bust very well could. Although the CARES Act protects those currently unemployed from getting hit with a declining credit score while deferring or partially paying loans and credit card debt, those protections won’t last forever. With everything going on, credit reports and tenant screening will be a major tool in filling your vacancies.
Now More than Ever
We should address the elephant in the room. If you’ve never cared about a credit report when screening your tenants, that’s fine! It’s up to you to decide what your written rental policies will be, even during the pandemic. While it isn’t likely that getting evicted would affect a credit score, the job market bust very well could. Although the CARES Act protects those currently unemployed from getting hit with a declining credit score while deferring or partially paying loans and credit card debt, those protections won’t last forever. With everything going on, credit reports and tenant screening will be a major tool in filling your vacancies.
Your new applicants may be perfectly good tenants who just had one bad turn in 2020 and you can handle that. If you use the benefits of a good tenant screening service with a trustworthy credit report, you’ll be able to see if they are fiscally reliable people outside of COVID-19. Using all the data at your disposal, you can make an informed decision about what is best for you. If you decide they may be worth the risk, then they’ll be grateful to you for understanding extenuating circumstances, and you’ll be filling vacancies a little easier.
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Your new applicants may be perfectly good tenants who just had one bad turn in 2020 and you can handle that. If you use the benefits of a good tenant screening service with a trustworthy credit report, you’ll be able to see if they are fiscally reliable people outside of COVID-19. Using all the data at your disposal, you can make an informed decision about what is best for you. If you decide they may be worth the risk, then they’ll be grateful to you for understanding extenuating circumstances, and you’ll be filling vacancies a little easier.
