Introduction
When people rent out their property mostly they check the credit history of the potential tenant. Question is how to credit check can takes place, there are many ways through which we can do this. Credit check of a potential tenant reduces the risk of finding troubled tenants.
Step 1
Application Form and Permission of the Potential Tenant
Often people ask how to credit check of a potential tenant carried. First of all you need a written application of that potential tenant in which he also mentioned his address and social security number which is necessary to credit check.
Step 2
There is a permission of that tenant also needs to check the credit in which he authorize you to check his credit report and it is up to you that how to check his credit ratings.
Step 3
Verifying the Information
As the potential tenant provide you the information and you tell him that how to credit check will going to be perform the next step is you need to verify the said information from the employer and other related people or firms.
Step 4
Contact with Old Landlords
Another good way which shows you how to credit check history of your potential tenant is contacting with his former landlord and asks about his record. Most of the people rate this toll as most effective to know the past credit history of your potential tenant.
Step 5
Credit Reporting
Hire a well known and reputed company which provides his credit history. These credit reporting firms also tell you about his convictions and evictions if he has any in past.
Features
Independent Agencies
There are many independent agencies which can guide you about how to check the credit ratings of a particular person. These agencies charge per report. Some of these agencies also offer membership fee. If you have more than one rented property than membership offer is more economic as you have to do how to credit check many times in a year, whereas if you have only one or two rented properties than per report option is more viable.
Comments
Multiple Services for Landlord
All these agencies provide multiple services to the landlords. Sometimes standard credit report is not enough to judge the credit history of a potential tenant. In that case these companies provide you the additional facilities and information of that person through how to credit check can be obtained.It is very important to know about the past record of those persons who are your potential tenants as problem maker tenant often becomes a headache and in the end we have to go for litigation and have to pay lawyer fees and other charges. There are many ways through which you will know how to credit check for your potential tenant performed. You have to know about the person whom you are going to rent out your property because it is not just your right but it can save you from many future problems. You can perform credit check after getting permission of that particular person. It is advisable that perform credit check from a reputable firm.
