What you need to know when running a tenant credit check

As a property owner and a landlord, checking your prospective tenant’s credit is important not just to gauge their capability to pay, but more importantly, a good way to protect your investment. We all know the saying “don’t judge the book by its cover”, and as a business owner, you should be objective in accepting tenants.

What’s in a tenant credit check?

Tenant credit check includes the identifying information of the prospective tenant, the name, current address and past addresses, birth date, employers, spouses and their Social Security Number. It also includes credit history such as credit card limit, payment pattern; public records which includes tax liens, bankruptcies, reported evictions and inquiries, which shows the names of people who have requested credit report on that person for the past year.

Obviously, if a tenant has a good credit history and pays bills on time, chances are, he or she will pay the rent on time as well. Of course, you should keep in mind that tenant credit checks are not foolproof. [Read more…]