Credit checks for landlords are helping to transform the landlord business into a much safer and more efficient business. There are plenty of laws, rules and regulations out there that are specifically created to help protect the rights of tenants so these individuals do not end up out on the streets. While it is good to give tenants good protection, the laws, rules and rights of tenants are leaving landlords at a disadvantage and vulnerability when the tenants refuse to pay them the agreed rent or when tenants refuse to leave the premises when their time is up. To top it off, a landlord can never know for sure how trustworthy tenants are which is tough when it comes to protecting themselves and their rental units. Landlord credit checks are the one thing that can keep you as a landlord from a terrible mistake when it comes to trusting certain tenants.
Top reasons to do a credit check for landlords
A landlord credit check is an absolute must for all landlords because it can greatly protect your rental units as well as your other tenants from a lot of harm or damage. With getting a good credit check done landlords can help to sort out those tenants who may been at higher risk that you do not want in your rental units and ensure that your rental business runs as smoothly and effortless as possible.
- It is up to a landlord to protect his own business interests and to protect neighboring tenants from harm. When you accept tenants into cluster apartments or into the business sector you are not just placing yourself in danger when these tenants are involved in misconduct. You are also placing the lives of your other tenants in danger.
- A credit check on tenants will inform the landlord on any criminal records so you can be sure that your rental business and your other tenants do not fall victim to theft.
- Some tenants have absolutely no regard when it comes to other people’s property. They will leave heaters and electric appliances on which leads to skyrocketing electric bills and they will make a mess of the apartment. They drill holes in the walls, make unsightly modifications to the apartments, break down certain appliances, windows and don’t do take the right safety measures when it comes to flooding or burning down the apartment or business property. When a landlord does a credit check on the tenant he or she can find out if the tenant is trustworthy when it comes to protecting the property.
- There are plenty of laws that will protect a tenant even when he or she doesn’t have rent money or simply refuses to pay rent. Your tenant screening will warn you about tenants with a history of refusing to pay so you as a landlord can miss out on a lot of trouble.
- A credit check for landlords will also give you the needed insight on the type of tenant you have on your hands. Are they respectable when it comes to other tenants? Or are they overly loud and do they partake in illegal substances?
- A lot of landlords purchase their rental businesses on debt as own to rent businesses. It is one of the best economical investments that a tenant can make but it involves a lot of risk if you as a landlord cannot find tenants. If one of your tenants leaves terrible damage to the premises or refuses to pay rent, you could end up losing the property and even get stuck in terrible debt when your buy to rent business goes sour.
- Some tenants will rent with you for many years to come. By doing a landlord credit check you can be sure that your tenants are completely secure so you won’t have years’ worth of trouble with untrustworthy tenants.
How to do a credit check for landlords
A credit check for landlords is surprisingly easy to do. All you have to do is sign up for VerticalRent (it's free) and fill out an online form in which you supply your own details as well as the details of the possible tenants that you are screening. VerticalRent will then do all the hard work for you and scout through more than 600 million criminal and eviction records on 1400 government databases. The credit checks are incredibly fast and incredibly affordable so you can be sure that the strangers whom you are entrusting with your expensive property are completely safe and secure.
Of course there are some things that no credit check will ever be able to tell you. If a tenant has no previous records or criminal record then you will still have to take a leap of faith when it comes to the tenant. But a credit check for landlords is the best step you can take to weed out some of the tenants who do have a terrible background so you can be so much more secure in your rental business.