Spring is in the air, and it's that time again—moving time! During the warmer months, you're likely to have an influx of prospective tenants. That's a good thing, but it's easy to get overwhelmed by the number of applicants. Make sure you complete your tenant screening properly. To help you out, here are five questions to ask when performing a credit check.
1. Is the prospective tenant consistent in how she handles money?
Someone who pays rent on time and keeps up with bills will likely make a better tenant than someone who ignores financial responsibilities.
2. Has he paid rent on time in the past?
If he missed past rent payments and a previous landowner reported it to the Credit Bureau, this will show up in the report. Missed payment are a clear red flag. Why would he treat you any differently than past landlords?
3. How much debt does she have?
Having debt isn't a deal breaker in and of itself but do check to make sure the monthly debt payments won't keep your prospective tenant from paying her rent.
4. What does his accounts tell you?
Does he make on time monthly payments on his open accounts (such as credit cards)? Does he have satisfied or paid in full accounts in his credit history? Or does he have a history of delinquency? These are all things to look for when checking credit.
5. Has she filed for bankruptcy or had a history of foreclosure?
Someone with a bankruptcy or foreclosure can still make a good tenant. However, there are a few thinks to look out for. In the case of bankruptcy, make sure it's a discharged bankruptcy and not a pending one. When it comes to foreclosure, check to make sure the prospective tenant no longer owes a balance. If she does, make sure she can still pay rent while paying off that balance.
Through our online credit, background, and eviction checks, we at VerticalRent work to make your job as a landlord a little easier. Take a look at our website or contact us to see how we can help you.