Credit screening is essential in finding the right tenant for your rental properties. It is possible that you don’t know how to find suitable tenants if you are a novice landlord.
We will be covering the basics of credit screening in this article and what landlords must know to get started.
What are the credit screening reports landlords can use to screen potential tenants?
Credit scores are a combination of credit history, payment histories, amounts due, credit mix, and credit history.
Credit screening reports for landlords are run through a credit-checking system. These reports reveal the tenant’s credit score. These numbers are used by landlords to determine if tenants will pay their rent on time.
How do I determine which tenant has the highest credit score?
After you have run the credit checks, this report can be used to view a tenant’s credit history and decide if they are a good match for your rental.
Please note: Your individual preferences will dictate which credit score you select for your tenant. A “good” Credit score ranges from 600 to 800.
It is possible to sign-up for property management software if you have many applicants interested in renting your property. This software allows you to prescreen applicants based upon credit scores. Tenants often report their credit score. If you’re ready to move in with a tenant, you can request certified tenant screening.
What is the difference between tenant screening and landlord credit checks
Tenant screening does not equal credit checks.
Credit checks are exactly what they sound like. The landlord pulls a tenant’s credit score to determine whether it meets their credit criteria.
Tenant screening offers a complete picture of the rental history. Late payments or student loan debt can negatively impact credit scores. SO complete tenant screening reports can be helpful to get more context. They can include information about a tenant’s criminal and credit history, as well as their eviction history.
Best credit screening to landlords
A variety of tools are available to tenants for checking their credit scores. What options do landlords have for getting a credit report?
A credit report can be easily obtained on your tenant.
There are many options available for landlords. RentRedi property management software, however, is our recommendation for thorough credit screening and background checks.
RentRedi’s credit reports are TransUnion-certified. RentRedi offers tenant screening. This allows you access to all your credit, criminal, and even eviction reports, along with a personalized leasing recommendation.
Full Credit Reports: TransUnions’s tenant credit reports use ResidentScore 15% better than traditional credit scores to predict rental risk, helping you make more confident renting decisions.
Tenant Criminal Record: There are more than 370,000,000 criminal records in national and state databases that provide comprehensive information.
Tenant Eviction report: A vast eviction database subject to the FCRA, with 27,000,000 records covering all 50 States and Washington D.C.
Why should you use property management apps to screen tenants?
A comprehensive, integrated property management system is a great way of managing your entire rental process. This will benefit you both as an investor and your business. It’s easy to list your units, and screen potential tenants. You can also send leases to & collect rent.
This allows you to screen, manage and monitor tenants once they have signed the lease.
