Property Rental Owners - Credit Check Question/Merged

[JoeWilly]

If you have property rentals, can you recommend a credit check/criminal background company that you use to screen potential renters? Also, do you use a general minimum credit score to weed out renters? If so, what is that credit score number? I'm looking for an on-line company. Thanks for your help.

 

[cvmar]

I use http://tenantverification.com they have a very informative website that should answer any questions you may have.

 

[JoeWilly]

Thanks Cvmar.

Is there a credit score you generally use as a weed out--if your credit score is below XXX, I generall won't rent to someone? What is the credit score threshold you use?

 

[DEROS]

Thanks Cvmar.

Is there a credit score you generally use as a weed out--if your credit score is below XXX, I generall won't rent to someone? What is the credit score threshold you use?

When I applied to rent an apartment, the renting agency did a credit check on me. They were not looking at my score but how may times I was late paying any bills and my open balance trends. They were very strict and told me that if I had any late payments or too many balances that it would disqualify me to rent. However they explain to me their logic and it sound good.

Reason: Most likely you want all of your money and on time. Seeing a trend of paying debts late could give you a indication of when you will get paid (late). Also, if a person has to many open balances but they pay on time (which would give them a good credit score), may indicate that they may not make enough money to pay you in full. Unless you going to give them a line of credit and let them pay down the rental fee over time. i.e 100 month for 12 mths to pay for a $1200 one week room rental. (I am assuming this is a TS rental)

 

[Talent312]

Is there a credit score you generally use as a weed out--if your credit score is below XXX, I generall won't rent to someone? What is the credit score threshold you use?

As long as you have your money B4 you hand over the keys, I'm not sure that their score makes much difference. Banks like 720 or more for motgages, but you're not giving them a house to live in for 30 years. Still, I'd likely pass on anyone who's score was less than 640. This would allow for a late payment, overdraft or two, or a delinquent account, which can happen to anyone due to single employment or medical problem who is othewise trustworthy.

 

[JoeWilly]

Thanks for your help Deros and Talent.

Good point at looking at late payments. This is a long-term rental--college rental house where tenants rent for one year. I'm asking because I want to run credit reports on the kids as well as the co-signers.

 

[yan19454]

It seem you are first time renting the house. Why not ask the realtor ? You get more exposure in the marketing. Also some one keep you on task. I just sign the paper with realtor to try to rent out my house. Realtor would have do the credit check for you. The prospect tennat pay the application fee.

 

[JoeWilly]

Thanks Yan.

This situation is a little different. This is a college rental house. Our son and three other people lives in the house. We have no problems getting tenants, so no need to pay a realtor for marketing, etc.. We do however need a credit check company to help screen tenants.

 

[MelBay]

Last November my dad died and left me with 8 pieces of investment real estate I need to keep full so I can pay for mom's nursing home. At the advise of some TUGgers, I went to a property management company, rather than doing the online thing. Reason being, I found out that often the potential renters don't want to give you all the info (SSN, etc.,) but will give it more readily to a "professional company" who will run the screening. The place I went with is part of a real estate company here in town, and they said they would just do that part of it for me, or could collect rent, etc. I am using them for everything but wouldn't hesitate to use them just for the screening part if I so despearately didn't want all these people on my doorstep every month telling me why they can't pay.... Anyway, see if you have a property management company in town that will do this. I think it's about $37 for each potential screening. And, one of the potential candidates had a jail record, so I really felt like I got my $37 worth on that one.

Good luck, and just my .02.

 

[JoeWilly]

Thanks Melbay--sorry to hear about your dad. I'll look into seeing if a local property mgmt. company would be interested in doing tenant screening only.

 

[Mydogs2big]

I use a local Rental Association, which uses NTS (National Tenant Screening Services)

I get a report and a suggested DO RENT or DON"T RENT.