Go behind the score with tenant credit checks

A credit report can provide a landlord with important information that can be used to make a responsible leasing decision. There are also several warning signs on credit reports that you can identify to avoid renting to the wrong tenant. With that said, there are several reasons why credit reports for landlords can be useful, such as:

Assess financial responsibility: Credit reports provide information such as payment history and outstanding debts. When you run a credit report for a tenant, you can assess whether they’re financially responsible and can afford to make monthly rent payments on time.

Remain compliant: Reviewing a prospective tenant’s credit report comes with several legal implications, such as obtaining consent to run a credit screening and keeping information confidential. Using a tenant screening service can help ensure you remain compliant with state and federal laws to protect both yourself and the applicant.

Avoid non-payment of rent: One of the primary reasons credit reporting for landlords is important is to avoid non-payment of rent. Credit reports can help landlords gauge whether a rental applicant will likely make rental payments in full and on time to avoid financial losses and prevent the need for an eviction.

Credit reports help paint a clear picture of their financial history and responsibility. To make this possible, tenant screening assesses a wide range of information that can help landlords make more informed leasing decisions. Some information you can find on a prospective tenant’s credit report include:

• Personal information
• Names and nicknames used
• Date of birth
• Current and former addresses
• Social Security number verification
• Phone number
• Credit Accounts
• Current and former credit accounts
• Account balances
• Creditor names
• Payment history
• Credit limits
• Account open and close date
• Inquiries
• Collections
• Foreclosures, liens, and bankruptcies

The cost of running a credit report for a tenant can vary depending on various factors, such as the screening service you choose and the credit check process. At SmartMove, we have several tenant screening bundles to choose from that can match your budget, so you can screen potential renters without digging into your bottom line. With SmartMove, you also have the option of passing on the cost to the rental applicant, allowing you to save more money. When it comes to checking a prospective tenant’s credit, we offer affordable solutions so you can get a better understanding of an applicant’s credit history at an affordable cost.

Yes, in order to run a prospective tenant credit check, you need to gain consent. The Fair Credit Reporting Act (FCRA) established a set of guidelines that credit reporting agencies need to abide by to protect consumers from unfair credit reporting. One of the main regulations established by the FCRA is obtaining consent from a consumer to conduct a credit screening. Additionally, tenants are entitled to a copy of their credit report if they request it. Both landlords and applicants receive copies of the credit report, and credit screening only begins after the applicant has provided consent.

There are many benefits of online tenant screening, and tenant screening can help landlords make better rental decisions in a variety of ways. By reviewing a prospective tenant’s credit report, landlords are able to assess their financial risk to determine if they can make monthly rental payments. Along with helping landlords avoid non-payment of rent, tenant screening can also help landlords find responsible tenants who can keep their properties safe.

Tenant screening with SmartMove not only provides an in-depth credit report and ResidentScore, but you can also view criminal history, income insights, employment history (where available), and more, depending on the package you choose.