Landlord Credit Reports
by Joe Trometer
How to eliminate tenant worries with Landlord credit reports.
To get continuous, on-time, rent payments, we must do our
"Due diligence" (inspections) first.
To get tenant screening reports we first need the permission of our prospective renter.
My rental application includes a clause that authorizes me and or the company I use to contact any references necessary to evaluate renting risks, such as:
The Clause:I authorize (company name) to obtain information on my rental, credit, criminal, employment, source of income history by contacting any references necessary to evaluate renting risks. I hereby release all references to give (company name) all requested information.
- Credit Reports
- Employment History for income verification
- Criminal Search
- Rental History
- Eviction Report
Applicant's Signature:__________ Today's Date:_______
A thorough landlord credit check on our prospective tenants before we commit to a year long lease will assist us to identify bad tenants and legally reject them.
I look for, but not limited to
:Credit scorePayment historyPrevious landlord reportsUtility late payment historyAuto loan historyEmployer reference letter
The last thing I want to do as a real estate investor is a landlord eviction!
I want the least amount of stress
possible with my rental properties!To Start: Provide a Quality Rental Unit!
The rental units are freshly painted, everything in working order and safe, passes required local rental inspections... Looks Good and Smells Good!Then I Can Expect...
The landlord credit reports I need to interview prospective renters,
that will hopefully rent from me for many years to come.
1) Landlord provides a quality rental unit!
2) Renter authorizes tenant screening reports for the landlord.
3) Landlord Rental Agreement is signed. Rent and security deposit are collected.
4) Happily Ever After... I wish it were that easy.
There are other forms (partial list)
to consider for a complete landlord lease agreement:
The Point Is...
- Lead based paint laws,
- Move in checklist,
- Utilities (gas, water, and electric) transfer sheet (optional),
- Addendum to the rental agreement, (lawn, snow, trash, storage, dish / antenna, inspections, etc.),
- Rules and Regulations,
- Maintenance request forms, and more...
Our rental application must have the tenant's authorization, signature, and date!
Then we collect the landlord credit reports needed to evaluate the likelihood of:
collecting the rent on-time,
with the least amount of problems.Reduce Stress
and collect on our investment properties with less interruptions.
Preparation before collecting rent money, in my experience,
is more profitable in the long run,
than collecting some rent money upfront
and working out the details later.A long time a go:
That carefree method resulted in lost rents for me when I first learned how to become a landlord. After Decades of Experience
I can now tell when someone wants a nice place to rent,
who is looking for a place to stay for more than a year,
has the proof they pay their bills on time,
and is willing to take care of the property.
So far... Still good!What do you think?
To comment or start your own page, Follow the links below...