Landlord Credit Check and Background Check Reports

Landlord Credit Check and Background Check Reports

Tenant Background Checks for landlords and property managers is a great way to help reduce risk from property damage and limit costly eviction processes by running background checks before a property is rented out. It is important to know whether a potential renter has a good credit score, or if they have a criminal record and what previous landlords have to say about them. Finding out this information can provide landlords and property managers with the data they need to make an informed decision.

An important factor leading to evictions is a rent to income ratio. 25% of renters spend 50% or more of their income on rent according to the 2015 survey. Renters spending more than 30% of their income on rent have a higher ratio of evictions than those who spend less. When you run a credit check on a prospective renter, this is something that should be considered before making your rental decision. According to a RedFin survey 2.7 Million people faced eviction in 2015, and those are just the knows ones that went through the court system. Part of the reason why this is occurring is that rental prices have gone up 66% since 2000 while median income has only increased 35% leading to people being evicted from rental properties they could once afford but can no longer do so.

According to a recent TransUnion survey, the average eviction proceeding costs a landlord $3,500 per instance and can take up to 3 or 4 weeks to complete. This is an enormous cost for a landlord, especially ones that aren't huge commercial property owners. Making sure that you have credit-worthy tenants can really help reduce these risks.

In addition to criminal background checks and credit reports, running eviction record reports can give you an even better idea of whether or not a prospective tenant may lead to eviction proceedings. Statistically, previously evicted tenants are 3 times more likely to be evicted again than never-evicted tenants.

Tenant Screening Articles

• 5 Things to do before renting out your house

• Eviction Records

• What to expect from "free" background check sites

• Landlords & Property Managers: Using Credit Reports

• Major Credit Bureaus Removing Tax Liens from Credit Reports

• How far back does a criminal record check go?

• Online Background Checks - Do Online Databases Provide Accurate Information?

• How can a candidate's current or past income be verified if the employer won't release salary information?

• Background Checks & Social Media - Using Court Records & not Search Engines or Social Media.

• Key Differences between In-House and Outsourced Background Checks

• Restore your credit rating

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