Landlord credit check is an important element in the screening process. Once you have run the check on the credit of your applicant, then you are ready to begin verifying their current and prior residency.
When preparing to perform a tenant credit report, it is a good idea to have a list of questions written out that you want to ask their landlord or manager. It is very important that you document your notes on each and every applicant that you perform a landlord credit check on.
The credit report can show you a wealth of information on the background of your potential renter. One of the most critical things it that it can help you confirm the identity of your prospect. Identity fraud is a huge problem in today's society, and there are a lot of people out there that skip from property to property using an assumed identity, and once there, just hole up and stop paying the rent. Then they live rent-free while you go through a long, painful eviction process.
But even after you confirm their identity, there are other things to check. Their financial history can give you a good indication if they are going to pay their rent on time. If they have a history of late payments, that could be a good indicator that they might start skipping payments on you. Of course, a red flag could be a recent bankruptcy, which can show a pattern of bad financial decisions.