If you are a landlord in Las Vegas, you know that finding the right tenant can be a daunting task. One of the most important steps in the tenant screening process is checking their credit score.
This can help you determine if they are financially responsible, as well as capable of paying rent on time. In this article, we’ll show you how to do a quick and easy credit check on your potential tenants.
Step 1: Get Permission
Before you can run a credit check, you need to get permission from your potential tenant. This can be done by having them sign a rental application that includes a release for you to check their credit.
Be sure to explain to them why you need to run a credit check and how it will be used in the tenant screening process. At this point try not to overplay the importance of the credit check to possible tenants. Having poor credit doesn’t necessarily mean that they will be bad tenants.
Step 2: Choose a Credit Reporting Agency
There are many credit reporting agencies available, but not all of them are created equal. Choose one that is reputable and reliable. Some of the most popular credit reporting agencies include Equifax, Experian, and TransUnion.
There are also a number of online services that can check one, or all of the major credit reporting agencies at the same time. Some of a few most popular are:
Step 3: Run the Credit Check
Once you have permission and have chosen a credit reporting agency, it’s time to run the credit check. You will need the tenant’s full name, social security number, and current address. You can run the credit check online or by phone.
Generally, you will be able to receive a copy of the report immediately from the major reporting agencies if done so online.
Step 4: Review the Credit Report
When you receive the credit report from your selected credit agency, review it carefully. Look for any outstanding red flags such as late payments, collections, or bankruptcies. You should also verify that the information on the report matches the information provided by the tenant.
Credit reports will contain a great amount of information and sometimes they are not that easy to read. Look for clearly marked sections such as current account information, delinquent accounts, late payments on accounts employer history.
Step 5: Make an Informed Decision
After reviewing the credit report, you will be more capable of making an informed decision about whether or not to rent to the tenant. Keep in mind that a low credit score doesn’t necessarily mean that they are a bad tenant. Consider other factors such as their employment history and rental references.
Running a credit check on potential tenants is an important step in the tenant screening process. By following these five steps, you can do a quick and easy credit check on your potential tenants and make an informed decision about who to rent to.
Using The Rental Lister for Your Property Management
Running credit checks on tenants is only one small aspect of successfully managing your rental property. There are a multitude of other tasks required like property maintenance, bookkeeping and handling tenant conflicts just to name a few.
The Rental Lister has been helping Las Vegas rental property owners manage their properties for over 20 years and we are the best in the business. If you have any questions about Las Vegas property management, or our guarantees, call us today.