TIP OF THE MONTH - June 2015
Check Credit Reports
Source: First-Time Landlord
By Attorney Janet Portman, Marcia Stewart
and Michael Molinski (Nolo)
A handy way to
check prospective tenants financial circumstances (in particular, their
debt load) and on-time payment record is to get each person’s credit
report from @ least one credit reporting agency.
A good credit report contains a gold mine of
information, such as the person’s history of paying rent or bills late,
past bankruptcies, some criminal convictions, and sometime past
evictions. (Your legal right to get information on evictions, may vary
from state to state.) Credit reports may also give you a FICO
score, which is a number between 300 ant 800 that purports to reflect
the chances that the consumer will fulfill his or her future financial
obligations. A low number indicates a poor risk; most landlords
will reject applicants with scores under 550-600.
Credit report usually cover the past 7 to 10
years. You will need the prospective tenant’s name, address, and
SS # or ITIN # (Individual Taxpayer ID).
(more on credit reports July 2015)
This web page was updated on 05/30/2015.