Landlords...do you run credits cks & how?

[ceecee]

We have a rental and are thinking of running a credit ck on a potential tenant. No previous landlord since he owned a house but is getting a divorce and will file bankruptcy probably. Any landlords out there? How do you screen your tenants. The last time I just called the employer and previous landlord.

 

[NYCDiane]

Unless you are a corporation, I don't think (as a private person) you can legally check someone else's credit, even with written consent. You will probably have to pay a company to do it for you. There are plenty of companies that perform background and credit checks for a fee.

I don't even think (legally) an employer can give out info on an employee.

One thing to remember is this: Just because a person has "good" credit, doesn't mean they're going to be a "good" tenant and just because a person has "iffy" credit, doesn't mean they will be an "iffy" tenant.

If he was a homeowner, is now getting divorced, and told you he will be filing BK, why are you doing a credit check?? It's VERY likely both he and his ex ran up credit cards, etc and never paid them because of the pending divorce. This happens ALL the time ---- husband and wife looking to "get back" at one another and think that by ruining one another's credit, they're doing something. I've seen it a million times. Running this person's credit report isn't going to help you in any way, shape, or form if this is the case.

Your best bet is this: When he comes to sign the lease, make photocopies of his driver's license, Social Security card, and his last 4 paystubs. This way, if there comes a time you have to do any court action, you will have his information.

 

[tvguy]

Unless you are a corporation, I don't think (as a private person) you can legally check someone else's credit, even with written consent. You will probably have to pay a company to do it for you. There are plenty of companies that perform background and credit checks for a fee.

I don't even think (legally) an employer can give out info on an employee.

.

Credit checks are standard operating procedure here for landlords, and they charge the potential renter a non-refundable application fee to pay for them.

There are limits on what an employer can say about an employee. But, they can confirm employment dates, and confirm or deny salary level. The employer can't say "John Doe made $30,000 and worked here 10 years". But, the landlord can ask the employer yes or no questions based on the information provided on the rental application by the potential rental. So the landlord can ask did John Doe work for you for 10 years? Did he make $30,000?"

 

[Minnie-Mickey]

Good luck with your search. Hold out for a better tenant in my opinion. Are you in a rush? If he is declaring bankruptcy he will most likely not pay you as well. You can pay companies to do the background/credit check. This is what we do. We went through the same exact situation. It landed us in court out big money and even with a court order it was tough to get him out. He gave us the same sob story. It is the first and only time we ran the business with our heart and not our heads. Remember it is a business.

 

[teacup princess]

We hire a company to do it for us. They charge $25. So we have a $125 application fee. $25 of which is non-refundable and goes toward the credit check. $100 goes toward their security deposit if approved or is returned if we deny them. We find that the small no refundable $25 fee helps to get rid of the people that are just wasting our time.

 

[sunshinehighway]

What would be the point of checking his credit? If he told you he's about to file BK, it's a pretty clear indication his credit score isn't very good.

 

[Egdisney]

If you have a bad feeling about him, don't rent to him. What is the credit check going to do for you? People have to declare bankruptcy for a variety of reasons. Perhaps he received all of the debt in the divorce, and if he intends to have a place to live and needs to pay child support, he cannot meet the obligation. My friend had to spend over 30,000 to get her divorce finalized. Luckily her parents were able to help her, I don't know what she would have done otherwise. Having bad credit does not make you a bad person, and most people choose to pay their living expenses above all else. If you are still unsure you may think about changing to a month to month lease, it was advice we received from a very experienced landlord(100s of properties) who had received that advice from their attorney. You could also require he give you the largest deposit allowed by law(usually 1 month security, first and last). I say honesty should count for something.

 

[tina.tina]

Be careful who you rent to. It's hard to get rid of someone who isn't even paying.

My parents are landlords with 6 properties for about 25 years. They have been pretty lucky but when they looked into evicting someone, it would've been a nightmare.

They never should have rented to that couple but my dad is a teddy bear. He is also a big 6'3" man who worked at a prison for 30 years. When he went to the door and told them he was exploring his options and wanted to let them know, they got pretty intimidated and took off within a few days!

My friend also owns an apartment complex. A tenant accused him of harassment and they had to let that tenant live there while all of that was going on and couldn't get rid of her.

 

[tvguy]

Evictions, 3 am emergency calls from tenants, $5,000 emergency repairs that need to be done and paid for today, no rent coming in due to vacancy, or late, or partial payments, all part of being a landlord.
Twice DW and I have inherited houses, and twice we VERY briefly considered renting them out, no thank you. I have enough problems keeping up with issues at the house I live in.

 

[JusbKoz]

Hi, we rent out a house we own in Georgia which is a pro landlord state.
I also did a back ground check on our renters through public data. I found out they moved in a crack dealer after they signed the lease and when he was caught he gave our address as where he lived. Get a first , last month, and deposit. I would never take anything less!
We have since hired a management company to handle our property from now on. They do cost money but overall they cost us less because they have the people in place to do repairs. Good Luck!