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Tenant Credit Score is Easily the Best Indicator of Tenant Quality: Here’s Why

credit-40671_1280-PDI know many landlords, and despite my success at screening and selecting tenants, they often think somehow their property is different from mine. They do not think they can use the tenant credit score as a reliable indicator. They are ignoring tenant credit score to their own peril.

The fact is, tenant credit score is the most reliable indicator of tenant success that there is, bar none. You need to make sure that the tenant can afford the unit with an income of 3.5x the rent, but the tenant credit score will weed out the people that have behavioral issues and have no problem cheating anyone that they owe money to.

If you are a landlord, you know you need to do a background check. A critical piece is getting a credit report, complete with a credit score. The credit score is a summation of everything that goes on a credit report. It is calculated the same every time, with no bias to any discriminatory practices. It is colorblind and not subject to any fair housing issues.

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What do you think of using tenant credit score to predict tenant payments and behaviors?

 

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The Ultimate Comprehensive List of Tenant Red Flags

red-flag-339489_1280-PDDo you know what tenant red flags you should be on the lookout for?

When you are screening tenants for your rentals, it is pretty easy. You take an application, submit it to a screening company and wait for the results. You have pre-set tenant selection criteria, and you compare against the criteria. You let all the incoming prospects know what you are screening for, and you let them self-screen as much as possible. After comparing the results to your criteria, if the tenants pass, you accept them. If not, you move on to the next applicant.

Read the rest of the story here…

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Risk of Tenants with Low Credit Score Explained

I wanted to expand on the credit score criteria in any Tenant Screening Requirements just a bit.

It is a fact that lower credit score individuals are a high risk to insurance companies, and for collecting payments. It is a fact that lower credit score individuals engage in riskier behaviors.

Here is why tenants with a low (or 0) are high risk.

Continue reading “Risk of Tenants with Low Credit Score Explained”

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Should I allow my renter to have a dog?

cane-corse-85572_1280-PDShould I allow my renter to have a dog?  In order to reach the greatest possible audience, you need to market correctly, and avoid excluding large pools of renters.  Some pools of renters you do not want, criminals and deadbeats being two of them.  But pets are another issue.  A tenant may “check out great otherwise”, by a landlords definition, but they have a pet.  Should you take the tenants with dogs? Continue reading “Should I allow my renter to have a dog?”