Would it help if tenants’ rents were reported on their credit reports?
We often hear tenants calling for rents to be included on the credit report services to help them secure a tenancy. Is this really necessary? The questions for the landlord should be what are you using the credit report for in the tenant selection process? What information are you looking for on the credit report?
The tenant selection process is and should be a long process. It starts with the first contact from the potential tenant inquiring about the property. From that point on it is a constant interview of the potential tenant, until the final decision to rent the property is made. Many details are provided in the pre-screening process and the showing of the property that a landlord should make notes of and review when the application form is supplied to confirm those details match the information provided.
We often hear infomation about employment that is not what the applicant puts on the application form. This can include location, estimated income or role at the employer. When the information provided is incorrect it should be a red flag the applicant is trying to provide information to make them look better than they are. We have received phone numbers that are direct to individuals and when we call the company indicated on the application form the individual is not employed at the company.
We contact landlord, personal and employment references with the intention to verify the information provided. When you ask an employer if the 50K salary is accurate when the application says they earn 75K and the employer doesn’t correct you, that is a red flag.
When you call a personal reference whe syas they have been friends for 20 years and they have no idea what they do for work, they are not really long time friends.
We use the credit report as the final step to verify there are no glaring financial issues that could be of a concern. The credit report provides more information than just the credit score.
It shows the credit score. If shows they have one or two car loans, as discussed in the application process. It shows the previous address the applicants lived at. All of these details are information that helps the landlords determine if the person is telling me the truth about who they are and are they going to be a good tenant.
Our experience is people who are good tenants, don’t hide anything, they provide the information we ask for in a timely manner and we are able to find the details about their work, places of residence online before we begin making calls to verify the details.
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