Credit/Employment check - Landlord Forum thread 359251

Credit/Employment check by peterhuang123 on April 29, 2019 @18:01

I recently became a landlord and have a few interesting thoughts and would like to see how people handle them?

1) The Credit report doesn't show whether previous *rental* payments specifically were paid and on time, and that matters way more to me than whether they made credit card payments on time.

2) Young tenants have little to nothing in their credit reports

3) Employment verification services are very expensive

Would love your thoughts, thank you!!

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Re: Credit/Employment check by Garry on April 29, 2019 @20:00	[ Reply ]

Welcome to the world of Landlording. Credit reports are not very specific. To get info about whether a tenant paid on time, you must be able to get ahold of their current landlord, and possibly their immediate previous LL, and ask them about their payment history. You are right. Younger possible tenants have little to no credit history, because they are just starting out in life. For those tenants, the real question is, do they have a stable income, and job history when they apply at your place. It's even possible you may want them to have a co-signer (their parents) if they want to rent from you. Just because they are young, with little credit history, does not mean they won't make good tenants. I wouldn't say employment verification services are "very" expensive, but yes, it does cost a LL to have lots of things checked out before you rent to someone. The cheapest way to check employment out, is to require the past 2-3 months of pay stubs. Generally LLs require an application fee from the T, of $20-$50 so you've got some money to pay to gather info on the T.

Re: Credit/Employment check by June on April 30, 2019 @01:51	[ Reply ]

Hello Peter, Always make the applicant pay for all the tenant screening fees. If they want your rental, they will gladly pay. I use the LPA Employment Verification form and I add on it, annual pay. The HR or Biz Owner puts down all the info and signs it! Do the same with the LPA Landlord Verification form. The past LL's will fill it out and even blab all on a follow up phone call. All the best to you. I learned TONS OF GREAT INFO from LPA and am sticking with this great organization and all the wonderful LL's out there that support us and help us with all manner of info and help! Can't beat it! Regards, June

Re: Credit/Employment check by Brendan on April 30, 2019 @23:32	[ Reply ]

If you want, you can phone current and previous employers to verify dates of employment and recent salary. If you phone previous property managers, you will need a release form signed by tenants first. Current property manager will ask you for this.

Re: Credit/Employment check by ERIC on May 27, 2019 @08:28	[ Reply ]

Background checks are a part of doing business. Use a service and charge the tenant a fee. Young tenants have credit scores, even at age 18. Background checks are your key to profitability.

Re: Credit/Employment check by Robert on June 11, 2019 @10:05	[ Reply ]

1. a online credit check tenant pays is only $25. 2. call previous landlords! 3. no credit but all else seems good, either increase rent some or require last months rent paid to you over 4 months or so. explain their no credit will just require something from them to cover you higher risk. or get co-signer. 3. get pay stubs from prospective tenant.