Can You Do a Credit Check on a Prospective Tenant?

You have rental property. You’ve worked very hard to establish it as a passive form of income. Your rental revenue doesn’t need to be interrupted by tenants who, six months down the road, cannot or will not pay what is due each month. In fact, TransUnion states the following: 84% of landlords say payment problems are their #1 concern regarding new tenants.
 

When property owners are forced into challenges where tenants don’t pay their rent, evictions and taking renters to court (assuming they can be found) can become nightmarish scenarios. Evictions and court proceedings are time-consuming, disruptive, mentally draining, and costly.
 

Now, more than ever, property owners and property managers must be very astute and discerning when it comes to selecting a tenant for their rental properties. According to the USC Equity Research Institute, those whose income is $50,000 or less are in a category where, almost, 1 in 5 renter households are behind on their monthly payments. Those who make more than $50,000 are not immune to rent-debt, either.
 

Mounting rent debt is becoming a crisis situation in many parts of the US – close to 7% of private renters are in arrears – this is twice as much when compared to an average year before the COVID-19 pandemic hit. Depending on where one lives, rent debt can vary from $2,700 per household to $10,000 per household and higher, and being four months behind is not unusual.
 

In the midst of this, property owners must pick up the financial slack to ensure their debt to the mortgage lender gets paid. CNBC tells us that, as of January 2021, landlords across the country have been financially entangled with an astounding rent-debt total of $57.3 billion.

Doing a Credit Check on a Prospective Tenant is Vital

So, can you do a credit check on a prospective tenant? The answer is, absolutely! In fact, doing a background check is important, too, since it would list any criminal history. Finding that ‘perfect tenant’, whose credit check lists an impeccable history of paying debts, is every landlord’s dream.
 

Efficiency helps independent property owners and managers quickly filter through the myriad of prospective tenants who come their way. Efficiency promotes smart landlording and allows property owners, such as yourself, to selectively choose tenant candidates with a track record of monetary maturity who will be more likely to respect your property and respect the ‘rent due’ guidelines every month.
 

Efficiency allows independent landlords and property managers to:
 

1. Run a credit check and background-check, within minutes, at no cost
2. Automate time-consuming, manual tasks related to tenant-screening – enjoy more personal time
3. Sign up for free – your credit card is not needed
4. Reduce vacancy periods – $$ saved
5. Store tenant documents, securely
6. Obtain report results on any device, 24/7 – mobile optimization = on-the-go convenience
 

A credit history and a background check are critical components of wise landlording! The insight embedded in these types of reports will streamline and narrow down your search for responsible tenants.
 

You want to feel confident that your tenants will pay their rent in full, on time, every time. Efficiency acts as your layer of protection against the unintended consequences of filling vacancies too quickly with tenants who did not go through the vetting process.

Doing a Credit Check on a Prospective Tenant is So Easy

Efficiency allows you to collect online applications and comprehensive tenant screening reports, at no cost – that’s correct, no cost. Efficiency is your landlording tool designed to gather all the information you want and need, at your fingertips.
 

The 1-2-3 process couldn’t be any easier:
 

Step #1: Create a free efficiency account to initiate the tenant background check

To create an account, Sign up now, and in less than two minutes, you’re ready! And remember: independent landlords and property managers don’t pay a cent to garner the online rental applications, credit histories, and background-check reports that help them make prudent and informed decisions.
 

Step #2: Invite prospective tenants to apply

With your efficiency account established, you are ready to invite tenants to fill out the user-friendly online rental application. Efficiency allows you to invite tenants to apply for your rental property, and it takes 30 seconds, or less! It’s quick; it’s easy! Take a moment to view this short video – it sums up the simplified process regarding tenant invitations.
 

Step #3: Review the results of the tenant-background check

Once your prospective tenant completes the application and tenant background check, you will be notified and can view the results on your efficiency dashboard – within minutes! The tenant background-check report will include a credit report, criminal report, and eviction report that you can access and view from any device – whether at home, at work, or on the go.
 

Efficiency is all about your tenant search becoming streamlined and refined. Think about it – anywhere, at any time, from any device, concerning anyone, you have the option to quickly review the credit and background information you need to make those critical tenant decisions that can help to safeguard your other tenants, protect your property, and optimize your business’s income stream.