Tenant Background Check
What is a tenant background check and why do you need to do it?
If you are a landlord thinking of putting your property up for rent then going for a credit search on your tenant is a must. These credit searches will find out about the previous history of the applicant and ensure that only the best tenants are selected. The areas in which information is collected include reports of any sexual offense, previous eviction report (if any), criminal reports and much more. Also it is important to find out the employment summaries of the applicant so that the landlord can get maximum profit from the applicant and not false promises of the rent being paid on time.
How are these credit searches conducted? A number of online service providers will provide a fast and safe experience of credit searching. These websites save the hassle of running to the local police station and previous properties to find out the required information of the applicant.
• A few most popular websites are tenantbackgroundsearch, mysmartmove, tenantverification, e-renter and many more.
• These organizations run an in-depth search based on credit scores from big data warehouses or national credit bureaus like Equifax, Transunion an Experian each of who contain their own database.
• The credit scores are also known as FICO scores. Fico is an algorithm named after the company that invented it that collects credit information on every citizen based on five main categories which are, amounts owed, length of credit history, new credits, credit mix and payment history. Each category has its own percentage of importance and a longer length of credit history ensures a higher FICO score.
• Since each data warehouse has their own database, there are in total 65 FICO scores for an individual. Which website chooses whether to collect information from one warehouse or more is completely up to them.
• Usually a higher FICO scores ensures a lower risk.
• The websites have a very easy strategy for the landlords to run the check. They only need to open a completely free account on the websites and then request the search. However websites like tenantbackgroundsearch do not require any membership and you only need to pay a onetime fee that starts from $19.95 for a basic search report and extends upto $29.95 for a detailed one.
• The websites will send a link to the applicant asking for their permission to collect credit data and as soon as the request is approved they will collect information on a number of areas.
• The final report contains FICO scores as well as other information based on what plan the landlord applied for. It is sent to the tenant for their authorization after which the report is mailed to the landlord.
• The main glitch is in the authorization as it may take an indefinite time depending on when the tenant approves the report.
• The areas covered in a standard report that comes for a price of $19.95 are- criminal offense, sexual offense and eviction report information.
• The standard plus and comprehensive tenant screening reports cover a lot of areas like
• Credit report with FICO score, foreclosures, employment summaries, criminal offense, sex offense, patriot act search, bankruptcies, medical collections, past address history, eviction history for judgments and a nationwide eviction report for both judgment and non-judgment.
• These websites are 100% safe with respect to payment. All of them are protected by a 128 bit SSL encryption.
• Also the tenants need not worry about the reflection of the credit report on their scores as these searches are authorized by themselves so they are known as soft searches.
• The websites often pool data from more than one warehouse so it is advisable on the part of tenants to check their credit scores regularly on all the three national data bureaus to have a perfect credit score.
So, be prepared completely the next time you go tenant searching and opt for these Tenant Background Check services!