Tenant Screening Is More Than the Credit Score
Landlords and property managers are often willing to evaluate a prospective tenant these days based solely on their credit and income. Nevertheless, only taking this one variable into account is a strategy that has contributed to countless bad deals for landlords.
The credit score of a renter can vary among bureaus. One applicant might have a TransUnion score of in the 700 range while their Experian is 650+, for example. Such businesses have various ways of measuring credit ratings, and none is inherently accurate. That's why, usually, mortgage companies draw ratings from all three major credit bureaus and make their decisions using an average score.
It is doable to make a fair assessment of an applicant without going exclusively by the credit score. If you examine the complete credit report, ask the correct qualifying questions, and can verify the documentation, you should have the pertinent information to make an informed decision beyond just the credit score.
Look for people willing to be open and honest with you. If a renter is transparent and frank, you will work towards seeking solutions and options for housing that suit their real needs and yours. Was the prospective tenant punctual when visiting the property on time, or were they a no-show with a bad traffic excuse? Does the credit report reinforce that they are paying their debts on time, or is it peppered with late payments?
This update is by Livo, a rental optimization platform aimed at providing you with a robust revenue enhancement tool. With Livo, you can maximize rental yields, accept and manage multiple offers and offers, and enjoy better retention. Livo targets rentals with the greatest odds of receiving a multitude of offers, and those with the best locations, features, configurations, and more. Please call 833.333.5486 today to learn more.