Tenant Credit Check services?

rpadula

rpadula

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I'd like to tap the awesome answering power of PoA, if I may...

Does anyone have recommendations on a tenant credit/background checking service?

I've done a few Google searches, and it looks like this is a high advertising $, SEO-heavy topic, making it difficult to tell the wheat from the chaff.

The added twist is that this is commercial - for a small neighborhood retail strip shopping center. Most of the tenants I guess would be "mom and pop" sole proprietors, so would personal individual screening work, similar to as if renting them a house or apartment? Building owner is mom & pop,too. I'm guessing this is a topic up the wazoo in laws and regulations, as well.

Can anybody please point me in the right direction?

Thanks!
 
Rich, I use a rental management firm..they run the checks and deal wit the issues...They charge 8% but I find it is worth it because they seem to find clients that pay and pay on time...I am speaking about residential property though...my commercial clients are a forever clients that pay like clock work...never had to do a credit check on any of them...
 
Tell them to sit down at your computer and pay 15 bucks for a FICO score/report from myfico.com while you watch. I'm not sure if this is legal, but I've done it.
 
We use a local company we found after a Internet check. We had the applicant sign a release form and give us $10.00 to run them. We told all people interested in renting we would run a check if we decided that they could rent the property, if they pass then they got it, if not then on two our second choice.
 
Tenant Data Services.

http://www.tenantdata.com/

Be very careful on how you decline applicants. One wrong step and you have a law suit on your hands. Work with a credit agency that is going to give you the documents needed in the state you are living in to properly do the work you are looking to do.
 
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Just use the cheapest one. The data is aggregated, and all comes from the same three sources. Have a credit request on the application, and when they sign it you're good.
 
Yes, you're looking at doing individual screening for a mom-and-pop business doing retail, unless they've been around a long time and can provide solid financial statements for the business signed by a CPA and good bank and trade references. Most typical is that the owners, even if incorporated or LLC, will sign a personal guaranty for the lease. You'll want to know their resources, not just credit, so a personal financial statement is typically required and asking for the last year or two of 1040s and/or W2s is common.

The absolute credit score is probably less important than their resources and specifics of their on-time payment history.

Jeff
 
I think I would call a lawyer first before doing anything beyond a basic credit check. In some jurisdictions, you may just open yourself up to potential liability for illegal discrimination if you do anything more than that.

-Rich
 
Shoot, if I didn't rent to someone based on their credit history I'd have nothing but vacant apartments. There's a reason they're renting.
 
Gerhardt said:
Shoot, if I didn't rent to someone based on their credit history I'd have nothing but vacant apartments. There's a reason they're renting.
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I agree, I have 3 rentals and I have never done a credit check on any tenant. I do have them fill out a rental application and check them through our states Case net, that tells me more than a credit check. I have one tenant that has been in the house for 9 years.
 
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