What's that you say? Having tenant problems? Mebbe this will help. Here's a couple of freebies on the subject of "Tenant Selection", excerpts from "LANDLORD SECRETS - A StreetSmart Guide to Managing Your Own Rental Property On Your Own Terms." Maybe you can use 'em in your Pursuit of Happy Landlording.
MAKE ONE CALL to a LOCAL credit reporting agency.
And lest I confuse you, I don't mean the "credit bureau", which tends to be a bit selective and stuffy about divulging their treasures to non-members.
"So", you ask, "What are these things, and how can we avail ourselves of all this professional and highly trained help?" Fear not... the business folk of which I speak are local companies that do basic credit checks for small businesses (and landlords) for a small fee, usually less than $25. Money well spent. Check your local directory under "Credit Reporting Agencies". Call one or two, chat a bit, ask questions.
One such service in my area does credit checks by phone or fax. You fill out their form, furnish some basic ID on your applicant, and fax or call them. Go about your landlord business while THEY call the big boy credit services. Turnaround time is a couple hours, a day at most. Time well invested. Expanded services are often available, but what you're after is the basic check of the applicants credit file. In other words, does this person pay his or her bills?
So just what can they turn up? All kinds of things... former addresses, RESIDENCES, creditors, and loans on file. A veritable treasure chest of good landlord information. You must have the SSN, and the signed application which gives you permission to access personal credit information.
Here's what I do. Go back to collecting all the applications (you DO have more than one, yes?). First, screen your applicants with a call to their employer and previous landlord. That usually sorts 'em out to one or two good prospects. Then run the credit check. If it's good news - sign up the lucky applicant, collect your money, and run to the bank. If you don't like what you hear, check the next in line, and so on.
Want more? Do this. Always have the applicant pay for the credit check. Yep, say so right on the application. If they want to rent from you, they have to pay for the check-up. (Remember your mortgage application? You paid for a credit report, anywhere from $35 to $75). This is no different, so explain it and collect a fee with the application. One thing though, state laws vary considerably on this issue, so check out the Landlord/Tenant laws in your state. Better yet, join the local Apartment Managers Association and get some sage advice about whether you can collect it and how much.
Bottom line? Never, never, never rent your real estate to anyone you haven't checked out. Period. That's some of the best advice you'll ever get in this business. No matter how tempting it is when your vacant unit is crying "Take The Cash", and the smiling applicant is counting out the $20's and wants to move in tomorrow, proceed with extreme caution. Those who have to move in "now" are usually sleeping in the car or dealing with some kind of problem in the housing category, either of which is extremely bad news for the next landlord. Do a little leg work and find a credit reporting service. When your next vacancy comes up, you can take the hassle out of choosing your renter.
"...It was worth every penny, an EXCELLENT book" - Ruben Alvarado, FL
"...Incredible seller and fabulous material. The very best. Thanks a million!" - Gary Poplowski, TN
"...A MUST HAVE book for landlords! Worth it's weight in gold." - stonefoxie, Ebay
"...I love your book! Can't put it down. I have felt like a loner, the bad guy, I can relate to a lot of the examples in the book" - John Kolb, FL
POST SCRIPT TO THE ABOVE: Can't find a credit reporting service? Not to worry. Go to my oft-mentioned "Rental Property Reporter" site at www.rentalprop.com, and click on "Order Credit Reports on Prospective Tenants". Check it out, they have a deal with RealChek America to provide the kind of credit checks we need. I have no vested interest, but my book is listed on the RRR order page.
"...Wish I had this years ago before I bought the rentals." Margo French, FL
"...You just keep adding more and more to the book. It's going to be an even greater value." - Robert Cain, Editor and Publisher, The Rental Property Reporter