Information To Be Aware Of When Requiring A Credit Check On Prospective Tenants
When you decide to rent, be aware that credit checks are standard nowadays. Credit checks consist of the landlord calling previous landlords where you have rented, or calling your employer to find out about your employment history. A landlord may hire an agency to run a credit check on you.
Credit checks help landlords to find the perfect renter. It helps them weed out those who may cause issues down the road. A credit check helps minimize any potential risk that may form.
When you rent, you need to disclose certain information in order to perform a credit check. Often this includes full name, date of birth, current address, and social security number.
When performing a credit check, the landlord has to inform the prospective tenant that it is going to be done. Usually, it is disclosed on the application with an area where the prospective tenant will sign as indication of consent to the credit check.
The consent form for the credit check can be found on the application, or as a separate release form. Either way, the applicant needs to be aware of the credit check and needs to sign the consent form indicating they are aware of the credit check.
Quite frequently, due to time constraints, most property owners will hire a specialist company to do the check. This can be costly, and often the property owner will pass this cost on to the potential tenant.
The agencies that provide credit check services either charge per report or require a membership fee that covers everything. Aside from the standard credit report, these agencies look into and provide employment history, criminal history, rental payment history, evictions, bankruptcies, and other relevant information.
To comply with the Fair Credit Reporting Act, landlords must inform applicants in writing if they fail to meet eligibility requirements to rent the property. They don’t need to disclose the exact reason for rejection as long as it is stated that the decision was made as a result of the credit check.
The individual has been providing advice with respect to personal finance for the last two years. Moreover, this author takes pleasure in writing with respect to NYC real estate, like Chinatown rentals as well as Lincoln Center apartments.