As much as I recommend using a third-party professional property manager. People don’t listen to me and insist on saving a few bucks and being the landlord. If that is the way you want to go then at least screen your tenants.
Introducing the Full-service tenant screening at a discounted rate off the normal $40.00 Package – With Promo Code “SPCF35”
Package to include:
• Credit (Detailed VS. Scorecard attached) (Sample Download)
• Nationwide Criminal with SSN Verification and Alias Search (Sample Download)
• 50 state sex offender search automatically
• Nationwide Eviction Search (Sample Download)
As per credit bureau compliance you do need authorization from the tenant to be able to access their credit.
Please click on the link to access the website – There are also step by step instructions attached on how to order reports. If you require the FULL details of a credit report an onsite inspection is required by the credit bureaus (the form has been attached). Without the inspection, you will receive the credit SUMMARY. (Pass/Fail ScoreCard)
Criminal and eviction reports are primarily a NAME match and do not use SSN information to source findings. Look for the middle name or initial and DOB if provided. Eviction and Criminal results can also be cross-referenced with the previous address information from the SSN Verification. The PASS/FAIL recommendations for the SCORECARD Report are currently set at what is considered “Industry Standards”. For more information about SCORECARD pass/fail criteria please give us a call.
Charge-off vs Collection
A charge off is a delinquent account that has been “written off” the creditor’s books (usually for tax purposes). The creditor takes a tax deduction for the loss, and no longer attempts to collect the debt from the consumer.
A collection is an account that is delinquent and has been sold (usually at a discount) to a collection agency. The consumer now owes the collection agency, not the original creditor for the debt.
The scoring system tries to identify bad actors with the following parameters (Sample Download):
INCOME TO RENT: Fail below 3.00 to 1
INCOME TO DEBT: Fail below 2.00 to 1
INCOME TO DEBT INCL RENT: Fail below 1.50 to 1
CREDIT SCORE: PASS above 600…FAIL below 500…CONDITIONAL between 500/600
DELINQUENT ACCOUNTS (24 months): Fail above 5
COLLECTION/CHARGE OFF (24 months): Fail above 2
BANKRUPTCY RECORDS: Fail if has BK within 4 years
These are ONLY recommendations and are not meant to influence your decision, which should be based on the actual RESULTS numbers and YOUR acceptable requirements in a prospective tenant