For some landlords, the “right tenant” is someone with an almost perfect credit score. They base their tenant approval decisions on the notion that excellent credit history is an assurance of a financially stable future. While credit scores are important, they don’t tell the whole story. A landlord may pass up an otherwise great tenant if there’s a red flag put on their credit score. Education is essential when screening applicants as there are other identifiers to search for to find great tenants immediately.
When screening rental applicants, property owners are correct when they feel the need to investigate more about the tenant’s financial situation. A credit report can present a piece of comprehensive information beyond a mere credit score, data that an owner can use to gauge the likelihood of a tenant making their rental payments in full and on time. For example, late payments on an account that is now current can bring a credit score down but also shows the applicant is now paying their bills on time.
While an old vehicle repossession or a credit card charge-off is a huge deal breaker for most property owners, it is wise to also keep in mind that a lot of people were affected several years ago because of the Great Recession. It was not something that they could control; they may have lost their jobs or homes, but have since recovered and have gotten stable employment and kept up their credit accounts. Or, perhaps a prior medical emergency caused the applicant to be able to make their medical bills or student loan payments on time, but take into consideration the tenant’s payment history over the years. A few mistakes many years ago ought to not disqualify an otherwise qualified applicant.
To understand the entire situation, it’s crucial to take in as much information from the applicant that is not on the credit report itself. If the potential tenant has a valid reason for their lower credit score, such as those listed above, that may be a reason to keep them under contemplation. Also, property owners should always supplement an applicant’s credit report with references who can speak to their potential. If an applicant has a strong history of paying rent on time and a stable income, these factors may be better indicators of how they would do as a tenant than numbers on a credit report.
Tenant screening can be an involved process, especially for single-family rental homes in Tillmans Corner. Property owners usually want someone who will be a stable, long-term tenant, making the decision an even more critical one. At Real Property Management Azalea City, we accomplish a thorough screening on every applicant, from credit reports and beyond. Our property management professionals know what to look for, and how to choose the right tenant for every rental property we manage. If you would like to learn more about our screening process or would like to speak to someone, please contact us online or by phone at 251-345-6224.