Property management companies know that tenant screening a big part of ensuring a smooth rental tenancy. Without screening tenants properly you may be setting yourself up for a rough rental term. Many renters ask why their credit needs to be checked when renting out a property. There are many reasons that property management companies perform this check, and rental property owners who manage their owner rentals should also be performing this check.

It would be nice to just assume that your applicant is who they say they are, however you should not assume this. Credit reports tie together name, social security number, previous residences, and payment history for credit cards and student loans.  The credit check report also lets a property management company or landlord know how much debt someone has, which can have an enormous affect on their ability to pay rent. No matter the income or job type of the applicant, it’s important to understand the debt side of their life.  Another thing a credit report will show is the renter’s payment history and if they miss payments for their bills. Every credit card company, loan issuer, or collections agency has kept the credit bureaus aware of the renter’s financial payment history.

If you are going to perform credit checks do not accept personal credit reports from individual applicants. Usually in the form of computer printouts, these reports can easily be tampered with. Property management companies likely have one credit check company they work with and trust to provide accurate credit checks.

from FINDPROPERTYMANAGER.COM