Spotting the best tenant is probably the most crucial factor in owning a profitable Eagle Rock rental home. For most landlords, the “right tenant” means someone who has an almost-perfect credit score. Tenant approval decisions are mostly based on the concept that if someone has a fantastic credit history, then that means they have a financially stable future. While credit scores are important, they don’t tell the whole story. A quality tenant could still be overlooked because all that is being seen is their credit score. Knowing what other factors to look for when screening applicants can help distinguish great tenants immediately.
When screening rental applicants, property owners are right to want to know what lies beyond the tenant’s financial situation. A credit report can present a whole lot of information that is not shown by someone’s credit score, information that an owner can use to figure out whether or not a tenant can make 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.
Even though a previous vehicle repossession or a credit card charge-off is a considerable issue for the majority of property owners, it is important to remember that when the Great Recession happened, a lot of families were affected. Something as uncontrollable as that has left them without jobs or homes, but have since recouped and got a new job and have maintained their credit accounts well. Or, perhaps a past medical emergency caused the applicant to lag on their medical expenses or student loan payments, but have since turned over a new leaf and made good financial choices afterward. In these kinds of circumstances, the score is not the only determinant instead of the tenant’s payment history over time. A few blunders in the past should not disqualify an otherwise right applicant.
To understand the applicant’s situation, even more, it’s always better to get as much information from the applicant that is not on the credit report itself. If the potential tenant has a good explanation for their lower credit score, such as those listed above, that may be a motive to keep them under consideration. 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 elaborate procedure, particularly for single-family rental homes in Eagle Rock. 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 Vision, we conduct a thorough screening on every applicant, from credit reports and beyond. Our property management professionals know what to look for, and how to select the perfect 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 818-233-8789.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
