Tenant’s Credit History is Important Too

Credit history is important when you applying for any loan as the lender will decide whether to approve your loan application by referring your credit history.

However, don’t think that credit history only applicable on applying a loan but it is also important when a tenant wanted to rent your property. Don’t believe me? Here is what the expert said

  • credit scores may be useful for creditors that have to justify their decision-making to other higher ranking bureaucrats or perhaps investors.
  • prospect’s overall credit picture, which is what the credit score depicts, but I am really more interested in why and how she got the score
  • For example, if our prospect lost her job and had to let her home mortgage go into foreclosure, her score will be ruined for years.
  • money management discipline she demonstrated before and after that tumultuous event. That will tell me more about the character of person than the score.
  • In my qualification decision table, I put the most weight on rental history.
  • know how long she lived in the same place, and how well she treated the propertyduring her stay. Did she pay her rent on time?
  • I am also interested in the tenant’s employment or source of income. Does she have a job? How long has she been employed by the same employer. What does her debt/income ratio look like? How stressful will it be for her to make the rent payments?
  • rental history and source of revenue are far more important considerations that indicate the probability that a prospect will become a good tenant.

Whether you are landlord or property manager, it is advisable to credit check on every prospective tenant whether they are qualify to rent your property. “How well she treated the property during her stay”, this is the most important thing that you’ll need to check on, because you don’t want to see they ruin your property after moved out right? So, be smart to choose a tenant and make sure you have gone through he/she credit history before pass your property into their hands.

WMAPROPERTY

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