What is the easiest way to get credit reports on potential tenants?

[brownnugen]

Hi, I have couple of rentals and my dad has a couple as well. My dad has a couple of potential of tenants (who found the house advertised on local Craigslist) that he wants to do a credit/criminal check on. The potetial tenants signed a rental application, authorizing a credit check. I never personally went through the steps of running a credit check on tenants (somebody else did) so I thought that it would be a pretty easy process. But when I went to one of the sites that did the reports, I found out that as an individual owner, I had to submit:
1. Clear copy of your Driver's License
2. Current Voided check or Bank Deposit Slip
3. Copy of Phone Bill for the contact number you have provided us
4. Two proofs of ownership for the Properties you are renting

Since the potential tenants are trying to rent my father' house (not mine), would I be able to do checks on them? Wouldn't I be considered an "agent" for the owner?

If I couldnt' do it as an individual owner, would I have to do it as a management company? According to the website, I would have to provide: 1. Clear Copy of Driver's License for the Individual responsible for this account
2. Copy of a Telephone Bill for the contact number provided to us (dated within the past six months)
3. A voided check OR Bank Deposit Slip
4. A letter on company letterhead stating your "permissible purpose" (your reason for pulling credit reports)
5. Copy of a Current Business License (or one of the following: articles or incorporation, LLC papers, certificate of operation) If you are a Realtor: you may send a copy of your realtors license in place of the business license, etc.
6. Proof of membership in an Apartment Association OR Three previously filled out rental apps
7. A signed list of all your rental properties.

So, after all this text, my question is, what is the easiest way to get credit reports on potential tenants?

[herbster]

Ask them for it.

[brownnugen]

The potential tenants already signed a rental application, giving permission to do a credit check. Is it "normal" practice to just ask for a credit report? I thought it was the role of the landlord to do it? I'm a little green, so sorry if this comes across as questioning, I just don't know.

[herbster]

I'm just a little green to but have studyed a lot, and just about everything I have read and the courses i have taken say Ask Them For It. It makes sense,its the easiest and cheapest as you asked.
As for all the additional info. the credit companys are asking you for just wait for a few more members on this forum to respond to you.
By the way credit reports are free to everyone once a year and scores cost 5-6 bucks. I like AnnualCreditReports.com the best myself.
Personally if the tenants are not willing to supply then look for one that will.
hope this helps. herbster

[Debbie]

Great job for having the rental applications!

For rental property(ies), smart landlords do the "due diligence".

Read this link: http://www.magicbullets.com/forum/showthread.php?t=8651&highlight=credit+check

After you read the mentioned link, come back for further questions (if any). I or other MB members will help you out.

[Debbie]

I'm just a little green to but have studyed a lot, and just about everything I have read and the courses i have taken say Ask Them For It. It makes sense,its the easiest and cheapest as you asked.
As for all the additional info. the credit companys are asking you for just wait for a few more members on this forum to respond to you.
By the way credit reports are free to everyone once a year and scores cost 5-6 bucks. I like AnnualCreditReports.com the best myself.
Personally if the tenants are not willing to supply then look for one that will.
hope this helps. herbster

I'm not quite clear what you mean by "Ask Them For It".

Are you talking about having potential tenant providing their own report (via annual credit report)? If yes, my response would be a big fat "NO!".

Why not? It is waaaaaaay too easy to alter the information. It is very common for potential tenants to doctor their own credit reports. I don't know what courses and books you've read but that is not good common sense in reality.

It is imperative that you run the credit report yourself. Be sure to get the cash (not check, not money order, not cashier check) before you run the credit report.

BTW---I moved this thread to the Landlords In The House forum.

[brownnugen]

Deb, thanks for the information so far.

I understand the importance of running the credit check and getting the information from an independent party.

What I was specifically not sure about was whether "I" can run a credit report for my father, for a property that "he" owns?? I have several properties, so I know that I can register for an account as an individual owner. If I have an account, a copy of the rental application for his property (permission from potential tenants), and my father's blessing/request for me to run the check, would I be ok to go ahead and run it? Or do I have to sign up for a management type account?

I am just not familiar enough with the "rules" on it and don't want it perceived that I'm trying to do anything fishy....

[Debbie]

Since it's within the family, I see no reason why you can not run the credit check for your father. I don't recall seeing any fine print against it. All you need to do is ask your father's id & password and run them. It's like husband and wife team.

As a matter of fact, your father can easily call his account and include your name. Think of yourself as the "property manager".

If your father doesn't have the set up, all your father has to do is set up the account WITH you. This way, both of you have access to the account.

Did my answers helped?

[brownnugen]

Yeah, none of us have an account set up with any of credit check companies. I will need to find all the paperwork to set this up.

[Debbie]

Yeah, none of us have an account set up with any of credit check companies. I will need to find all the paperwork to set this up.

Yes, you would need all of the paperwork.

If you're going to use the tenant credit check that I use (in other thread), read up what type of papers you'll need before you call.

If you need help, let me know.