Checking your credit score can be done at any one of the three credit bureaus Experian, Equifax or Trans Union. Each bureaus office FICO credit scores using the formula developed by Fair Isaac but the difference is each give their score a different name. Equifax is known as the Beacon, TransUnion; Empirica and Experian go by Experian/Fair Isaac Risk Model.
To complicate matters further each bureau will give a different score due to the bureaus not sharing data. One credit agency may use more account information than another, using details such as the type of account, payment history or credit limits and balances due. This reflects a different score.
Due to such differences, it is useful to obtain reports from each bureau. Most loan companies will obtain all three but work from the average number. It will pay off to monitor your credit report throughout the year making corrections when necessary. Obtain new credit sparingly.
For additional information on this and other renting articles, please visit our web site at http://www.mrpmrentals.com/
Your Boise Property Management Rental Resource
Showing posts with label tenant screening. Show all posts
Showing posts with label tenant screening. Show all posts
Sunday, August 1, 2010
Sunday, May 16, 2010
How to improve your credit score
1. Don't apply for lots of credit cards. A credit inquiry can lower your credit score by five points.
2. Requesting your personal report won't hurt your score.
3. Avoid applying for credit cards from companies that don't set a spending limit or won't report your limit to the credit bureaus.
4. Don't cancel credit cards. Keep accounts open to ensure a longer credit history. If you can’t afford the monthly payment pay it off and stop using the credit card.
5. Limit the percentage of available credit you use to no more than 30% of your net monthly income. Paying off the amount each month will still reflect the amount charged and excessive spending will hurt your credit score.
6. If you don't have a credit history, start one by obtaining a secured credit card and managing it responsibly.
For additional information on this and other renting articles, please visit our web site at www.mrpmrentals.com.
Your Boise Property Management Rental Resource
2. Requesting your personal report won't hurt your score.
3. Avoid applying for credit cards from companies that don't set a spending limit or won't report your limit to the credit bureaus.
4. Don't cancel credit cards. Keep accounts open to ensure a longer credit history. If you can’t afford the monthly payment pay it off and stop using the credit card.
5. Limit the percentage of available credit you use to no more than 30% of your net monthly income. Paying off the amount each month will still reflect the amount charged and excessive spending will hurt your credit score.
6. If you don't have a credit history, start one by obtaining a secured credit card and managing it responsibly.
For additional information on this and other renting articles, please visit our web site at www.mrpmrentals.com.
Your Boise Property Management Rental Resource
Monday, February 15, 2010
A Lending Decision
Having properties for rent and the market a bit soft makes it important to locate a new tenant as fast as possible. With properties in top condition and lowered rents in place we were ready to go. With thoughts of filling some vacancies we advertised in several local hot spots and soon received a call to show a property to a woman and her child. She wandered through the first apartment then the second, returning to the first. She was quiet at first, but then began discussing the home with a friend that came along as support. They discussed where to place furniture and how wonderful the yard would be for the child to be able to go outside and safely play and for her to do some gardening.
She decided to apply for the property. After an hour we had a prospective tenant with a completed application and well on our way to filling a vacancy. This was exciting.
Returning to the office the screening process began. The first thing was to obtain a credit report. It’s on our website and spelled out on the rental application we do tenant screening on every adult applicant. We require a through screening be done and charge a fee to the tenant for that service. Tenant screening is very important and every landlord or property manager should either do it themselves or hire a company to verify a prospective tenant’s credit worthiness, rental history, criminal background and general character of the applicant. It’s a bad idea to lease to anyone with too much debt or bad debt or has any negative findings in other areas of the process. Those are a landlord or property managers golden rule or at least should be.
In all the years of working in property management and conducting tenant screening, a credit report has always included information whether it is a minor or major item of credit or comment there has always been something on a credit report. This applicant was 30 years old with a child; it’s assumed some type of credit would appear on this report. To our amazement and disbelief she had no credit. She was nonexistent in the world of credit. What should be done when accepting or denying a prospective tenant and their ability to rent this property?
This is what was determined. Our policy is to have a minimum credit rating and to demonstrate the ability to pay rent with any and all utilities or fees during occupancy. Also, they must come with a good record in all other areas. But, the credit report has always been a major area to weed out the keepers and rejects so to speak. Where does this applicant land with this issue?
We determined without a credit history we had no way to determine her ability to pay. Even obtaining raving reviews from the current landlord, friends and family the problem remained as to her credit worthiness. It doesn’t mean she would be a bad or good tenant, it means we cannot verify her credit worthiness. Also, if we indeed rented to her and later went into default for rental payments, we would not be able to locate her to collect past due payments. In order for us to offer tenancy, she would need to apply for credit. It may be necessary for her to have someone cosign on her behalf, of which we don’t accept, or be added to a joint account for a period of time. In a short time she will have a credit history upon which to base her credit worthiness and be a great candidate for a new rental.
For additional information on this and other renting articles, please visit our web site at http://www.mrpmrentals.com/
Your Boise Property Management Rental Resource
She decided to apply for the property. After an hour we had a prospective tenant with a completed application and well on our way to filling a vacancy. This was exciting.
Returning to the office the screening process began. The first thing was to obtain a credit report. It’s on our website and spelled out on the rental application we do tenant screening on every adult applicant. We require a through screening be done and charge a fee to the tenant for that service. Tenant screening is very important and every landlord or property manager should either do it themselves or hire a company to verify a prospective tenant’s credit worthiness, rental history, criminal background and general character of the applicant. It’s a bad idea to lease to anyone with too much debt or bad debt or has any negative findings in other areas of the process. Those are a landlord or property managers golden rule or at least should be.
In all the years of working in property management and conducting tenant screening, a credit report has always included information whether it is a minor or major item of credit or comment there has always been something on a credit report. This applicant was 30 years old with a child; it’s assumed some type of credit would appear on this report. To our amazement and disbelief she had no credit. She was nonexistent in the world of credit. What should be done when accepting or denying a prospective tenant and their ability to rent this property?
This is what was determined. Our policy is to have a minimum credit rating and to demonstrate the ability to pay rent with any and all utilities or fees during occupancy. Also, they must come with a good record in all other areas. But, the credit report has always been a major area to weed out the keepers and rejects so to speak. Where does this applicant land with this issue?
We determined without a credit history we had no way to determine her ability to pay. Even obtaining raving reviews from the current landlord, friends and family the problem remained as to her credit worthiness. It doesn’t mean she would be a bad or good tenant, it means we cannot verify her credit worthiness. Also, if we indeed rented to her and later went into default for rental payments, we would not be able to locate her to collect past due payments. In order for us to offer tenancy, she would need to apply for credit. It may be necessary for her to have someone cosign on her behalf, of which we don’t accept, or be added to a joint account for a period of time. In a short time she will have a credit history upon which to base her credit worthiness and be a great candidate for a new rental.
For additional information on this and other renting articles, please visit our web site at http://www.mrpmrentals.com/
Your Boise Property Management Rental Resource
Sunday, January 31, 2010
LOCATING A GOOD TENANT
Use a home rental application collecting the required information to perform a complete tenant screening process. The fee for this service is typically charged to the tenant.
Engage the services of a reputable tenant screening company.
Order a complete report, including credit history and score, tenant history, employment verification, eviction search and nationwide criminal search. In most cases, the tenant pays the fee for this service.
Set your boundaries and policies before attempting to rent your property. Don’t be a charity for the many stories you are apt to hear. Rent to financially stable, good rental history, clean background persons. Do not make exceptions.
Make your expectations known clearly and up front before making an offer to rent. Do you allow pets, inside or outside smoking, date the rent is due and payable, late fees, tenant lease term, yard care, guests, payment of utilities. Each one of these items and others you may include must be provided in writing, signed and agreed to by all parties. No exceptions can be made to this very important policy.
Use a detailed form as a move in condition. This form is to note each and every defect the property has prior to moving in a tenant. You can go through the property with the tenants or allow them to fill out the form sending it to you within a set time limit. Take photos or a video of the property showing the defects along with the move in form. These items can be of great assistance if you end up in court. Save every piece of documentation.
If the renting process seems to overwhelming hire a property management company to compete the renting process for you. Inquire in your area, locating one best suiting your needs.
For additional information on this and other renting articles, please visit our web site at http://www.mrpmrentals.com/
Your Boise Property Management Rental Resource
Engage the services of a reputable tenant screening company.
Order a complete report, including credit history and score, tenant history, employment verification, eviction search and nationwide criminal search. In most cases, the tenant pays the fee for this service.
Set your boundaries and policies before attempting to rent your property. Don’t be a charity for the many stories you are apt to hear. Rent to financially stable, good rental history, clean background persons. Do not make exceptions.
Make your expectations known clearly and up front before making an offer to rent. Do you allow pets, inside or outside smoking, date the rent is due and payable, late fees, tenant lease term, yard care, guests, payment of utilities. Each one of these items and others you may include must be provided in writing, signed and agreed to by all parties. No exceptions can be made to this very important policy.
Use a detailed form as a move in condition. This form is to note each and every defect the property has prior to moving in a tenant. You can go through the property with the tenants or allow them to fill out the form sending it to you within a set time limit. Take photos or a video of the property showing the defects along with the move in form. These items can be of great assistance if you end up in court. Save every piece of documentation.
If the renting process seems to overwhelming hire a property management company to compete the renting process for you. Inquire in your area, locating one best suiting your needs.
For additional information on this and other renting articles, please visit our web site at http://www.mrpmrentals.com/
Your Boise Property Management Rental Resource
Saturday, November 14, 2009
How to Screen a Prospective Tenant
When accepting a rental applications take some simple steps in tenant screening to save time, money and agony. Be sure the following information is collected on your rental application.
1. References: Require your rental application to ask for references both personal and rental references for at a minimum of the past three years. Checking this information can easily provide information into the type of person you are dealing with.
2. Income and Employment: The tenant’s monthly income should be three times the monthly rent Meaning: If the rent is $500 per month, their income should be $1500 per month take home. Verify their income is a permanent source and not part-time or temporary. If there is a roommate situation property management agents require each tenant to qualify financially with their own income. Management companies have varying policies for income qualifications and should be clearly spelled out in your contract agreement.
3. Evictions: Each tenant should have a clean record. If there is an unacceptable record refuse to rent to them. Period. Make a firm policy and apply it to all tenants without question.
4. Criminal Records: Always check a tenant's criminal record. If there is an unacceptable record refuse to rent to the. Period. Make a firm policy and apply it to all tenants without question.
5. Identification: Have each tenant produce a photo ID such as a valid driver’s license and a valid credit card or preferably their social security card. Obtain a clear photocopy of each piece of ID for your records. Why? As the property manager there is a genuine need to obtain a photo of the person(s)occupying your property. Without a photo ID you may not recognize the person(s) who initially applied to rent your property and if there comes a time for say an eviction, you will need to know what each tenant looks like to have them both legally and easily served or to locate them in a courtroom setting.
6. Collections: Check credit reports for bad payment history, tax liens, collections, derogatory or disparaging remarks, or type and number of late payments. Ideally, the credit report should be clean with no late payments and no collections. Medical issues are also listed but may or may not have any real influence on their true credit history.
7. Verification: Verify that each person moving into your rental is the same person you received an application, credit report and were screened for occupancy. Refer to the identification material for additional verification.
8. Sex Offender: Each applicant should be checked out on the states list as a sex offender or predator.
Each adult that will occupy the property must sign the lease agreement. This should be done together and before anyone is given permission to occupy the property.
For additional information on this and other renting articles, please visit our web site at http://www.mrpmrentals.com/
Mountain Ridge Property Management
Your Property Management Source
1. References: Require your rental application to ask for references both personal and rental references for at a minimum of the past three years. Checking this information can easily provide information into the type of person you are dealing with.
2. Income and Employment: The tenant’s monthly income should be three times the monthly rent Meaning: If the rent is $500 per month, their income should be $1500 per month take home. Verify their income is a permanent source and not part-time or temporary. If there is a roommate situation property management agents require each tenant to qualify financially with their own income. Management companies have varying policies for income qualifications and should be clearly spelled out in your contract agreement.
3. Evictions: Each tenant should have a clean record. If there is an unacceptable record refuse to rent to them. Period. Make a firm policy and apply it to all tenants without question.
4. Criminal Records: Always check a tenant's criminal record. If there is an unacceptable record refuse to rent to the. Period. Make a firm policy and apply it to all tenants without question.
5. Identification: Have each tenant produce a photo ID such as a valid driver’s license and a valid credit card or preferably their social security card. Obtain a clear photocopy of each piece of ID for your records. Why? As the property manager there is a genuine need to obtain a photo of the person(s)occupying your property. Without a photo ID you may not recognize the person(s) who initially applied to rent your property and if there comes a time for say an eviction, you will need to know what each tenant looks like to have them both legally and easily served or to locate them in a courtroom setting.
6. Collections: Check credit reports for bad payment history, tax liens, collections, derogatory or disparaging remarks, or type and number of late payments. Ideally, the credit report should be clean with no late payments and no collections. Medical issues are also listed but may or may not have any real influence on their true credit history.
7. Verification: Verify that each person moving into your rental is the same person you received an application, credit report and were screened for occupancy. Refer to the identification material for additional verification.
8. Sex Offender: Each applicant should be checked out on the states list as a sex offender or predator.
Each adult that will occupy the property must sign the lease agreement. This should be done together and before anyone is given permission to occupy the property.
For additional information on this and other renting articles, please visit our web site at http://www.mrpmrentals.com/
Mountain Ridge Property Management
Your Property Management Source
Tuesday, November 10, 2009
Tenant Writes Bad Check
As a property manager or owner you receive rent checks every month and for the most part have had no problems. Until now, this month you receive a bounced check. You find yourself squirming with fear and agitation at the thought of a bounced rent check then having to turn to the renter in an attempt to recoup the funds.
Your first step should be in completing adequate tenant screening to ensure this is not a habit, but one of an error of kinds. Mistakes do happen. Secondly, add to your lease agreement a NSF fee for any returned bad checks and for all rents and fees from that time on must be paid with guaranteed funds cash or money order. We recommend around $25.00 NSF fee in addition, to late fees or other bank fees. The bank will then charge their NSF in addition to the cost of the check.
Okay, you have your bases covered now what?
First, contact the bank asking for the check to be run through again. Most banks run non-sufficient fund checks twice but it doesn’t hurt to ask for clarification. Then, contact the renter as this could be a simple error and payment is a phone call away. Also, collect this rent in cash and demand the NSF fee stated in your lease be included. Don’t back down, enforce your lease.
If the funds are still not in the account and your tenant isn’t cooperating, take the check to the bank of the renter. Present the check to the cashier asking how much they can cash the check for. Suppose the renter wrote the check for $600 but the account has only $400. You can request the $400 for payment of the check. Banks aren’t wild about doing this, but will if you insist on payment. There is a risk in doing this, as the renter may add more funds to the account and you will miss collecting them and receiving payment in this manner is perceived as payment in full for the check.
Another way to collect funds is called “Submitting a Collection Item”. Tellers may not be aware of this process so you will need to speak to the bank manager. There is a fee for this service usually around $15.00. The process is done like this. When you hold a check for collection, much like the process the banks do, you are given top priority for any funds that may be added to the account.
Suppose, just enough funds are added to the account to cover a check for a smaller amount, the bank will not pay that check but will hold all the funds in the account until the full amount of your check is collected and you are paid. Any remaining funds will then be applied to subsequent checks. Many banks notify the account holder their account is being held for collection, but most frequently, renters don’t know until after the fact, and after subsequent checks have bounced.
For additional information on this and other renting articles please visit our web site at http://www.mrpmrentals.com/
Mountain Ridge Property Management
Your Property Management Source
Your first step should be in completing adequate tenant screening to ensure this is not a habit, but one of an error of kinds. Mistakes do happen. Secondly, add to your lease agreement a NSF fee for any returned bad checks and for all rents and fees from that time on must be paid with guaranteed funds cash or money order. We recommend around $25.00 NSF fee in addition, to late fees or other bank fees. The bank will then charge their NSF in addition to the cost of the check.
Okay, you have your bases covered now what?
First, contact the bank asking for the check to be run through again. Most banks run non-sufficient fund checks twice but it doesn’t hurt to ask for clarification. Then, contact the renter as this could be a simple error and payment is a phone call away. Also, collect this rent in cash and demand the NSF fee stated in your lease be included. Don’t back down, enforce your lease.
If the funds are still not in the account and your tenant isn’t cooperating, take the check to the bank of the renter. Present the check to the cashier asking how much they can cash the check for. Suppose the renter wrote the check for $600 but the account has only $400. You can request the $400 for payment of the check. Banks aren’t wild about doing this, but will if you insist on payment. There is a risk in doing this, as the renter may add more funds to the account and you will miss collecting them and receiving payment in this manner is perceived as payment in full for the check.
Another way to collect funds is called “Submitting a Collection Item”. Tellers may not be aware of this process so you will need to speak to the bank manager. There is a fee for this service usually around $15.00. The process is done like this. When you hold a check for collection, much like the process the banks do, you are given top priority for any funds that may be added to the account.
Suppose, just enough funds are added to the account to cover a check for a smaller amount, the bank will not pay that check but will hold all the funds in the account until the full amount of your check is collected and you are paid. Any remaining funds will then be applied to subsequent checks. Many banks notify the account holder their account is being held for collection, but most frequently, renters don’t know until after the fact, and after subsequent checks have bounced.
For additional information on this and other renting articles please visit our web site at http://www.mrpmrentals.com/
Mountain Ridge Property Management
Your Property Management Source
Thursday, September 10, 2009
The Professional Deadbeat
A Realtor friend was recently involved in the sale of a duplex. The owner of this rental property was also involved in tenant eviction proceedings against one of the tenants. The tenant had been warned various times for violations of the lease agreement. He had unauthorized occupants living at the property and constantly played loud music, the occupants and guests parked their cars on the lawn and were trashing the duplex. To top it off no one living at this property had paid rent. The owner won the eviction and sold the property.
Interestingly, a few months later my Realtor friend was requested to preview a rental property across town that the owner wanted to sell. In the conversation about the property the owner was questioned why he wanted to sell such a great rental property. He responded he was tired of dealing with the issues that arise with having tenants and rental property. This is a pretty standard reply Realtors receive when previewing a rental property. But in this case, the reason was going to become more apparent. After inspecting the property more closely it was discovered the renter from the first rental property was occupying one of this landlords apartments.
In a short time period, this deadbeat tenant had trashed this landlord's rental and was also delinquent in the payment of rent. This same deadbeat renter had made his way into both of these properties and had caused extensive damages in addition to costing the owner several months rent.
These destructive deadbeat tenants move from one rental property to the next moving from one unsuspecting landlord to the next each falling victim to their deadbeat behaviors over and over again. The only way a rental owner can protect themselves and their rental property is to do the homework required of every landlord no matter where they live, how large or small the community.
This cycle of abuse and financial damage can be prevented with a landlord's upfront due diligent tenant screening of each potential renter applying to their property. The cost of tenant screening is cost effective and minimal especially in comparison to the cost of lost rent and damages. Charging the rental applicant the fees charged to complete tenant screening will also help to discourage the deadbeat renters from attacking your rental property.
Follow these basic rules:
1. Require each adult tenant to fill out your rental application. Completely.
2. Require each adult tenant pay an application fee which totally covers the expense of tenant screening.
3. Require each adult tenant provide you with a clear photocopy of a current drivers license.
4. Never allow anyone to move into the property until each applicant has been approved to occupy the property.
5. Require each adult tenant (roommates) to qualify to rent your property individually. If one tenant moves, the remaining tenant has the ability to pay all of the rent and expenses.
6. Be aware of and understand your states Landlord Tenant Laws.
Set your standard requirements for renting any of your rental properties. Credit limits, employment income, legal issues, smoking, animals etc. Set your policy standards and require your tenants to uphold those standards with no exceptions.
For additional information on this and other renting articles please visit our web site at www.mrpmrentals.com
Interestingly, a few months later my Realtor friend was requested to preview a rental property across town that the owner wanted to sell. In the conversation about the property the owner was questioned why he wanted to sell such a great rental property. He responded he was tired of dealing with the issues that arise with having tenants and rental property. This is a pretty standard reply Realtors receive when previewing a rental property. But in this case, the reason was going to become more apparent. After inspecting the property more closely it was discovered the renter from the first rental property was occupying one of this landlords apartments.
In a short time period, this deadbeat tenant had trashed this landlord's rental and was also delinquent in the payment of rent. This same deadbeat renter had made his way into both of these properties and had caused extensive damages in addition to costing the owner several months rent.
These destructive deadbeat tenants move from one rental property to the next moving from one unsuspecting landlord to the next each falling victim to their deadbeat behaviors over and over again. The only way a rental owner can protect themselves and their rental property is to do the homework required of every landlord no matter where they live, how large or small the community.
This cycle of abuse and financial damage can be prevented with a landlord's upfront due diligent tenant screening of each potential renter applying to their property. The cost of tenant screening is cost effective and minimal especially in comparison to the cost of lost rent and damages. Charging the rental applicant the fees charged to complete tenant screening will also help to discourage the deadbeat renters from attacking your rental property.
Follow these basic rules:
1. Require each adult tenant to fill out your rental application. Completely.
2. Require each adult tenant pay an application fee which totally covers the expense of tenant screening.
3. Require each adult tenant provide you with a clear photocopy of a current drivers license.
4. Never allow anyone to move into the property until each applicant has been approved to occupy the property.
5. Require each adult tenant (roommates) to qualify to rent your property individually. If one tenant moves, the remaining tenant has the ability to pay all of the rent and expenses.
6. Be aware of and understand your states Landlord Tenant Laws.
Set your standard requirements for renting any of your rental properties. Credit limits, employment income, legal issues, smoking, animals etc. Set your policy standards and require your tenants to uphold those standards with no exceptions.
For additional information on this and other renting articles please visit our web site at www.mrpmrentals.com
Subscribe to:
Posts (Atom)