Who Do You Use For Credit Checks?

Question

Who do you guys use for credit checks, background checks, and eviction checks?
Is there a company out there that does these for a set fee, without all the other fees, like monthly fees, or a set up fee?  I just have a couple of properties, so I really don't need to do these checks all the time.  So I'm not to keen on the idea of all those fees.

Any suggestions?

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I reside in Honolulu, Hi.  And Beachbum has helped me out a lot.  But like I said, most people here are charging $10-15 perperson.  And it doesn't seem to me like it could cover the cost, at least not at the prices I've been seeing on the internet.  Well, I guess, I just have to give it a try.

thanks!

Scott Ficek · Answer

Mac77
Just my experience, but I really don't spend a lot of time looking at their credit info.  I am just concerned if they have a lot of stuff in collections.  I am more concerned about evictions and any criminal activity.  That is why I use a service that gives me credit, criminal, and rental history.

Depending upon your clientele, those may not be a concern for you.

Richard F. · Answer

Yes.

I've been using Experian for the last several years. You can check their website, then Business Services > Small Business > Manage/Assess Credit >Consumer Credit Profile, then view the PDF Credit Profile Report and you will see the myriad of details included on their reports. Their E-solutions gives you instant online access to the reports.

Rich Schroeder · Answer

where do you set something like this up?  Directly with the big 3?

thanks, 
-Rich

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Thanks, that post is really great, and thorough.

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Thanks for the replies beachbum and scott.  They answered my questions, but now I have more.  What exactly am I looking for on the credit reports, other than their lates?  Also, should I be concerned about obtaining their credit score, or just the report will do?

PS Thanks  Beachbum for the heads up on the legislature, i'll keep my ears open.

Richard F. · Answer

YW-

I think it was pretty well covered here...

http://forums.biggerpockets.com/viewtopic.php?t=11134&highlight=

Richard F. · Answer

There is (at present!) no problem in charging a prospect for the actual cost of obtaining reports. Your cost will vary depending on who you use, and whether or not you operate as a business.  As a proper business, that utilizes credit information to make financial decisions, you pay business rates for this information. The last time I glanced at an invoice, our cost was $6 and change for single, and $9+- for joint accounts. If, OTOH, you use a commercialized site that is just "reselling" and repackaging a report from the big three, they take a cut....usually about $10 or more per individual. Of course, if you only need 2 or 3 per year, you may have no choice.

Locally, there is a "Rent Check" service, although I have no experience with them.

Be aware that there HAS been talk in the legislature regarding limiting or prohibiting application fees here, because there ARE a number of unscrupulous types charging obscene fees.

Richard F. · Answer

Learning to analyze and interpret the info on a credit report, in conjunction with the information obtained on the prospect's application and other supporting documentation is the BEST opportunity you have to select a good tenant, in ANY price range. Certainly, criminal info and prior references etc. are important, but IF they have some credit history, it can speak volumes. Of course, this assumes you are obtaining credit reports in a format that includes sufficient data fields. Not all credit reports are created equal...

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but how much is okay to charge to the potential tenants.  I've seen most landlords do have an "application fee" but it is usually about $10-15 person.  However, some of the tenant screening sights that I have come across, want $4.95-16.95 per each report, per person.  Well, that adds up, and it's not less than $15.  How are others able to do a simple $10 fee?  That's why I am trying to find a place that does do it for less, or one that doesn't have so much fees.  Some place have no monthly fees, but they have set up fees of $100.  Others have monthly fees + the cost of the reports.

How did you find your local company to do the screening?  Any specific words I should use to google and get good results?