Background Check on Tenant

4 Replies

I ran a background and credit check on a potential tenant. Credit came back great. Btwn 650-800 (no codes) but for background there were records of state income tax liens...what exactly is this and would you not rent to this person with that on their records?

@Jen H, What items other than tax liens were on the report? I would also want an explanation for the lien- were they the result of a failed business or a home foreclosure? Stay away from applicants who have liens like this and collections, judgements, unpaid utilities, etc.

Promotion
Avail
Landlording made easy.
Best-in-Class Platform for DIY Landlords
List unlimited units, screen tenants, draft and sign leases, and collect rent—all free.
Use Avail—Free!

Then he owes money, in this case to the Government. I'm not familiar with how the process works in that regard in the US, meaning whether it's easy to get that on your record simply because you didn't (fully) pay your taxes due or whatever. That would make that person a naughty boy/girl but I also know that there are always disagreements between a tax payer and the tax man. ;-) He might have simply contested a bill by his state government and ended up with that lien. The money will have to paid to get rid of that lien, yes, but so will your credit card to avoid bad credit. And yet nobody cares how high the credit card debt of a potential tenant is as long as the credit history is (pretty) clean... I would inquire with him about the nature of this lien and go from there.