Background and Credit Checks

1 Reply

Greetings all!

First off, first time posting in the forums and novice in REI......for now. Looking for some 'quick tips'

Closing on my first property in nine days. I've been doing due diligence and then some and have virtually everything in line. Couple of outstanding questions if anyone would be so kind as to advise.

1:  Does anyone have a suggestion on a credit/background check vehicle that is simple and accurate? Specifically how does anyone and everyone who has used mysmartmove like it?

2: My property is a duplex with one vacant 2 bedroom and one occupied by a young family of four (two boys under three years old) that have never missed a payment but their rent is easily 100+ below market. The current tenants are month to month based on a very simplistic lease from 2010 and have never had a rent increase.  What would you all suggest I do with my inherited tenants?

Thanks in advance all!

Gavin,

Since your tenants are month to month, you should have the ability to change their tenancy on that period (in one month). You will need to check with the local laws. I would determine how they are treating the property, and why unit 2 is vacant. If you find out that the family is up until 3am partying every night, then out they go. If they are a relativity quiet family that keeps decent hours and takes care of the place, then keep them, and if needed hold the rent for a period of time. If you make improvements to the property, it's always easier to justify a rent increase. 

I utilized my real estate person to show the property, write the leases and pull credit/background. They screened tenants based on my written criteria for that process. I got to examine all the evidence and approve or disapprove the potential tenants. It cost me 1/2 months rent, but for me it was worth it. Basically, my agent did the legwork, and I did the analysis. 

Hope that helps a bit.

Good Luck!

Jim

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