how to pull tenants' credit and background checks?

Question

What services do you use to pull credit and background checks on applicants (potential tenants)? Can you use the same tools in multiple states, and are there any legal issues associated with pulling credit and/or background checks for potential tenants?

Thanks!

Corey Demuth · Answer

For everyone that lets tenants pull their own credit and send it to you, I must say I think that's a bad idea, sooner or later you're going to get a half-way computer literate tenant who will realize who simple it is to simply edit the pdf or other document and remove or change negative items...

Steve Crawford · Answer

Whether you do, or you don't.  Make sure you get the written consent of the applicant.  Hopefully, it is on you application somewhere.  Have to be in compliance with the Fair Debt Collections law.

Sarnen Steinbarth · Answer

I agree with Corey - allowing a tenant to bring their own report, to me, is no better than not having a report at all.

The good tenants will bring their real report.

The bad tenants will alter their report and it will look good.

You'll be left hoping you happen to find a good tenant.  Just like you would if you didn't get reports directly yourself.

Silvia B. · Answer

I agree with Jon. I used the Bigger Pockets Smartmove site and it works great. Very easy and the tennant has a sense of privacy since they do not have to give out their SS# to you. I think it is $25 for credit and background check. Plus it is considered a "soft hit" on their credit report so it's not held against them.

Matthew Peterson · Answer

I'm new to the board, but I have my prospective tenant pull their own credit report and email it to me in PDF format or fax it to me. That way I avoid telling them there is a $50 app fee. I just instruct them to go to annualcreditreport.com, which is the free report mechanism that the fed made the reporting bureaus participate in a few years ago. I just tell them to pick one of the 3 reports and print the detailed results for me.

Chris Calabrese · Answer

I use an online service called ClearScreening.  They make you go through a 30 minute training class on FCRA to set up your account, but don't require a home inspection like most of the other ones I found.  You can pull credit, background checks, evictions, etc. at a reasonable cost.

Sam Ferris · Answer

Waste of time. Guy has job today, dosn't tommorow. You wait for the perfect tenant and lose 3 who might have worked out. Meanwhile your property is empty.

Just get a 30 day deposit and be on top of your 3 day notice and you should be ok.

Bienes Raices · Answer

You should be able to pull the criminal for the county where the rental is (or where the applicant lives?) for free on your county clerks websites.

Some of the credit check companies make you have an onsite inspection done (for the room where you will be storing credit date), others don't.

Jon Holdman · Answer

Have a look at the BiggerPockets Tenant Screening Service.

how to pull tenants' credit and background checks?

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