Checking credit scores

3 Replies

I am collecting applications for my second rental property.

Curious if checking credit is ALWAYS a good idea?

On my previous rental I did not charge an application fee nor did I check any credit scores. Am I asking for trouble?

Unless you have a D class property (maybe C) you are definatly taking a major risk not checking credit assuming you understand and know how to evaluate it. If you do not know how to interpret a credit report it is relatively useless. It is also a excellent screen tool to eliminate applicants by establishing a minimum score requirement. 

The score itself is a summery of a indivulaes past credit history which indicates the percentage chance of that individual defaulting on a debt (rent).  

As Thomas said, I would certainly check credit if your property is A, B, or C class! I would recommend pulling a comprehensive report where you can see their accounts and payment history.