7 Steps to Great Applicants
- Application Fees
- Credit Reports and Credit History
- Do the social security number and driver's license numbers match on the creditreport match up with the numbers on the application?
- Do the addresses on the credit report match up with the address for rental history on the application? This is a good way to catch a person that is hiding problems they had with a landlord.
- Does the applicant carry debt balances that might impair their ability to pay the rent? If credit card balances exceed 4 months income, it is a good idea to make sure the rent amount is one-fourth (or less) of the applicants monthly income rather than one-third.
- Medical collections
- Paid collections
- Credit problems that are 5 years old or more (where new, good credit has been established)
- Defaulted student loans
- Other screening services
- Megan's Law notice
- Checking RENTAL history
- Verifying income
- Visit applicants current residence
A credit report tells you volumes about a person's character when it comes to keeping their financial commitments. It is a bad business decision to accept nice people with bad credit. If the credit report reflects too many problems, decline the applicant. See: DECLINING AN APPLICANT Be sure to check the following when you receive the credit report:
When everything else about an applicant is positive, we sometimes approve them with one or more of the following credit blemishes if there is a reasonable explanation:
People that have not paid their phone or power bills create an unacceptable risk and of course, the black kiss of death is a collection from a property manager / landlord.