Well I thank Monte for the backing but I thought I would just add a few other thoughts on this issue so that we can put it to bed.
Rule of thumb:
Credit scores and ratings tell one story but they dont tell all of the story. As some L.L.`s dont know because maybe they have not been involved with the eviction or collection process is that the credit bureau only "houses" so much information. Now what does this mean? This means that Revenue Canada, Health Care, 98% of Maintenance Enforcement across Canada, Provincial and High Court Judgments "dont get listed".
What this means guys is this, you can approve anyone based on credit however its the credit that tells me where I might want to look if I have further questions. Remember if an eviction has to take place and you have to enforce, you play ball with other creditors, if the big boys are owed money you see nothing.
I will leave you with this, a non-REIN member listed a file with our offices. I was a judgment issued by the (R.T.R.D.S) board in Alberta (Landlord program) for just over $5,000.00. The tenant was from Ontario, she ran his credit through RentCheck, got the score, got the credit, though financially tight the credit was perfect so she granted tenancy.
After the time of evicition, I made a few calls, well my Ontario friend (due to a false reference provided) had been sued 5 different times, all in Ontario, all for non-payment of rent, in fact a collection agency had done some leg work but had lost the debtor.
Now what this means is this and I use this example as the Ontario eviction process, there are many people that are smart, that know the system and use it to their advanatge hence the ENTIRE screening process is a big deal. Small landlords cannot be members of the credit bureau and they become targets.
My advice once again is this, pay someone that knows the tricks to do your screening. All it takes is one person to slip through the cracks and you may lose thousands. Is their a guarantee, nope, but knowledge of the games is always good, if my car breaks down it goes to a mechanic, there is no other argument to me.
Just be careful out there ladies and gentleman, its getting worse, the debts are getting bigger and they are getting harder to enforce.
Protect Protect Protect