Recommendations for Tenant Reporting

[PropertySolution]

Can anyone offer a name or website where a owner/landlord can check on a prospective tenant`s rental history.

For example, where I can put in the tenant`s name and it will bring up any tenant related history. Good or bad tenant, where they have lived or management companies they have had/has a unit with?

I have considered using credit reporting companies such as Equifax but the cost is just beyond my budget a the moment.

Thanks in advance.

 

[housingrental]

Get credit checks from companies like rentcheckcorp or tenantverificationservices
Other info gain through your own screening
Supplemental good/bad tenants lists aren`t going to be useful as no centralized source

 

[invst4profit]

You simply have to pony up the money if you want to be professional about running your business and frankly if you believe a credit check is beyond your financial means you are in the wrong business. This is a very high risk business when it comes to tenant selection. Not something you want to skimp on with money, time or effort.
Join TVS or any other credit check company and do it right. Pinching pennies in this business will put you
out of business in short order with only one bad tenant choice.

Good luck, I think your going to need it.

 

[PropertySolution]

So that would be a NO?

Credit checks are not the end-all solution to renter checks nor will they make or break a company single handedly as some might imply. Rather it is just another tool but with very limited information actually. I use do 20 or so credit inquires a month and almost all the information contained in the report was of very little help with the exception of past residents. But again, if you do all the other checks even this information can be found. And if the information on the application is sketchy or lacking it would have ended up in the rejected pile long before that point anyhow.

And as far as spare no expense when operating any aspect of your business is crazy talk!!! LOL That will kill you faster than 1 bad Tenant... IMHO. I doubt very much that any business owner would be operating without some kind of budget.

 

[Sherilynn]

Do you really think the cost of one bad tenant would be less than the cost of 20 credit checks? A professional tenant can cost thousands of dollars and can be even more damaging to your psyche. And many professional tenants would be discovered and avoided using a credit check.

As for the credit check companies, they must charge a fee because they incur expenses both to obtain the information and to ensure that the information is kept private. Charging a fee and/or requiring you to register as a member helps these companies do their own screening to be sure that credit information is used properly and legally (ie. protecting privacy).

If reducing expenses is your objective, then only check credit as the last part of the application process. Also, you could take a "deposit against rent" and use an "instant rental approval" form stating that the deposit is forfeit if any information on the application or other forms is found to be misleading or false.

Regards,
Sherilynn

 

[JoeRagona]

I for one use TVS as part of my screening process and report on my tenant pay habits each month to help other landlords good and bad.

My concern about you doing 20 credit checks if I`m reading this correctly, may be your filtering process. I am very diligent on my filtering (ask my team

) and I narrow down to the tenant I want THEN do a credit check. I`ve already decided whom not to choose from the questions and filtering before paying any money.

 

[PropertySolution]

I have just sent my application in to TVS. The prices they charge are more in line with what I was expecting to pay.

I would never do a CC on someone until I was completely finished with all the other checks I do. I also picked up a few more from suggestions by members here.

 

[creditinfocanada]

As per the comments directed i would like to further on some of the concerns drafted.

There are no credit bureaus or foreign bodies that allow access to bad tenant reporting. Thats right, NONE. As I stated to a perspective client today, there are a number of companies that allow access to run bureaus called CREDIT RE-SELLERS. TVS, RentChek are simply that. Now they may have a place where you can update your information about tenants but frankly your WASTING YOUR TIME. Why? Well simply if other people arent a member of the above-noted who is actually going to see what your listing, NOONE. Throw in the fact that their are many different companies that actually provide the RE-SELLING aspect throughout Canada, they all arent inter-linked, so if a person deals with RentChek and you deal with TVS how is that information going to be shared, it isnt and it will never be. The only way to report bad tenants is on the credit bureaus, no membership to that, well than most collections agencies can help you.

Remember this, credit is one step in screening a client and no matter what there is going to be cost involved. The credit bureau houses SOME information and not all and I ask you to re-read above, simply if you are not a member you cant list. Equifax and TransUnion make it absolutely difficult for smaller owners to become members because they "dont want you". They would much more deal with heavy volume listing companies, and smaller companies arent that.

So listing debts on TVS means little or nothing if anything its not worth your time. Find localized companies that can maintain a database for the reason your dealing in a centralized market. What the person was asking is, is their a forum where landlords can input information and I can "go in" and grab it from other listers, the answer no there isnt. The reason for those who might want to know is that it creats a possible libel suit in the end.

So advice, use whom you want and rely on many factors including credit to make your decisions. Most will say that "gut feelings" work, well with the combination of gut feelings, credit background etc. you have screened properly. Remember in the end you have to feel comfortable with prior to putting them into your property.

We at C.I.C. thank REIN for making us an industry partner for the purposes of credit screening, collections, etc. and this is my expertise and I speak from experience.

You dont have to screen everyone, if someone rubs you the wrong way, why would you want them in your property.

Chris Bradnam
Owner
Credit Info Canada
(780) 486-1183

 

[PropertySolution]

QUOTE (Sherilynn @ May 7 2010, 09:08 AM) Do you really think the cost of one bad tenant would be less than the cost of 20 credit checks? A professional tenant can cost thousands of dollars and can be even more damaging to your psyche. And many professional tenants would be discovered and avoided using a credit check.

As for the credit check companies, they must charge a fee because they incur expenses both to obtain the information and to ensure that the information is kept private. Charging a fee and/or requiring you to register as a member helps these companies do their own screening to be sure that credit information is used properly and legally (IE. protecting privacy).

If reducing expenses is your objective, then only check credit as the last part of the application process. Also, you could take a "deposit against rent" and use an "instant rental approval" form stating that the deposit is forfeit if any information on the application or other forms is found to be misleading or false.

First, I never said or even implied for that matter "...the cost of one bad tenant would be less than the cost of 20 credit checks." My remark was toward maintaining a budget.

Second, I have no problem in paying to have a CC done provided the cost is with-in my budget. Upon looking at few companies that were suggested I found that using this method would not put any pressure on my budget so I applied for a membership. My previous experience was only with Equifax and as I am a small company paying a monthly high fee plus the cost for every inquiry I could not fit this method into my budget. That is why I wanted an alternative.

And finally, I have seen a few of these "instant rental approval" and to put it bluntly, they are ridiculous. No prospective Tenant with a bad history is going to be honest on these things. I don`t know maybe I missed something in the value of them.

 

[invst4profit]

QUOTE (Property Solution @ May 7 2010, 03:40 PM) I have just sent my application in to TVS. The prices they charge are more in line with what I was expecting to pay.

I would never do a CC on someone until I was completely finished with all the other checks I do. I also picked up a few more from suggestions by members here.


Funny I do it exactly opposite. If a tenants credit score does not meet my minimum standard I don`t waste a minute of my personal time on any farther background search.
The reason for this is because my time is too valuable to waste on a tenant that does not pass the first litmus test.

Of course many will say that the credit score is not the be all and end all and that there are many reasons for a tenant to have a low score. That is true but I don`t care what the reason is the fact that it is below my minimum requirement means for some reason they did not pay there bills on time. I expect my rent to be paid on time.

However if they tell me in advance there score is low and the reason is plausible I might consider them as a potential tenant but this would be very rare. I am not interested in peoples life stories, I am not a social worker, I am only concerned about the likelihood of being paid on time.

Some will also add that tenants all have low scores that is partly why they are tenants. That is definitely not true there are many many reasons why people rent. I rent to those that are responsible individuals that know the value society places on protecting ones credit score.

 

[PropertySolution]

QUOTE (invst4profit @ May 7 2010, 05:41 PM) Funny I do it exactly opposite. If a tenants credit score does not meet my minimum standard I don`t waste a minute of my personal time on any farther background search.
The reason for this is because my time is too valuable to waste on a tenant that does not pass the first litmus test.


We will have to agree to disagree on this point, besides the end result is the same.

The truth be told my first test is gut feeling. I can tell with-in the first 30 seconds of meeting a prospective Tenant if they are going to be compatible. I have learned through 25 years of experience not to ignore this as it will be sure to come back and bite me in the as.... errrrrrr ankle.

 

[Sherilynn]

Greg, although I sometimes think you are a bit extreme, I must say that I agree with you more often than not. A pessimest sees the worst...an optimist sees the best...and a realist sees it all and judges accordingly.

And to PropertySolution: if you have 25 years of experience of knowing within the first 30 seconds if a tenant is compatible, then why bother with credit checks now?

Regards,
Sherilynn

 

[PropertySolution]

QUOTE (Sherilynn @ May 7 2010, 10:34 PM) And to PropertySolution: if you have 25 years of experience of knowing within the first 30 seconds if a tenant is compatible, then why bother with credit checks now?


I do not know where you got the idea I have not used credit checks before but I do clearly state in one of my posts that my previous experience was only with Equifax.

Further, I simply noted that I can tell if a Tenant is going to be compatible with-in the first 30 seconds, not that I stop there.

You really should read the posts entirely and not just what you want to see.

 

[invst4profit]

QUOTE (Sherilynn @ May 8 2010, 12:34 AM) Greg, although I sometimes think you are a bit extreme, I must say that I agree with you more often than not. A pessimest sees the worst...an optimist sees the best...and a realist sees it all and judges accordingly.

And to PropertySolution: if you have 25 years of experience of knowing within the first 30 seconds if a tenant is compatible, then why bother with credit checks now?

Regards,
Sherilynn

I can definitely come across at times as more than a bit extreme. The system in Ontario has turned me into a overly protective sync when it comes to dealing with tenants. It is no secret that the RTA is pro tenant in this province.
In addition I have found tenants like to test and push the limits and even with only 33 units there is always someone testing me..

As well as the fact that in my line of business, where tenants can stay for 20 years or more, I only get one shot at choosing the right one. Once I have a tenant I must be diligent when it comes to training tenants and applying the rules as it is human nature for some people to stretch the limits more over time. I try to avoid making decisions on a individual bases to make my job easier and prevent inconsistencies that can bite me at the LTB. The few times I have regretted my decisions were in instances when I made compassionate decisions (not that every compassionate decision has burned me).

My approach and decisions are driven by a desire to maximize income, which is why I am in business, and to protect myself from the LTB.

Most should take my comments with a grain of salt.