Finding Tenants with a Good Credit Score
As a landlord, an essential part of finding good tenants is checking their credit. This is the best way of predicting whether or not they will be able to pay their rent on time.
There are various issues to consider in regards to credit scores, such as the age of your tenant. When you rent property to younger tenants, they may not have built up enough positive credit history to achieve a high credit score. However, remember that if a potential tenant has a low credit score but you feel they would be a good tenant, you could consider a co-signer such as a parent.
Another issue is the region where the property is located. Factors such as employment rates and property values can impact credit scores, so the region's average credit score needs to be taken into consideration.
Many credit reports highlight issues that may have adversely impacted your prospective tenant's credit score. It's worth investigating these issues, as some of them may not matter as much as others.
Income, of course, is another factor and a credit report helps to assess whether the tenant has enough money to pay the rent, with enough left over for other expenses.
Clearly, a mixture of judgement and intuition, as well as evidence, helps determine good tenants.
As part of the detailed tenant screening process at Redstones, we can advise on credit issues and much more to take the hassle out of finding good tenants.
