Minimize Risk
1. Credit Reports - Fraud Prevention Tool
2. Criminal Record Check - Fraud Prevention Tool
3. Eviction Search
4. Contact Previous Landlord
5. Contact Employer and/or Ask For Pay Stub
6. Utility, Telephone, Cell Bill
7. Self Employed
8. Interview
Credit Reports - Fraud Prevention Tool
1. Credit Reports - Fraud Prevention Tool
A credit report on a Prospective Tenant is likely the most valuable piece of information that you can obtain. Here is why:
» By comparing the personal information on the rental application to the personal information on the credit report, you can determine if the Prospective Tenant has been truthful with you or not. Does the name, date of birth, SSN match? This will identity your Prospective Tenant so that you will know who you are dealing with.
» Delinquent or bad tenants generally leave out the most current address where they have not paid rent or had difficulties with the previous landlord. Compare the address on the rental application to the address on the credit report. Does it match? A credit report will list current and previous addresses in most instances, if the address is not current, neither is the credit history, that is a red flag and the credit report in all likely hood will not have a good rating.
» A credit report will most often list current and previous employers where the credit history is recent, again if credit history is not recent or current that is a red flag and the credit report will not have a good rating.
» A credit report lists liens, bankruptcies, collections and legal items. Generally if the credit history has problems there will also be a list of collections and/or legal items reported.
» A credit report lists all of the accounts related to Credit Grantors and it rates each account. 1 thru 9, 1 being the best rating, 9 being the worst, it tells you the balance on each of those accounts and any past due amounts. If the rating is a 9 it will likely tell you that the account is out for collection and that the Credit Grantor has closed the account.
» A credit report will tell you who has been making enquiries on the Prospective Tenant, has he/she been applying for credit anywhere else recently? Is a Collection Agency making inquiries? Has any other landlord/Property Manager been making inquiries?
» TVS Tenant Verification Service Inc. obtains a risk predictor (FICO) score for you from the Credit Bureau; this is a guide that predicts future risk based on the past and current credit history.
2. Criminal Record Check - Fraud Prevention Tool
The National Criminal Report that TVS Tenant Verification Service Inc. obtains for you, searches criminal conviction, sexual offender registry and Department of Corrections records from across the United States and provides information on any found matches to your applicant. Choose from the Please select one menu to determine if we can obtain criminal record information and sexual offender information from your State:
Important to note: While this National Criminal Record Search covers a broad spectrum of databases, it does not cover all of them, there are many databases that hold criminal record information, they are not networked and access too many of them is not available. You may want to determine if you can access Criminal Records at your local Count Court Registry. A phone call to the Information Desk is probably the quickest way to find out.
As a Landlord you want to minimize your risk, TVS Tenant Verification Service Inc. helps you do that, however there is more due diligence that you can conduct i.e. contact the employer, the previous landlord and conduct a criminal record search with your local County Court Registry. You want to take the Risk out of Renting, the more due diligence the less risk.
The National Criminal Report contains:
• Source/type of record (State Court/Department of Corrections, County Court, etc.)
• Offense description
• Various dates (offense, conviction, prison admission and release)
• Additional identifying information (height, weight, race, hair color and eye color)
• Case reference codes for further research
• Over 700,000 photos from Department of Corrections records and Sexual Offender Registries
The fee is $16.95 USD for a National Criminal Record Search, so it doesn't matter what State your Prospective Tenant was convicted in, if he has a criminal record it is likely to be found. Please note that the fee applies whether there is a record or not. TVS Tenant Verification Service Inc. pays a fee each time the database is accessed.
This fee is discounted for Associations, Property Managers, Apartment Owners and other Organizations that request numerous Credit Checks on a monthly basis. There is no other fee for the TVS service.
3. Eviction Search
The Eviction Search is from one of the largest Eviction databases in the country. The combined database displays money judgments, possession only judgments, skips and property damage claims. Please see the example of the information provided by Eviction Search.
Note: In the event there is a name match but the address does not match what you have on the rental application, TVS will obtain previous address(s) for you at no additional cost. You can then compare the address(s) on the Eviction Search to the previous address(s) that TVS obtained for you to help determine if it is your Prospective
4. Contact Previous Landlord
Part of your tenant screening process should include contacting the previous landlord, you want to know if the Prospective Tenant paid the rent on time, was there any damage upon departure and was he/she noisy and/or disturb other tenants.
TIP: When you call the previous landlord, the first question should be: Can you tell me what you have available for rent? Sometimes Prospective Tenants use friends as references, you have to be deceptive and determine whether you are speaking with another landlord or a friend, when you ask the above question and a friend is answering the telephone, their first response will be, "you have the wrong number".
5. Contact Employer and/or ask for pay stub
As a landlord you want to know if your Prospective Tenant is stably employed, is his/her income enough to pay living expenses and your rental fees? How long has the Prospective Tenant been employed there?
The Human Resources or Accounting Department should be able to advise you what you want to know. They may want you to fax them a copy of the rental application that has the consent/release clause prior to giving you any information.
You can request to see a pay stub from the Prospective Tenant, this serves several purposes, aside from telling you what the bi/weekly or monthly income is, the pay stub will have the Prospective Tenant's name on it, and it should have his /her current address and possibly the SSN. Make sure that you make note of everything useful that is on the pay stub.
6. Utility, Telephone, Cell Bill
If a Prospective Tenant claims to have previously rented, then he/she should have a fairly current utility or telephone bill. Ask to see it, it will have a name and an address on it, this is good information that you can use to compare to the information on the rental application. Does it match? If there is no utility or telephone/cell bill available, why not?
7. Self Employed
Many Individuals are successfully self employed; many however are not. As a landlord you want to ensure that your self employed Prospective Tenant, will be able to meet your rental fee obligations.
Ask to see a W2 from last year; it is usually a good barometer as to whether or not the Prospective Tenant will be able to meet his/her monthly rental fee obligation, as well as living expenses and other debt requirements.
8. Interview
Get to know your Prospective Tenant, ask questions:
» How long have you been in this area?
» Do you have any family living close by?
» How many times have you moved in the last three years?
» How long have you been employed with your current employer?
» Have you ever been late with your rent payments?
» Do you play loud music?
» Do you intend to have many friends over and/or parties?
» Do you smoke cigarettes or marijuana?
» Do you have a drug habit?
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