For most landlords, finding great tenants is their top priority. Once you’ve determined the criteria for your ideal tenant, the next step is to screen applicants. Tenant screening is essential for finding the right tenants, so it’s important to know how to interpret the reports you receive. Here are some tips on how to read these reports, so you make the most informed rental decisions. Please note that this is not intended as legal advice, but for information only. Laws may vary depending on your location.
Understanding Tenant Screening Reports
Tenant screening reports use an applicant’s social security number to pull their credit history, criminal history, eviction history, and bankruptcies (depending on your state laws). Using the information provided in reports from TSCI, you can spot potential red flags that can help you steer clear of a problematic tenant.
Although most of the information provided in our reports is easy to understand, here are some of the most important sections to pay attention to and what they mean.
- Credit score: The credit score shows the applicant’s credit activity. It’s important to understand when looking at the credit score that there’s a difference between the numbers represented by VantageScore and FICO. Although one number may seem too low in one system, it may be a good score in the other. If you’re unfamiliar with the differences between the two systems, we recommend reviewing the linked article.
- Tradelines: the total number of accounts the applicant has opened, including credit cards, mortgages, and car loans.
- Currently delinquent: the number of accounts that have not received at least a minimum payment for 30 days or more.
- Collections: the number of past-due accounts that have been sent to collections.
- Public Records: the number of tax liens and civil judgments, as well as any details pertaining to them.
- Past due: the sum of the minimum payments the applicant missed plus any late fees that were added to their accounts since their last payment.
- Utilization: the sum of all the applicant’s balances divided by the sum of their credit card limits.
- Income-to-rent ratio: the monthly or annual gross income the applicant needs to be able to afford rent each month. Tenants should have at least 30% of their income left for expenses beyond rent and loan payments.
- Late payments: how many late payments the applicant has made.
- Public records: the number of tax liens and civil judgments on file for the applicant, as well as details on the records and when they were reported.
- Eviction Records: details on any evictions that are on record, including the date of the judgment.
- Criminal Records: the number of criminal or court records on file, as well as the case number and the court’s contact information. This can be used to contact the court if you’d like to learn more. The report also includes a brief overview of the applicant’s sentence and other pertinent details, such as when their probation is set to expire.
To see a sample of what you can expect to receive with our tenant screening reports, click here.
Protect Your Property with Tenant Screening from TSCI
At Tenant Screening Center, our goal is to help you find responsible tenants who consistently pay their rent on time and will treat your property with respect. TSCI tenant screening reports provide invaluable information to help you protect your property by selecting the best possible tenants. Our tenant screening reports are available online and allow you to defer the cost of the report to the applicant. With several options to choose from, we make it easy for you to get the information you need for complete peace of mind. Order your reports today, or feel free to contact us at 800-523-2381.
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