How to Run Credit Checks on Prospective Tenants

When checking the background of potential tenants, it is vital that you run a credit check to determine their financial history. By running a credit check, you are giving yourself an idea of what to expect from this tenant, in regards to timely payments. You are also able to determine whether or not to charge a deposit.

• Obtain rental worksheets that you require the tenants to fill out. This worksheet includes the names of former landlords the prospective tenants have had, as well as their contact information. Other information on this type of form includes their employment status, credit history and the permission to check credit.


• Contact a specialized agency to check the past payment history of a tenant. An example of an agency that provides you with this information is the National Tenant Network. Simply submit your prospective tenant’s information, including the social security number, and wait for the report to show you how they have paid their rent in the past.


• Order credit reports from the three major credit bureaus, Equifax, Trans Union and Experian, to review their credit history. You can use this information to make your decision on the deposit and how much you will charge the tenant. You can also make the decision to deny their application, due to constant and major cases of late payments. Charge an application or processing fee to cover the costs of running these credit reports.


• Verify the information the tenant provided you with, such as contacting the current employers for employment verification and contacting financial institutions to confirm related bank information.