Have you ever rented out a property?

Question

My rental property is about to become vacant after having been rented out by a fantastic renter for 4 years. I went on gut instinct when I chose him. Now, I am looking at another guy that I feel will be fine. However, my attorney boyfriend is driving me nuts saying that I need to run a credit report on the new potential renter. Does anyone have any experience with this? I already know that the guy has just sold his home, so he has no recent rental history. He is going through a bad divorce and has some flaws in his credit. He has been very open about this. Further, I have checked his story through mutual friends who I have known for 8 years. Will I learn anything from spending the money to run his credit that I don't already know?

Answer 1

I would check just to be on the safe side.   Remember you can never be too cautious when renting.  I would also check his work references.  Good luck!

Answer 2

Why would you pay for the credit report?  Have him pay the credit report fee.  Also, run an arrest record checks (nasty divorce could involve assualt or result from his illegal activities).  

You're probably right in assuming this guy is no threat, but why take the risk needlessly?  It only takes one bad renter experience to learn to not take needless chances.

Also, "mutual friends" are notorious for saying what you want to hear.  You can be assured that they are not going to help you out when potential renter doesn't pay rent or trashes the place.  

More importantly, why would you not listen to your boyfriend who would seem to have your best interests in mind?

Answer 3

You won't know how open your prospective renter has been with you unless you run that credit report. It's a good idea.

Answer 4

You only "know" what he or others have told you. His credit situation could be much worse than he lets off.

Answer 5

I also understand that renters have flaws in there credit reports that don't necessarily make them bad renters.  However, in the State of California, you can also check other things..such as local records...Criminal and small claims...its amazing what you can find out about a person like that.  I also always run my potential Tenants thru the Megan's Law website, you never know.

If you still feel uncomfortable, I would ask for additional deposit and make sure you have a very complete lease with all legal addendum's from your state to cover your self in case it goes south. Good luck

Answer 6

You can ask him to produce a credit report.  He can get a free one for himself at www.annualcreditreport.com.  That way, you won't be out the money and if he is really "above board", he won't mind doing it.

Second, ask for employement references.  Call his employer and just say that you are verifying employement for a renter.  They won't tell you how much he makes, but they will tell you if he does work there and how long he's been there.  Longevity in employement is a good indicator of stability.

Flaws in credit don't mean he's a bad guy, but look for consistent bad behavior or very high credit limits with minimum payments...that could mean he can't afford to pay his bills whether he wants to or not.

It's worth the security.  Even if he is a nice person, that doesn't mean he can't get into financial trouble and you don't need that to become your problem.