How Much Does A Tenant Credit Check Cost?
A tenant credit check is used by property owners to determine whether a tenant is a reliable person to allow as a renter. While this does not guarantee that the tenants will always pay on time, as there may be other factors that can affect the payment, it gives property owners the important information that setting aside other circumstances, tenants will be likely to pay on time.
How much is it?
- The price for a tenant credit check can range from $15 to $45 depending on what kind of report is requested by the property owner. It has become easier to run a tenant credit check since the request can now be sent online. Different service providers are able to provide tenant credit checks that are sent over the internet or through the mail. Many companies offer this services at different rates, and the charges mostly depend on the type of background check requested.
- For example, a service such as You Credit Check has over 3,000 positive reviews for their service. They are one of the most trusted companies to which people go for different types of background checks. The price for their service can start at $15 for the basic Credit Report check.
- Mr. Landlord is a landlord community that provides affordable credit checks. Simply based on the name itself, the company specializes on providing tenant credit checks anytime of the day, any day of the week. The price for the tenant credit checks that they perform can start at $10.
What is going to be included?
- When you request to have a tenant credit check performed to a prospective tenant, the company that provided the service will include a detailed credit report that shows the credit score, credit accounts, and even bankruptcies.
- Credit check companies can also provide additional information such as a criminal record, previous addresses, job histories and more.
What are the extra costs?
- Each credit report is performed per individual tenant; additional payment will be made for additional prospective tenants on which you would run a credit check.
- There are other checks that can be performed by the service providers, and depending on which report that you want to have produced, the costs can differ.
- Other companies can provide eviction reports that can help you further analyze the tenant, and this can cost around $5.
Tips to know:
- Running a tenant credit check provides good indication that the person will be able to settle and accomplish financial responsibility. Even if the tenant has a good credit score, however, you may need to consider other factors before accepting tenants.
- Do not be selective with tenants and try to avoid discriminatory complaints. Choose your tenants based on financial history rather than their race, gender, or other possible discriminatory factors.
How can I save money?
- Tenant credit checks can be inexpensive but just make sure that you filter the prospective tenants so you do not have to run a check on each one of them. Have some sort of pre-qualification system that would make the credit check last on the list so that you will be able to save money.
- Instead of requestion a tenant credit check, make a phone call to previous addresses listed on the tenant’s application and inquire about the person’s ability to pay on time.
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