During a tenant screening, a landlord will often run a credit check on the prospective tenant. Here are a few things to consider about the importance of credit history in a tenant screening.
A credit score is calculated using a complex formula that was developed by the credit bureaus. One of the biggest factors in determining a credit score is whether an individual regularly pays his bills. If a credit score is high, you know that you are dealing with an individual who always pays his bills on time. Getting the rent payment is going to be one of the most important things to you as a landlord. By looking at the credit score, you will be able to predict if you are going to get your rent payment regularly.
Securing the Investment
As a landlord, you should look at the screening of tenants as part of your investment process. You want to take all of the proper precautions in order to secure the quality of the investment. By creating a good investment, you will have the option of selling your property with the tenant in place. If you have been thinking about unloading a property, quality tenants are a very attractive feature for potential buyers.