How To Start Running Credit Checks on Your Prospective Tenants
Alberta landlords have certainly been in the news recently. It all started when Calgary Mayor Naheed Nenshi claimed landlords in his city were gouging tenants with huge and greedy rent increases. He went as far as to claim Calgary landlords viewed owning a rental property as a get rich quick scheme.
Mayor Nenshi also claimed he was a small residential landlord himself and made sure to only increase the rent slightly and is still getting a decent return on his investment. Interestingly enough the Mayor didn’t talk about the rising cost of utilities in his city.
He also failed to mention that it was only five years ago during the economic downturn that rents were not rising and landlords were having trouble even finding a tenant to rent their property.
Is Being An Alberta Landlord A Get Rich Quick Scheme?
No, it’s not at all. Landlords make an investment and hope for a decent return on it. This is how just about every business operates.
While vacancy rates are low now things may change in a year or two. Landlords also have to make sure they rent to qualified tenants who won’t stop paying rent or setting up a grow-op or worse.
Successful Landlords Need Good Tenants
Successful Alberta landlords know how important it is to vet your tenants before renting to them.
There have been some media stories have new Alberta landlords also waking up to the fact that screening your tenants and making sure you know who you are renting to is the key thing to do for your rental property.
After all, tenants who have rented to tenants on a ‘good feeling’ and collecting money up front have faced these same ‘nice tenants’ quickly putting in marijuana grow-ops, making huge damages, or in the case of an Edmonton landlord recently there was extreme violence.
Credit Check Before Renting Out Your Rental Property
The only real way Alberta landlords have to learn about their potential tenants is to run a credit check on your tenants.
A credit check will show you the ‘real facts’ about the people who want to rent your investment property worth hundreds of thousands of dollars!
A tenant credit will show you the “cold hard truth” about the people who want to rent from you. There is no need to listen to their wonderful stories or trust your gut instinct.
The worst tenants have rehearsed to trick landlords.
What Does A Tenant Credit Check Tell Me?
A tenant credit check is your only real protection as a landlord. After all, even a one month deposit won’t help if a tenant leaves you with thousands of dollars in damages.
1. Credit Score
You get to see if the tenants really pay their bills on time. A high score means they are financially reliable people who pay their bills…including paying rent on time.
You can see real employers and contact them for a ‘real’ reference. Professional tenants often provide a friend’s cell phone number to act as their employer. It’s a complete sham.
3. Past Addresses
You get to see where the people who want to rent your property really live and where they have lived before. This means you can contact their ‘real’ landlords and not friends who are faking as their landlords and will give you a big story that is not true.
How Can I Run A Credit Check on My Tenants?
There are associations in the province that can assist you. A company like TVS offers small landlords a quick and efficient way to screen your tenants for as low as $10/check.
It’s an amazing deal for Alberta landlords and designed to help you find good tenants and succeed as a landlord!