Are you getting ready to rent out a property?
This is a fairly simple way to earn extra cash each month. Becoming a landlord gives you a regular paycheck, and you can always employ a property manager to do the hard work for you if need be.
However, one of the biggest challenges is finding reliable tenants who will take care of your property. You also need to make sure that the tenant can be trusted to pay the rent on time.
So, let’s take a closer look at the rental history report: what is it & how to check it for free?
Contents
About the Rental History Check Report
This document lists every property a person stayed at in chronological order. It also provides the contact information of each landlord or property manager. This allows you to get in touch and obtain a reference if you want.
You can also compare the information provided in the document with the information the applicant gave you. Pay close attention to any details that don’t quite match. Ideally, all the details should be clear and will tell you everything you need to know.
Why You Need to Do a Rental History Check?
When searching for tenants, it’s best to choose people who will stay for several years. This saves you from having to search for new tenants each and every year and also reduces the risk of getting stuck with a bad tenant.
The report will provide an overview of how long applicants stayed in each property. If they changed addresses every few months, they may have been evicted for not paying the rent. There may also be other issues, such as the destruction of property. This is why their history provides an important insight into the character and habits of applicants.
Free Rental History Check Resources
Most companies charge a small fee for this service. However, it is possible to get the information you need without paying a penny. Let’s take a closer look at some of these companies and what they offer.
Burbz
This company was founded by a real estate investor in 2010. Burbz offers complimentary rental history checks to landlords. This gives you instant access to eviction, credit, and criminal reports. Using this information will help you make an informed decision on the suitability of applicants.
Rentberry
The full online tenant screening report provided by Rentberry makes it easy to evaluate applicants. Gaining access to a detailed credit report and other essential information is very quick and easy. After creating a request, the applicant will be emailed, and they will be prompted to supply all the necessary information.
RentMe
When a potential tenant submits a rental application, you can receive a tenant screening report within seconds. RentMe works in partnership to deliver a detailed report that covers all rental history within the United States. You can sign up for a free account to receive detailed information anytime you need it.
Spark Rental
This company was created with the aim of helping people gain financial independence through rental properties. Both landlords and tenants can receive free discovery reports. Spark Rental also offers criminal background checks, credit reports, and eviction history reports.
Experian
This leading company offers landlords a complementary service by passing the cost on to potential tenants. After filling out the necessary information, you will receive a detailed credit and rental report. All you need to do is provide the full name and email address of the applicant, and Experian will do the rest. The information remains sharable for thirty days and includes employment history and credit scores.
TurboTenant
This service is used by more than fifty thousand landlords and property investors in the United States. Although TurboTenant charges a fee for its services, the fee is passed on to applicants. Property owners can choose from a wide range of services and customize them to suit their needs.
How to Use Rental History When Choosing a Tenant?
The types of potential tenants you receive will depend on the amount you charge, your neighborhood, and other factors. So, when reviewing information, you need to be realistic about the type of tenant that would be suitable. Of course, you will want to make sure that the tenant you choose will take care of your property.
The report should give you an overview of the tenant’s employment and credit history. And ideally, you need to make sure that they have a stable job and have little or no debt. Make sure their current salary is sufficient to cover the rent, utilities, and other necessary living expenses.
Red flags…
When reviewing the information, it’s important to look for red flags. These are signs that a tenant might run into cash flow problems. If this happens, they could be unable to pay the rent.
Examples of red flags include:
- Evictions
- Convictions
- Liens and judgments
- Pending lawsuits
Talking with potential tenants
If you don’t uncover any red flags, it’s time to interview the potential tenant. You need to talk to them about their previous landlords and renting history. And it’s a good idea to establish a rapport so that the person will feel more comfortable answering your questions.
Important information to discover includes:
- If the person always paid the rent on time and in full
- The condition they left their previous rental property in
- Were they charged any damages when they moved out
- If the person ever had to pay a late fee
Now that we’ve covered everything you need to know about the rental history report, would you like to know…
More about the World of Realty?
We can answer just about any concern you may have about buying or renting a property in the U.S. For example, you may be wondering, Do Realtors Run Background Checks, or Exactly How Much Do Real Estate Appraisers Make?
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Ok, back to…
Final Thoughts
If you are planning to become a real estate investor, you will need to manage a number of different documents. One of the most important of these is the rental history report. This provides you with detailed information on potential tenants before you rent to them.
Before handing over the keys to a property, you need to make sure the tenant is trustworthy. But most of the information you need to make a smart decision should be included in the report. It’s also important to ask potential tenants questions and use your intuition to guide you.
Happy rentals!
