For some landlords, the “right tenant” is somebody with a near-flawless credit score. They execute their tenant approval verdicts based on the idea that exceptional credit history is an indication of financially stable success. While credit scores are important, they don’t tell the whole story. A landlord might reject an otherwise outstanding tenant if there’s an overemphasis on their credit score. Comprehending what other qualities to look for when screening applicants can distinguish fantastic tenants in a flash.
When screening rental applicants, property owners are right to ask in order to comprehend more about the tenant’s financial situation. A credit report can reveal a great number of data than a mere credit score. These are statistics that a landlord can use to understand if the tenant is able to make their rental payments in full and punctually. As an illustration, late payments on an account that is now current can bring a credit score down but also shows the applicant is now paying their bills on time.
Despite that a previous vehicle repossession or a credit card charge-off is a bone of contention for a lot of property owners, it is critical to not forget that a large number of people were victims of the Great Recession. Through no fault of their own, they may have lost their livelihoods or homes, then managed to earn a stable income and control their credit accounts very well. Or, perhaps a previous medical emergency pushed the applicant to fall behind on their medical bills or student loan payments, but they were able to bounce back and are making good financial choices ever since. In these scenarios, the score might be a less important factor than the tenant’s payment history over time. A few slips several years ago must not prevent an otherwise worthy applicant.
To get the entire picture, it’s imperative to collect particulars from the applicant that is not on the credit report itself. If the potential tenant has a reasonable justification for their lower credit score, such as those stated above, then that may be a reason to keep them under consideration. At the same time, property owners must supplement an applicant’s credit report with references who can declare their reliability. If an applicant has a strong history of paying rent on time and a stable income, these factors may be better indicators of how they would do as a tenant than numbers on a credit report.
Tenant screening can be a tortuous process, especially for single-family rental homes in Albuquerque. Property owners predominantly want someone who will be a stable, long-term tenant, making the decision even more crucial. At Real Property Management Albuquerque, we operate a thorough screening on every applicant, from credit reports and beyond. Our property management professionals know what to look for, and how to determine the right tenant for every rental property we oversee. If you would like to learn more about our screening process or would like to speak to someone, please contact us online or by phone at 505-831-8700.