Tip of the Month - June, 2019
Source: Property Management-6th Edition
By: Robert C. Kyle/Floyd M. Baird/Marie S. Spodek
A credit report may be
obtained legally only with the applicant's consent and is a history of
how a person pays his or her bills. Therefore the property
manager must set up a procedure for obtaining permission (a permission
form is usually completed as part of the application paperwork).
Many managers charge a non-refundable fee to help defray the costs
involved in obtaining a credit report.
The credit bureau will send the manager a report on the
financial reliability of the prospect. This statement is an
itemization of the status of the prospect's past and current accounts,
usually identified by industry (e.g., bank and department
stores). The report will note bankruptcies, collections,
charge-off accounts and current obligations. The quality and
dates of all payments are listed on the report along with an indication
of their regularity. The letter will indicate the type of account
(open, revolving, installment) and the number refers to the payment
pattern. A rating of 1 is the highest, given for payments made as
agreed: bad debts that have been turned over to a collection agency
receive a rating of 9.
A new type of service has sprung up to help in the process of
learning about tenants. These new companies not only search the
credit bureaus but also provide a variety of other reports.
Rental performance histories contain information such as evictions,
past due balances, noise complaints, insufficient checks, and damages
to the rental unit.
This web page was updated on 05/27/2019.