A lot of people ask me whether it is necessary to run tenant credit checks on prospective tenants, and I have an unequivocal answer for them – yes, absolutely. You must know about the financial health of a person you are doing business with; someone you are literally letting into your home. Think about it – this is the person who will be occupying your property. You have to be sure that they have the wherewithal to pay you rent today and for the foreseeable future. But maybe you don’t want to undergo the hassle of this? Well, don’t!
Running a tenant credit check isn't really difficult, but it can be tedious and may require some amount of know-how. For instance, one should know how to look for whether or not this person is financially responsible. Have they defaulted with loan repayments or other dues? Have they been declared insolvent at some point? Are they in the habit of issuing bad checks, and have they had their accounts frozen at any point? Very importantly, are they trying to hide any or all of this information from you? Obviously, as a property owner, you want to know all this.
You don’t have to worry about doing the tenant credit checks yourself. This is the job of your property manager who will also be taking care of a whole lot of otherwise tedious jobs associated with being a landlord. The property manager will ensure that your prospective tenant is good for the money they are going to be paying you. So in a sense hiring a good property manager is like hiring peace of mind. You know your investment is being safeguarded.
With our carefully designed Remote Control Retirement Riches formula, everything gets taken care of for you. You do nothing! The day-to-day dealing with a tenant, rent collection, dealing with complaints and repairs – all of this gets taken care of for the investor. And there is a good reason for this. Those property managers want to stay in my good books; in the good books of anyone associated with my company ICGRE. So they are going to want to do a good job for you because it is in their interests to do so. Running tenant credit checks is one of the services they will be happy to carry out for you.
To know more about investing in real estate and about securing your financial future, visit us at icgre.com. You can also sign up for our upcoming real estate event where you will find out about the best markets for investment right now, and much more.