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Looking Beyond the Credit Score for Great Toledo Tenants

Tenant Signing a Lease for a Toledo Rental HomeOne of the most important aspects to get the most out of your Toledo rental home is to get yourself a quality tenant.

For some landlords, the description of a “right tenant” is someone who’s got an almost-perfect credit score. They finalize their tenant approval decisions based on the concept that an excellent credit history is a guarantee of a financially stable future. While credit scores are important, they don’t tell the whole story. A landlord could overlook an otherwise great tenant if he places too much stress on their credit score. Understanding the other items to look for when screening applicants can help recognize the best ones right away.

When screening rental applicants, property owners have to spend time knowing what lies beyond a tenant’s financial situation. A credit report can present a great deal of data beyond a simple credit score, information that an owner can use to his advantage to help determine if a tenant is likely to make their rental payments in full amount and on time. For instance, 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.

Even though a past vehicle repossession or a credit card charge-off is a deal breaker for most property owners, it is crucial to understand that there were plenty of people affected by the Great Recession a long time ago. Through something entirely out of their hands, they may have lost jobs or homes, but have since recovered and got themselves a stable job and maintained credit accounts well. Or, it could also be a past medical emergency that caused them to fall behind on their medical bills or student loan payments, but they’ve made good financial choices since then. In situations like these, the score might be a minimal factor than the tenant’s payment history over time. A few mistakes many years ago should not invalidate an otherwise solid applicant.

To understand the whole scenario, it’s crucial to collect data from the applicant that is not on the credit report itself. If the potential tenant has reasonable ground for their lower credit score, such as those listed above, that may be a reason to keep them under consideration. Also, property owners should always supplement an applicant’s credit report with references who can speak to their potential. 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 an intricate process, particularly for single-family rental homes in Toledo. Property owners generally want someone who will be a stable, long-term tenant, making the ruling an even more crucial one. At Real Property Management Clarity Team, we perform a thorough screening on every applicant, from credit reports and beyond. Our property management professionals know what to look for, and how to choose the right tenant for every rental property we manage. 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 567-200-2320.

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