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Renters- why we consider credit history

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Services for Real Estate Pros with houses for rent, Solano County & Glen Cove 01870024

Renters- why we consider credit history

delgado property management 

In qualifying prospects for rental properties, credit history is one of the more important factors in the decision.  Why is this?  After all, it’s not as if you are taking out a loan and could skip town with the cash.

At Delgado Property Management, we consider credit history because credit history is a commonly accepted measure of financial responsibility.  The basic idea is that, if you develop a history of paying off debt as agreed, than it is more likely that you will continue to do so in the future.  So, good credit is an indication that you will consider timely payment of rent as important and will be reliable in making rent payments.   Of course, timely rent payments is very important to both us as property managers and to the homeowners as they often rely on your rent payment in order to pay the mortgage on the home that you are renting and living in. 

There is a cost to run a credit report, but you pay this as an interested renter directly to the agency that performs this task and Delgado Property Management makes no fee from this.  However, we are sent the results and before making any decision on a rental home or condo rental, we evaluate the credit results closely.

People’s perceptions of their own credit rating can vary widely.  We often meet people with poor credit who believe that they have good credit and we also meet people with very good credit who believe that they have poor credit.   This is why we will often ask questions of you regarding your credit.  When we learn specifics from you we can help you to make a more informed decision as to whether or not to pay the fee to have the credit check performed. 

Building good credit is not an overnight task, but it can be done.  If you would like to learn an overview of this, take a look at the following website for a downloadable pdf: http://www.compucredit.com/documents/rebuilding%20credit.pdf

Of course, credit is not the only factor that we consider, but it is a very important factor and one that you should take seriously. 

 

Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Mark * PAST credit history is a sign of how prospects VALUE their credit and how they would like to preserve it!

Oct 30, 2011 11:24 PM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Mark, 

Credit is truly our most important INDICATOR of how they will pay for rent in the future.  We are fortunate, as a majority of our tenants are at 750 or higher - which is excellent.  This also is why we have never had to evict anyone.

All the best, Michelle

Oct 31, 2011 02:55 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

You are right when you say credit can be improved, but not overnight.  It takes time and committment.

Oct 31, 2011 05:52 AM
Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Mark - I agree with a credit history is the best measure of a person's financial responsibility and it paints a good picture of whether or not someone will pay their rent on time in the future. That's why it's so important to take your credit very seriously! Sad that so many people out there who once had great credit lost their jobs and their credit took a hit - that's one thing out of people's control.

Nov 01, 2011 04:50 AM
Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828

Mark, good information and easy to understand! Congrats on getting a renter for my business partner's rental home in Benicia.  Looking forward to you all being close to CBSP!

Nov 01, 2011 12:07 PM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

Ladies-

Thank you all for your comments and your insights. 

Melanie-

You are more than welcome for getting a renter for your partner.  It's what we do!  We are also very much looking forward to our move right across the street from CBSP.  See you soon.

Nov 01, 2011 01:07 PM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Mark - it is amazing how many people have no idea that their ability to rent or get a mortgage can be influenced to the degree it is by their spending habits (how they manage their credit cards)

Nov 01, 2011 03:37 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Probably the most important number in the world to you, it took me 25 years to get a grasp on that.

Nov 13, 2011 11:38 PM