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Renting a Home in Los Angeles? You Will Need a Credit Report

By
Real Estate Broker/Owner with Home Jane Realty BRE# 01439865

If you are  thinking of renting a home in Los Angeles, you are going to need to provide a credit report.

You can pay a fee for the landlord or his or her agent to run the report for you, but it is much easier for you to run one yourself.Credit Report

Once a year you can get a free credit report  Two of the ones that I like my clients to use are freecreditreport.com and creditscore.com/creditreport.com (one and the same company), which charge $12.95.

You will run a full report, not just get the scores, on all three bureaus which you will be able to email.  Also, the landlord may require proof of funds to show that you can cover at least a year’s worth of rent.

Unfortunately for some of my clients, their credit has not served them well.  Landlords are becoming extremely picky about prospective tenants’ credit scores and have eliminated some very good candidates.  They tend to be wary of scores in the 600s, even though there may be a good reason for those lower scores.

If you feel your credit score is going to let you down you may consider looking for a co-signor or guarantor for the lease.  This will be the case if you are new to the country and have not established credit.  And of course, if you can afford it, you may pay a year’s rental in advance which allay any concern on the landlord’s part.

Like the the housing market in general, the rental market is suffering from low inventory.  You need to look as strong as possible when applying for  a lease.  There is a lot of competition.

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Comments(25)

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Deborah, thank you.  Yes, it is pretty much standard in L.A.

Jun 07, 2012 11:20 AM
Lee & Carol Barbour, REALTORS
Murphy and Hayesville, NC; Hiawassee, Blairsville, Blue Ridge GA - Murphy, NC
Mountain Living Team in Murphy NC and North GA
Here too Jane. We have the potential Renters provide their own credit report. More Owners are renting and considering circumstances vs. credit too. Many can't get loan approval, but make good rental clients.
Jun 07, 2012 12:07 PM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Jane, great information for people looking to rent a home in Los Angeles.  If they're looking now or in the future, start the credit report process - it's amazing how much mis-information can be on reports.  

Jun 07, 2012 01:04 PM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Jane - It's too easy to fake a credit report, so our office administrator runs them.  It's also easier to read and analyze them when the reports are from the same service.

Jun 07, 2012 01:21 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Carol,  that's good to hear.

Juli,  absolutely.  Some people are shocked to see what their credit really is.

Gail, not sure how they would fake the report, but trust me.  You should see some of these reports.  No one would fake those :)

Jun 07, 2012 02:48 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Jane

The ability to provide a credit report is often necessary.

I have learned, from a fellow who is endorsed by FICO to teach about credit scores, that FREECREDITREPORT.com, despite their clever commercials, is NOT an accurate credit report. Can't comment on the other source your provided.

Here's the site Nabil Captan, who has been in the credit industry for years, suggests folks use to get their REAL credit report - www.AnnualCreditReport.com.

There are lots of sites out there that provide, as he says, FAKO scores...the majority in fact.

Jeff

Jun 07, 2012 04:41 PM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Great advice to take advantage of your free credit report and bring it with you when you are looking to rent.  Saves so much time.

Jun 07, 2012 07:35 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Jane * I do not accept the "free" reports as they often say right across them NOT FOR RETAIL CREDIT PURPOSES - I want the report I can pull through my tenant screening service as it often has past judgements and the explanation.

Jun 07, 2012 07:47 PM
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

This is such excellent advice Jane. Not only to get a credit report but the solutions you gave people that have bad or no credit. Now that's helping clients!

Jun 07, 2012 10:47 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Jeff,  good to know.  I will add that.  I have had no complains with the other two.  They certainly don't seem to enhance people's scores, that's for sure :)

Roger,  it does indeed.

Wallace,  that sounds like a good idea. The regular credit scores, proof of funds and previous landlord references are acceptable here in most cases.

Al & Peggy,  thank you.

Jun 08, 2012 02:47 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Credit reports are needed here in our area on the SF peninsula, too, Jane. I haven't had any landlord request proof of 1 year's rent in the bank, but that could very well bel a difference in the price point of rentals.

Jun 08, 2012 03:21 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Lottie,  they may want the proof if the credit is not good.

Jun 08, 2012 03:58 AM
Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

Jane,

The way many renters mistreat their homeowners' properties, I think a credit report is only fitting... g

Jun 08, 2012 06:04 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Gordon,  unfortunately, credit reports really don't show the character of a person.  They may have had unfortunate circumstances, but it doesn't mean that they would not be good tenants.  I have had a number of great prospects lose out because their credit wasn't stellar.

Jun 08, 2012 08:59 AM
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Jane, in our area it's rare that prospective tenants are asked to show 1 year's worth of rent payments up front. However, when I managed property in the SF Bay Area, I did have a tenant pay one year's rent upon move-in because their home just foreclosed.

We look at tenants based on the entire "package" not just simply the credit scores. If their only derogatory credit is for having a foreclosure or short sale, but they pay all of their other bills on time, we would still consider them based on other factors such as income, etc. :)

Leilani

Jun 08, 2012 06:31 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Jane, without tenants with decent credit, being a landlord can be a little scary.  Even with great credit, there are no guarantees, but it does say something about the tenant applicant. 

Jun 09, 2012 06:27 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Leilani,  I think if owners met the tenants a lot of these credit scores wouldn't matter :(

Patricia,  it is scary, but as I said above, sometimes you can just tell who is going to be a good tenant.

Jun 09, 2012 06:32 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Jane -- a well-prepared prospective tenant will be wise to follow your advice.  Rentals are highly competitive in many neighborhoods.   

Jun 10, 2012 07:35 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Michae,  they are very competitive for sure.

Jun 10, 2012 08:02 AM
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

Doing this every 4 months with one of the reporting companies is my recommendation.  FREE is always good Sandy don't for get to get your Free FICO score at myfico.com

Jul 09, 2012 10:10 AM