I haven't checked anyone's credit in 15 years of being a landlord of multiple properties. The formula is really quite simple; did they pay rent in-time where they rented previously.
Who cares if they paid a car payment late, failed to pay some credit card on time or have outstanding medical bills. Payment history of rent is really the most important measure of whether they will be a good tenant.
I do. I use credit score extensively. Almost exclusively. I check all occupants 18+. If one fails, they all fail. Even the 18 year old kid is checked and will cause the parents to be rejected.
When you have multifamily properties, you need to have people that know how to live in a civilized manner, and if they pay rent. I do not want the bad tenant to run out my other tenants.
A past landlord is no one to listen to, they are unreliable. Even I used to give good recommendations to tenants I wanted to get rid of. Now I just have good people. I have written extensively about these topic on my blog.
My background check company creates a letter that meets the federal rules. Here is theirs. I xx'd out the companies name. You need to be 100% correct with your letter, as the tenants have the right to see the information and know where to get a copy of it. You CANNOT just give them a copy of what you received.
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Thank you for your application for residency. After carefully reviewing your application, we are sorry to advise you
that we cannot accept your application for residency at this time. This decision has been based upon information
provided by the following source(s) of information:
Trans Union - Consumer Relations
2 Baldwin Place
PO Box 1000
Chester, PA 19022
(800) 888-4213
http://www.transunion.com/directXXXXXX, Inc
xxxxx anytown ave #100
anytown, MN 55111
phone: (800) 555-1111
fax: (866) 555-1111
email: consumerinfo@xxxxxx.com
You are advised that you have the right under the Fair Credit Reporting Act to know the information contained in
your credit file at the consumer reporting agency. You have the right to a free copy of your report from the
reporting agency, if you request it no later than 60 days after you receive this notice. In addition, if you find that
any information contained in the report you receive is inaccurate or incomplete, you have the right to dispute the
matter with the reporting agency. You can find out about the information contained in your file by contacting
XXXXXX, Inc as indicated above.
When requesting a copy of your consumer report by mail or fax, be sure to include your full name, address, Social
Security number and most recent former address to match the file. You must include your signature and the date
of the request. Please indicate that you have had adverse action taken due to information contained in your credit
file.
XXXXXX, Inc only provided information about your residential, employment, credit and/or criminal history. It
took no part in making the decision to reject your rental application, nor can it explain why the decision was made.
NOTICE: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the
basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into
a binding contract); because all or part of the applicant's income derived from any public assistance program; or because
the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that
administers compliance with this law concerning this creditor is the Federal Trade Commission, Equal Credit Opportunity,
Washington, DC 20580