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Wednesday 13 June 2018

Getting The House In Order With A Tenant Credit Report

By George Murray


Humanity was nowhere near the first animal that walked the planet. No, that was some ancient creature that evolved from fishes. Its primitive brain probably did not realize what it was doing, just how important the act was and exactly what kind of effects would ripple out from a single step on dry land. But that one act of walking, would later prove to be the foundation on which humankind would build a fractured empire that spans the every virtually every landmass on the planet. When the people on those landmass stopped moving about and settled, those settlements would eventually become large, sprawling cities. Those cities are composed of buildings, buildings which are owned by a relative few. Not everyone one owns real estate. The people that own significant amounts of it make their money by renting it out. But in order to select the best renters, many will often ask for a tenant credit report.

A credit report is a detailed history of the financial history of a person. It will generally say a lot of things about the credit history of a person. It will say if they have ever defaulted on a loan, or if they have ever taken out a large loan and how well said loan worked out for the lender.

Each owner should have a detailed credit history of a prospective tenant. Because the profits from owning a property can stem entirely from whether or not a tenant is able to pay the monthly rent, it is important to know whether or not someone is capable of paying. A credit report is generally a great way to gauge the financial situation of an individual.

However, the credit history is not all that should be checked. The personal background of a person must be looked into as well. Whether it is fair or not, sometimes society will designate that a person from a certain background is undesirable. So, when such people move into a property, real estate prices can take a nosedive, not just for the property in question but also for the entirety of the neighborhood.

A good tenant is a reliable one. Ideally, renters should pay the full amount at the designated time and not damage the property at all. They should also only make alterations with the consent of the owner.

Being a landlord can be profitable. Renting out real estate can create a passive stream of revenue, allowing a person to still work a regular job. It is also a great cushion for when something happens, like if a person loses their job.

But being a landlord is not just sitting back and collecting checks. Fair rents must be set. Bad renters must be evicted. Damage that is not directly caused by a renter must be repaired and is usually done at the expense of the owner. The upkeep of common area like lounges and swimming pools also fall under purview of the landlord.

Having a diversified portfolio is a good idea for anybody. Real estate is part of a diversified portfolio. In the right location, renting out properties can prove to very lucrative for an individual.

The economy runs on money. Everyone needs it. There are ways to get it, but due diligence should be done.




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