Rental Payment History May Be Added to Credit Rating

Tenants who are late paying rent have never been concerned about the impact that a late rent payment might have on their credit rating. But that may be changing, as Experian RentBureau, one of the big three credit bureaus, recently began collecting data about consumer rental payments and including that data in its credit reports. This year Experian is only reporting positive rental payment information, but starting in 2012, the company also will report negative information such as late rent payments.

Some experts say including data about rent payments in credit reports could benefit consumers because it will help banks and other lenders pick up on potential consumers who are credit-worthy even if they don’t yet have traditional forms of credit, like credit cards or mortgages. It could be useful for a good tenant who’s never been late on rent to have that kind of positive credit history show up on a credit check when they’re looking to buy their first house or want to establish credit.

RentBureau is a national network of 45 property companies that collect data about rental payments and automatically report that payment history to RentBureau every 24 hours. Experian acquired RentBureau in 2010.

Did you know previous eviction notices don’t show up on credit reports? Don’t be duped into thinking a credit check is all you need to be assured you don’t have a problem tenant. Get a professional tenant screening!

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Taking the Step Toward Evicting A Problem Tenant

When all attempts to resolve disputes and solve problems with problem tenants fail, the only thing left is to evict the tenant. If you’re ready for that unfortunate step, be sure you are within your legal rights to do so. If you are, the next challenge is to craft a proper eviction notice.

First, check with the eviction laws in the city where the property is located. If the notice is incorrectly filled out or lacks the right information, it will not be valid and the process of getting rid of your problem tenants will drag on longer than you want.

Get a three-day notice with a carbon copy attachment so you’ll have a copy for your records. Fill out the notice with all legally required information, including the tenant’s name, the address of the unit, the amount of money they owe, the last date they paid rent, the current date, and your name and phone number. If you are the property manager and not the owner of the property, write “manager” next to your name.

Once you sign the three-day notice, deliver it yourself to the tenant. Either knock on the door and hand over the notice to the problem tenant, or tape it to the door so they will see it upon their return.

After three business days, if the tenant hasn’t responded to the notice by coming up with the money owed, you can take your copy of the notice and file for an eviction at the local courthouse. There will be a fee for filing, and you’ll be given a court date for the next step toward evicting your problem tenant.

Credit reports can tell a lot about a potential tenant, but they do not show whether someone has a previous eviction notice. Fill in the blanks on a prospective tenant’s background by using a tenant screening service to see important details about their rental history.

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Why Landlord Insurance Is a Good Idea

If you’re thinking about becoming a property manager, you should definitely look into landlord insurance policies. Landlord insurance is an important way to protect your investments and gives you peace of mind when taking on such an endeavor.

The two biggest benefits such a policy offers are:

• Coverage in the event that the property is damaged or otherwise uninhabitable, thereby mitigating your losses in rental income.

• Coverage of legal fees in the event a tenant sues you for injuries sustained or other problems related to the property you own.

A few things to you’ll need to consider when deciding on the right policy:

1. What kind of property is it? There are different insurance requirements for different types of property.

2. Where can you get the best rates? Research, research, research to find the best rates on the type of insurance you need. Check with any financial institutions and insurance companies with which you’re already affiliated, to see what they offer. Also check with other landlords in your area as well as any local property management associations. Compare premiums and services, and don’t be afraid to bargain to get the best bang for your buck.

3. What types of things do you want coverage on? The amount of insurance you need will depend at least in part on the kind of property it is, where it’s located, and how well maintained it is. Most landlord policies will protect you against theft, fire, vandalism and damage from weather events.

Did you know previous eviction notices don’t show up on credit reports? Don’t be duped into thinking a credit check is all you need to be assured you don’t have a problem tenant. Get a professional tenant screening!