I asked my broker how she runs credit reports for customers who are in the market to rent, she said she doesn't. I use to work for a large brokerage who had a department that was in charge of this. How do you guys do it?

The credit reports really aren't to show the credit score as many have been foreclosed on etc.

What you are looking for is are they carrying a lot of debt on paper? If so their chances of default are high when renting. It's much better to see a recent bankruptcy then a lot of debt. With a fresh start it's easier for them to make the payment.Now if they have an ongoing chapter 13 instead of a chapter 7 that is a different story.

Another item you are looking for is liens from previous landlords or apartment complexes for damages or non-rental payment.No matter how nice they seem this is very telling of what will happen if they rent from you or your client.

Always renting out a property that can't sell is not the best solution.Once moved in it could take months of non-payment to get them out and by then thousands of dollars of damage might have been done. Now the landlords are owed multiple rent payments and must spend thousands getting the property ready to re-rent or sell.

You will find landlord companies in your area who run the reports for a nominal charge.Many counties and cities have been overhauling their landlord tenant laws so make sure you are up to date for your client.Make sure you specify if you are just doing the initial lease or also providing property management and check to make sure if you are doing monthly property management your broker E and O policy covers it and your IC agreement allows it.

Hope it helps.I hate property management and avoid it like a plaugue.

My company has a property management division. I don't do property management so on occasion I will get a person who does not a property manager but wants the intial screening and application.

The property manager will run the checks and give the report for a fee. The application fee is 75 bucks. He runs a past rental report and a criminal check. He does not do credit reports though (he mentioned some kind of liabilty?). I don't do property management though, so I refer to him.