What You Need to Know About a Landlords Credit Report

landlords credit report

If you are planning on renting property, your landlord may have told you he is going to run a credit check. What a terrifying prospect.

Will he be able to see you didn’t pay your rent on October 1st, 2009? What about your credit cards?

Calm down.

Landlords do this as a means of mitigating risk when renting out properties. There are some things you should be aware of a renter. For example, there are some cases where this may affect your credit score.

Your landlord just wants to make sure you will be able to pay your rent each month. Here we will discuss what you need to know about a landlord’s credit report.

Why Does a Landlord Look at This?

A landlord’s livelihood is dependent on your ability to pay the monthly rent. Legally your landlord can do this, but you must give written permission. This can be written into the rental agreement.

Read the fine print.

This can seem invasive. Understand that you are entering into a legally binding agreement.

What Information Can Be Found?

Depending on the reporting agency your landlord uses, he could receive information from the past seven to ten years. You may see the following:

  • whether you have filed bankruptcy
  • convictions or arrests (depending on the state)
  • recent evictions (depending on the state)
  • late or delinquent bills, including any loans and rent
  • involvements in lawsuits

Your landlord may be able to see your credit score, depending on the reporting agency he chooses. Your landlord can use this in determining whether or not to rent to you. The higher your credit score, the lower the risk you present to him.

How Will He Get a Landlord’s Credit Report?

Your landlord needs your name, address, and either their Individual Taxpayer Identification Number or Social Security Number.

All of this information should be on the rental application.

Make sure you know how much (if any) credit check fees your landlord charges.

Once you have this information and have consent, you can get a credit report from a variety of sources.

Landlord Associations

Some of these organizations will offer landlord’s credit checks for a fee. These will count as hard inquiries that will impact your credit score.

Credit Bureaus

He can receive a report from Equifax, TransUnion, or Experian. These are special reports for landlords and will count as soft inquiries.

Tenant Screening Services

Some of these services will offer credit checks. He will request to know whether or not you, as a renter, meet certain credit requirements. It will count as a soft inquiry.

Being Aware of Landlord-Tenant Law

Before you rent a property, be sure to know some of the basics of landlord-tenant law. You do not need to be a lawyer, but you don’t want to enter into any contracts without proper knowledge.

If you are renting a property and have any questions beyond the landlord’s credit report, feel free to reach out to us.

Should You Hire a Property Manager for Your Airbnb?

airbnb property management

It’s easy to see the potential financial benefits of Airbnb in today’s era of side hustles and gig economies, especially if you live in a tourist destination. But Airbnb property management takes a lot more time and expertise than most people realize.

Whether you renting your own property or an investment one, being a host is far from passive. Managing bookings and cleaning schedules, communicating with guests and prospects, and maintaining your rentals all require time and money.

If you’re doing it all yourself, you could be sabotaging your profitability.

Take a look at why many hosts choose to hire a property management company to handle their Airbnb venture.

What Does an Airbnb Property Management Company Do?

Mastering the short-term rental market is no easy feat. You don’t have the luxury of having guaranteed income for weeks or months at a time, which means you need a continuous supply of renters to maximize your income.

Enter property managers, the real heroes of an Airbnb business.

They do all the heavy lifting for you, from responding to prospective guests to managing listings and cleaning schedules.

Airbnb property managers make it possible for anyone to become an Airbnb host, even if you don’t have the time to personally invest in the business. They take most of the work off your shoulders so you can focus on other things.

And, in many cases, becoming profitable with Airbnb rentals simply isn’t attainable without a good property manager.

Benefits of Hiring a Property Manager

Having the right property manager for your Airbnb rentals can be the difference between a full house or an empty nest.

Property managers specialize in creating listings, sourcing renters, and pricing strategies to attract guests. This gives you an edge over the competition in your area because you benefit from the property manager’s experience.

In addition, leaving all the details to the manager gives you more flexibility. You don’t have to be on-site for every check-in or check-out. You can run other businesses while enjoying an Airbnb revenue stream.

As a result, you can spend less time trying to figure out how to turn a profit and more time enjoying the results.

Downsides to Consider

Hiring a property manager isn’t without its flaws. For starters, it costs money.

Property management fees can vary between companies, but either way, it’s an expense that eats into your overall gains.

Sourcing a reputable company has its challenges, too. This niche market has experienced rapid growth in recent years. With over 4 million Airbnb listings worldwide, there’s much incentive and a low bar to entry for management companies.

If you choose a management company, it’s important you do your research to ensure you can get the best possible ROI.

Final Thoughts: Hire a Company or Do It Yourself?

Doing your own property management isn’t always the cheaper option, especially if you lack experience. The time you spend learning how to market and price your rental can quickly negate any financial benefit of running your business yourself.

Hiring an Airbnb property management company can allow you to maximize your rental for less than what you’d spend doing it yourself. Let eFind Agent help you find the best property management company for your Airbnb rental.