Kitsilano property management companies like Orca Realty pride themselves on performing the necessary due diligence to ensure that your home is tenanted with AAA great, reliable tenants. You must tell people that you are going to be pulling a credit check and ensure that you have their consent in writing either on the application that they have filled out or on a consent form. The credit check portion is extremely vital in your overall analysis of the prospect because it will tell you with 100% certainty if the person has a history of paying their bills or not. Banks rely 100% on hardcopy data like credit checks when lending hundreds of thousands of dollars to people so learn to read the credit report like a banking underwriter does. Westside Vancouver rental houses are worth millions of dollars so you must be sure that the tenant is a responsible individual.
It’s very important to know that a credit bureau report represents a snapshot of the applicant’s credit at a particular time. The credit score shows how much of a risk a person is so it’s important to know what affects it. Credit scores range from 300 to 900 (a perfect score). The average Canadian adult has a Beacon 680-720. Only 11% of Canadians rank above 800, and it’s virtually unheard of to see a Beacon near 900. 650 -700 is a good score and anything above that is excellent. Credit scores from 600-650 are solid but sometimes may have a blemish or two so you may need to consult the client to ask why a payment was missed or why multiple credit sources are over the spending limits.
Besides bankruptcies, judgments, etc., the top credit score killers are:
-Payments over 30-days late
-Over limit credit cards
– Judgments. Unpaid bills that have gone to collection
When matched with a successful reference check this will help you find a dream renter for your Kitsilano rental home.