One should expect to be closely examined as a prospective tenant. Credit checks, personal interviews, and a copy of the rental history report are all things that a reputable landlord will do. Because these reports might be a decisive factor in any rental application, it's critical to make sure tenants understand what's on them. Also, dispute any errors that they uncover.
What is a Rental History Report?
A rental history report is exactly what it sounds like: a written record of the tenant's previous rental experiences. They're made to demonstrate to potential landlords what people are like as a renter. They are, in general,
- A detailed summary of all the locations where tenants have rented.
- Information on how to contact the landlord or property manager who was in charge of the property when they were there.
- The dates people resided in each rental, as well as the amount they spent in rent.
- Late rent payments, evictions, broken leases, and any other major issues that arose during the rental period.
- A general recommendation from their prior landlords (positive or negative).
Where does the Rental History Report Come From?
Private consumer monitoring companies gather some rental history information. Background checks, credit reports, foreclosure records, criminal history, and location histories are all used by these companies to accumulate data.
In some circumstances, a landlord will take care of the rental history aspect of the tenant screening procedure. They'll ask for certain details in the rental contract, such as the previous residences and previous owners' contact details, and they'll call tenants to inquire about previous behavior as a renter.
Also Read: Single-Family Vs Multi-Family Rental Property Investment Guide
Is there a Rental History if Someone hasn't Rented Before?
No, one should not be concerned. If this is the first rental, the landlord has various options for vetting people. They may (and most likely will) verify the tenant's income by requesting pay stubs, doing credit analysis, and contacting personal contacts. They might even propose a lease co-signer.
Will all Landlords Request Rental History?
Yes, very likely. However, how they go about it varies a lot depending on the landlord. Private ones may just ask tenants to fill out a form with their previous landlord's name and contact information. A report from a screening business will most likely be requested by landlords of big buildings or property management companies. After a landlord submits a rental application for the unit, they'll do this.
What to do if the Information on the Rental History is wrong?
After receiving a copy of the rental history report, double-check it for accuracy. Tenants should not let anything fall through the cracks. Like incorrect dates for even one home could affect their prospects of finding a new residence by mistakenly showing late monthly payments. They have the right to challenge any information in the report that they believe is incorrect. If tenants provide supporting documentation, the company will investigate the situation and resolve any issues.
Will the Rental History Matter once a Tenant Stops Renting?
If someone never owned a property before, their rental history could make or break a mortgage application. Mortgage lenders will review the record and will most likely contact some (or all) of the previous landlords to inquire about a tenant's behavior. Especially if they paid rent on time. Individuals are unlikely to get a loan if they have paid 30 days or more late three times or more.
