If you are a landlord looking to protect your property, running a credit check on your tenant is ingenious. This is paramount because one wrong tenant can bring all sorts of issues to your property and mental space, leading to heavy damages and a challenging eviction process. A tenant credit check determines if your tenant is financially stable enough to pay rent every month on time without hassle. Thus, it is wise to do a tenant screening process. The process of checking a tenant's credit is just one component of the overall process of screening potential tenants. Let us understand in this blog the process of Tenant credit check Canada.
How to Obtain Credit Check in Canada
1. Obtaining a Credit Check directly from a Credit bureau
Landlords can obtain a Credit Check mostly through a credit bureau. The most trustworthy credit bureaus in Canada are Equifax and TransUnion. But remember to take the applicant's consent in this process.
2. Obtaining a Credit Check Report from the tenant
When renting the property, you can directly ask the tenant to procure a credit check report. You must keep a copy of the credit check report. Usually, tenants must provide some documents and pay a certain amount to obtain a credit check report.
3. Obtain a credit check report through the property management company
If you are busy looking after your business and other properties, you can hire a property management company to handle your tenant and property. These management companies will manage and procure all the certificates needed for the tenant screening process, and they will easily screen your tenant, straying you away from all the troublesome procedures.
4. Obtain credit check reports through a tenant screening service
Certain tools in the market will allow
you to easily access the tenant's credit history, employment verification
documents, income verification documents, court records, risk assessment and
more. These documents will help you estimate the financial stability and
ability of the tenant. Then, you can decide whether you want to rent your
property.
What are the details included in the Tenant Credit Check Report?
Tenant Credit Check report in Canada includes the basic information of the financial aid of the tenant based on their debts, spending and earnings, also known as credit history. These include.
- Credit Score
- Loans or debts
- Previous loans
- Earlier bankruptcies
- Payment history
- Credit cards
- Financial obligations
- Employment history
- Income details, including salary slip
- Risk assessment certificate
- Court records
To conclude, a credit check report includes all information about the money that flows in and out of the tenant's life.
Suppose the tenant is asked to produce a credit score report. In that case, there is no cost for the same, but if, as a landlord, you decide to take charge and procure a tenant credit report, then the cost may differ according to the method that is used to obtain the report-all 4 methods mentioned above cost different due to the services involved in them.
Conclusion
The importance of the Tenant Credit Check
report has tremendously increased due to the loss caused by tenants to the
property. Thus, to ensure your property's safety, avoid any associated risk,
and avoid delayed rental payments, look for a Rent credit reporting service Canada
and safeguard your property right now! Reputed service
providers as TenChek can be of much help in these situations.
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