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Tony Taylor, Real Estate Pro in Washington, DC

Are any agents running credit on rental clients prior to showing them properties?

Asked by Tony Taylor, Washington, DC Sat Nov 9, 2013

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BEST ANSWER
running credit reports before showing is a great idea.

I ask clients to go to Experian.com and get their FREE credit report. I ask them to do this for two reasons. First, they need to make sure info on their report is correct if they have not viewed it in a while.

Second, if they have poor credit, I will know this upfront, and l can determine if, and how I can help them.

For example will they need a co-signer, or will they have to be willing to pay a much larger deposit.

Kawain Payne, Realtor
Prudential California Realty
1 vote Thank Flag Link Mon Nov 11, 2013
I like this. Thanks, Kawain.
Flag Mon Nov 11, 2013
Thanks Kawain, I like the idea of using Experian.com to have them pull a free report.
Flag Mon Nov 11, 2013
I play the interrogator role "bad cop". Lots of nosey questions and advise them of my expectations. When it comes time for them to fill out the rental applications - the seedy guys run and the cream rises to the top :)
1 vote Thank Flag Link Mon Nov 11, 2013
Sounds key.
Flag Mon Nov 11, 2013
You must have payroll stubs, work references and rental references prior to showing properties. Also need to know if prior Felony convictions for any forcible felony, truth or dishonesty.
0 votes Thank Flag Link Tue Nov 12, 2013
They are not doing this in my area, only when a rental app is submitted.
0 votes Thank Flag Link Tue Nov 12, 2013
Hi Tony


Only upon submission of a rental application.
0 votes Thank Flag Link Mon Nov 11, 2013
If you were to do that on every client before showing them, you would go broke.

Ask the right questions and you should have a good sense on their ability to move forward and the likely hood of a stella credit report.
0 votes Thank Flag Link Sun Nov 10, 2013
A more in-depth upfront consultation could be the right decision. I agree if we pulled reports for free, we would spend a fortune. Many local agents already charge anywhere from $50-$150 to clients upon successfully finding housing for a client. My services are currently free and I get paid from the 1st months rent. But I'm considering an upfront credit review fee of $14.95 (Covers my cost) and at the same time provide a copy to the client. As I think this through, that could be the path to convert them to a buyer in 12-24 months. Still on the fence.
Flag Sun Nov 10, 2013
We normally give copies of the credit report when we make the offer. If the owner wants to continue, we go from there.
0 votes Thank Flag Link Sun Nov 10, 2013
Thanks Scott. I'm trying to figure out if it makes sense to run credit prior to showing clients rentals in certain areas. I know I would have to implement the requirement across the board to avoid any discrimination complaints but the concern is that certain areas tend to attract clients with higher credit risks. To avoid my agents wasting a lot of time, I'm thinking we can weed out the good from the bad right upfront.
Flag Sun Nov 10, 2013
I don't do rentals, but I sure would hope that agents are running credit checks on potential clients/renters.
0 votes Thank Flag Link Sat Nov 9, 2013
Thanks. I'm actually referring to running credit prior to showing the property. Of course we run credit once an application is presented. In Washington DC, NYC, Chicago and several other major cities, the rental market is a huge area of business.
Flag Sun Nov 10, 2013
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