How the Homeowners Credit Bureau Can Help
Homeowners’ Credit Bureau helps homeowners find the right tenants, even if they have a limited credit history
TORONTO, ON / ACCESSWIRE / September 27, 2021 / Homeowners often find themselves faced with multiple applications for highly coveted properties. In such cases, the deciding factor often comes down to something concrete and quantifiable, such as applicants’ credit history. Unfortunately, renting to someone with little or no credit history can present both known and unknown risks and challenges for homeowners.
This means that many tenants find themselves in a difficult situation, especially those who are new to credit or new to the country. They might be ready to start a new chapter in their life and start building credit, but finding a suitable rental property could be difficult due to their lack of credit history.
Credit bureaus aim to provide the most useful information possible. As Equifax points out: “Credit scores are meant to help lenders, creditors and others make fair decisions about whether or not to ‘take a risk’ on someone. The risk may involve giving that person a loan (will they pay it back?), Offering them a credit card (will they make payments in a timely manner?), Or approving their loan application. apartment rental (will she pay her rent?)… serve all tenants equally, especially those who are starting over… Those with a credit score below 660 may be less likely to qualify for better loan terms. Those with lower scores and in the “poor” credit range (typically below 560) are more likely to have difficulty obtaining credit or qualifying for better loan terms. ”
These scores are determined on the basis of the information available to the agencies; unfortunately, those who do not have hard data to prove their reliability tend to fall through the cracks. As a result, landlords run out of good tenants and applicants struggle to find suitable rentals.
Fortunately, Landlord Credit Bureau helps both tenants and landlords. LCB allows tenants to include their rental payment history on their Equifax credit reports. In turn, this helps homeowners better understand the financial history of their applicants.
Find the right tenants
There are many factors that landlords need to consider when renting to new tenants, including:
- Credit score and history
- The references
- Income versus rent payment
- Employment history
Whether they are in a new part of the world or at a new stage in their life, it can be difficult for those who are just starting out to rent a house or apartment without a strong credit history. However, that doesn’t mean they don’t have a story at all. Most applicants have bought, rented or rented something at some point. The Landlord Credit Bureau helps landlords see applicants’ past rent payments, allowing them to make more informed decisions before making lease offers.
Why credit scores don’t tell the whole story
One of the first steps a landlord should take when considering a tenant is to review their credit profile. Luckily, homeowners can get credit reports using the Homeowners Credit Bureau. While this may not tell the whole story of an applicant, it is an important first step in finding a landlord for the right tenant.
An otherwise excellent potential tenant could have a bad credit rating due to identity theft, bad financial decisions in the past that have since been corrected, or even a job loss. Such a credit score won’t tell you about a candidate’s positive attributes, such as never having missed a rent payment on their old property. Rent reports with the landlord’s credit bureau give landlords a more complete picture which can help them decide if an applicant is a good candidate for a lease on their rental property.
How the Homeowners Credit Bureau Can Help
Landlords want to find the right tenants, but being dependent on credit scores as the deciding factor in determining whether to offer a lease to an applicant, they may miss out on vital information that could inform their decision.
When landlords and tenants use the Landlord’s Credit Bureau rent reports to share a tenant’s payment history, future landlords can rate potential tenants on more than just credit scores. Some tenants, including those who are new or rebuilding a credit history, or who are new to the country, may have a long history of paying rent on time. With Landlord Credit Bureau, a tenant’s payment habits are part of their credit report and can demonstrate a pattern of consistent and on-time payments. This result is neither theoretical nor marginal; As LCB CEO Zac Killam says, “For most tenants in Canada, paying rent is the biggest expense each month; tenants who use the Landlord Credit Bureau’s rental reports have seen jumps of more than 40 points in just a few months.
The Landlord Credit Bureau helps both tenants and landlords. When tenants have the option to include their rent on their credit report, landlords can see a potential tenant’s payment habits and make an informed decision. Renters benefit as well, as they can build on their credit history with what is possibly their biggest monthly expense.
Put simply, a credit score says a lot about a person applying for a rental, but a landlord needs the whole story to make the best decision possible. The Landlord’s Credit Bureau provides a mutually beneficial opportunity to provide landlords with the most relevant information possible on who will be their top tenants. It’s better than hearing the score; that’s the whole ball game.
Zac Killam, CEO
Homeowners credit bureau
THE SOURCE: Homeowners’ credit bureau
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