Landlord/Rental Investor Tip -- Pull Credit Yourself

Never accept credit reports provided by applicants since they may be ‘doctored’ (altered to show a higher ‘fake’ credit score).

I occasionally see landlords who approve the renter and don’t pull credit. – Always pull credit and try not accept scores lower than 600.

If they had a hardship (such as temporary unemployment, a short sale, etc.), you can still consider a score in the 500s, however, if they have numerous unpaid utility bills or missed car payments on that new Mercedes they just can’t afford, you should run for the hills!

Many times, you will hear potential renters say “I have a recent credit report that a realtor pulled or I pulled my credit myself and have a good score of XXX.”

AGAIN, DO NOT USE CREDIT REPORTS PROVIDED BY RENTERS! – They will use the excuse that they don’t want their credit pulled again since it lowers their credit score. – If their credit has been pulled many times, it is a sign that they are applying for rentals elsewhere and not getting approved!

A couple times, I considered renter’s credit reports which were in the 600s (which is respectable for a renter) only to find out that when I pulled their credit myself, their scores were below 525 (some even in the 400s!). – Make it a practice to run credit yourself and try to only approve renters with credit above 600.   

Sincerely, John Meyers (Meyers Realty -- Chicago)