4 Tenant Screening Factors More Accurate Than Credit Scores
These days, landlords and property managers are often content to assess a potential tenant based only on that person’s income and credit score. It’s a practice that has led to far too many bad deals for landlords, and it needs to stop.
Credit scores vary from one credit bureau to the next. An applicant could have a score of 720 on TransUnion and 668 on Experian. These companies have different ways of calculating scores, and neither is necessarily right. That’s why mortgage companies typically pull scores from all three major credit bureaus and often settle on the middle score or the average of the three.
The point is that a score is just a score. After the 2008 housing crash, millions of Americans watched their credit scores plummet. Did that mean they suddenly became unworthy of renting? No. Many had well-paying jobs, families to feed, and the ability to pay their bills. Their credit scores were not reliable indicators of their value as tenants.