# Credit check on tenants



## rossonero (Jul 16, 2012)

Hello, 

I am new to real estates investments, and was wondering how you perform credit checks on potential tenants? Once you get the tenant's approval, is it better to go through Equifax or Transunion, what steps do you have to take with them?


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## balexis (Apr 4, 2009)

In Quebec, there are a few rental owner associations that will perform these kind of things for you. I strongly suggest doing more than a credit check: verify current employer, past landlord (keep in mind the tenant could've given you his friend's phone number instead of the real landlord), past/current complaints at your provincial tenant board, etc. A credit check is just that, a credit check, nothing more, nothing less. It's not useless but does not tell you the whole picture either.

Which province are you in?


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## tobuyornottobuy (Nov 19, 2011)

I have been searching the same info,
See Berubelands blog http://landlordrescue.ca/breaking-news-new-landlord-forum/
and there is some info on there that is useful


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## rossonero (Jul 16, 2012)

balexis, I reside in Quebec. I know that you can verify the database of all past complaints/issues at the Regie du Logement office. I realize the credit check is just one part of the big picture, would you say the credit check isn't entirely necessary if the employment/past landlord references are solid and there are no issues in the Regie database? Last year I was fortunate enough to have a tenant who showed me his mortgage pre-approval, so I never actually did a formal credit check. 

tobuyornottobuy, thanks for that link. I have to look at it more in detail, but it looks like that the company Tenant Verification is more efficient and less costly than going directly through Transunion or Equifax


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## Mall Guy (Sep 14, 2011)

I have used a company call Quality Credit Services ( http://www.qcsl.com ). I think it cost about $200 (deductible against rental income). There are cheaper alternatives, but they did the report in 24 hrs, checked with previous landlord, and I'm sure they would have check employment if I had asked (wasn't required in this case). I had the potential tenant fill out a credit application, and tenant application before processing the lease.


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## Cal (Jun 17, 2009)

I would think a serious renter would bring there ow equifax report. That is what I had to do in the past when I had been a renter.


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## Berubeland (Sep 6, 2009)

Happy Tuesday Everyone

I recommend a company called http://www.tenantverification.com/?country=CAN

I use them myself, you can get both Equifax and Transunion reports if you like (Not really any benefit to do that) 

There is no membership fee or enrollment fee. You need to prove you own your rental property and confirm identity you can get abridged reports right away and full reports after a site inspections (you need shredder, locks on the doors etc. 

It took about 12 hours for me to get things set up with them. Credit reports cost around $20


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## Causalien (Apr 4, 2009)

I back Berube's recommendation. I use tenantverification myself and I put them through my due diligence grinder before I use them. So you get my seal of approval as well. 

What I did not verify though is whether or not they sell your information to others as a secondary income. I was in a pinch myself to get tenant's credit checked.


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## Sampson (Apr 3, 2009)

I also use TVS and can recommend.

I value the credit check above personal references, previous landlords, and employers. Those can all be falsified.

Personal references can be coached, previous landlords might want their current tenant out, and employers can also be faked. ONly the credit report will tell you if the person pays on time.


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## Berubeland (Sep 6, 2009)

The reason I like to tell people about them is because they don't require a "annual membership fee" which most other services do require. For small landlords with two-three properties that $50 is more credit checks than they use per year and they have to pay for the credit check as well. 

Plus they were really easy to work with and set up the account. 

I used to use Transunion and they charged me $240 or so per year, plus I paid the same thing as I pay with TVS. Plus Transunion was hard to pay. You have to write them a check and mail it in. It took me near to 2 months to set up the account with them too. 

The real reason Transunion pissed me off though was that they do not accept faxed in Landlord &Tenant Board Orders to put them on the tenant's credit report. Equifax does, its a court order after all. Landlords pay millions of dollars worth of credit checks a year but one of the major companies that provide those services won't lift a finger to do their job and protect them. Anyways when TVS gives me a choice I always pick the Equifax report.


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