Credit checks

Today's mail had some more rent checks so I'm updating Quicken and making bank deposit slips. I'm only waiting to receive rent for one unit. January is the slowest month for receiving rents. One reason is because I rent to college students and they go home over the holidays and forget about it. The other reason is because people just paid for Christmas gifts and may not have money left for rent. I haven't had to send a 3 day late notice for years. One reason is because I'll let the unit sit empty before I rent to someone with current bad credit. If they had bad credit in the past, but haven't had problems for 3 years, they are probably very likely to pay on time. I belong to a service called tenant data which provides credit and criminal history checks in addition to rental history information. I charge a rental application fee. I also reduce the first month's rent by an amount equal to the application fee. Basically, I don't charge my customer's an application fee. However, the people with bad credit know they are just throwing their application fee away if they submit an application to rent my places. If you're in this business and not charging app fees you will spend all your time checking out applications and spending a small fortune on credit checks that won't produce viable tenants. Everybody with bad credit will test you. The credit check is the most important tool available to get good tenants.

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