• Landlords are permitted to check a tenant's credit, with permission from the tenant, in order to determine whether the tenant is financially stable enough to rent property. The landlord can use the credit check to screen out unsuitable tenants who are more likely to default on the rental agreement. The landlord can request a tenant credit report directly through TransUnion's tenant screening service, Smartmove or a third-party tenant screening service. Landlords verify they are using the credit checks for prospective tenants by filling out paperwork and providing personal information to the screening services. The requirements are specific to the particular third party screening service but may require copies of business licenses, tax returns listing rental income or other documentation.
  
  

Public Records

• The first item landlords should check on the prospective tenant's credit report is the public record section. This section displays any tax liens, judgments and other public records available. If the tenant has had a previous eviction, the eviction judgment is shown on this section of the credit report. The money judgment associated with the eviction is also displayed here.
  
  

Debt to Income

• You can get an idea of the tenant's debt to income level using the information from the active accounts on the tenant's credit report. The minimum payment for each credit account is available in the account details. You can add the minimum payments together and see how much of the tenant's income is used to pay these debts.
  
  

Collections

• Collection accounts are present in the negative accounts section on the tenant's credit report. A large number of collection accounts can indicate the tenant does not meet his debt obligations. Check the open and closed date on the collection accounts. If many of the collection accounts are open, the tenant may be unable to pay rent or may have to deal with lawsuits and payment demands from collectors.