Mar 23, 2020 MicroBilt News
Rent is the largest monthly expense for most tenants. A Harvard University study found that 25 percent of tenants spend half their income on rent; half of all tenants spend 30 percent of their income on rent. Knowing how tenants are meeting their largest monthly obligation allows businesses and future landlords to obtain a more complete picture of a prospective tenant or customer's financial history.
Knowing tenants' financial history and other information about their backgrounds can help landlords find quality tenants. While credit scores are an important aspect of that background, other factors are important, as well. Past evictions, for example, are a key predictor of future evictions. A recent study found that out of residents that were ultimately evicted by their landlords, 28 percent previously had been evicted. Evicted residents also had twice as many rental collections as other tenants. Debt-to-income ratios also are an important indicator of a tenant's ability to pay the rent.
Microbilt can help prospective landlords and other businesses to conduct thorough background checks, choose the best applicants to lease their property, and assess and mitigate risks. In addition to credit checking products, Microbilt offers several other tools. These tools allow landlords and businesses to check:
- bankruptcies, liens, and judgments
- evictions, liens, lawsuits, and judgments
- criminal history
- whether a check is likely to clear and other banking information
- employment and education history and verification
- motor vehicle search, including lien information
- identity, and
- whether an individual is on the OFAC Watchlist