Rental Industry—You Should Be Getting Credit Checks Directly

January 31 2024

If you’re a property manager, you rent out thousands of spaces in a year, and it can be tough to vet each tenant based on their word. This is where the background check steps in. Through such checks, you can assess the tenant’s financial behaviour and the likelihood of timely rental payments. Background checks aren’t just a formality—they’re a shield that protects your property, your investments, and your peace of mind. 

Importance of Credit Checks

Reports from CBC explain that rental scams are common, and any left due diligence can be a big mistake, especially in terms of financial loss and property damage. Also, according to the Human Rights Code, it is legal for landlords to ask for a tenant’s income, rental history, credit references, and credit check before handing over the keys. 

A credit check is the financial information of a tenant’s credit report, which may contain non-sufficient funds payments, bad cheques, chequing and savings accounts closed “for cause” due to money owing or fraud committed, lines of credit, loans, and more. Basically, it includes everything a landlord or real estate broker needs to finalize a deal. 

Challenges in Handling Credit Checks

Real estate brokers dealing with multiple properties at a time may find it hard to do due diligence on each tenant. This frequently results in relying on renters to conduct their own credit checks, which may introduce inaccuracies and errors during the process. Potential risks include incomplete or misleading information, subjective interpretation, and fraudulent activity. 

Pros and Cons of Credit Checks

The pros include reducing the risk of rental default, theft, or fraud, as well as demonstrating financial responsibility toward a tenant. Based on the data provided in the credit check, property managers can make well-informed decisions and predictions regarding future rental payments.

The disadvantages include possible delays and slow verification processes. For businesses that rely on 100% accuracy, having a dependable solution at your fingertips becomes a basic requirement. Choosing to handle credit checks personally instills confidence in the tenant, which may be lacking when relying on tenants to manage this aspect. In property management, depending on customers for such critical checks can lead to costly mistakes. 

Getting Compliant Credit Card Checks in Canada

Triton provides the means to be integrated into your existing infrastructure, ensuring accurate, faster, and secure results within your operational framework.

Triton gives property managers peace of mind by giving them the time they need to thoroughly vet each rental check. With Triton, there’s absolutely no reason to overlook this step in the property management process. Create your account now at tritoncanada.ca/business.