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Why a clean credit record is vital for tenants

Why a clean credit record is vital for tenants

Author: Pranil Maharaj
Date: 2017-08-11

With fierce competition in the rental market, tenants are finding it increasingly difficult to find rental property. In this market, landlords are looking closely at tenant's creditworthiness.

The competition for rental property coupled with changes in legislation has led to landlords and rental agents scrutinising each potential tenant, which has also made it harder for tenants to find a rental property. As a result, landlords and management agents have introduced more stringent screening criteria to ensure they select the right tenant from the start. In today's market, the creditworthiness of a tenant has become more important with landlords starting to check credit reports to establish whether the potential tenant has a clean credit history.

Here are some helpful tips to avoid adverse information on their credit history:

Read all clauses before signing a contract with a creditor

Make regular payments to creditor by the 7th of each month

Keep a list of all creditors, the basis of credit and amount to be paid

Keep a record of all payments made to creditors

If you relocate, notify all creditors of the change of address

Attend to all correspondence from creditors or their legal representation.