Why Do Landlords Need to Do a Renter Check?

If you are thinking about becoming a landlord, you probably have a list as long as your arm about the risks of becoming a landlord. At that top of that list will be having to evict someone. Eviction is a long drawn out process and it will cost you money in the long run.

If your tenant has not paid rent, then you will have to cover the costs so that you don't default on your mortgage. Then you will have to pay legal fees to get the necessary paperwork in place, so that you can evict your tenant. If you have a good insurance policy, then the cost might be covered on the policy, you just have to check your paperwork.

The best way to keep yourself covered is to put some money aside just in case your tenant runs into money problems and refuses to leave the property. This way, you won't run into money problems yourself.

If you are just starting out as a landlord and you have your first tenant in place, you need to ask yourself if you are fully prepared for everything that comes with being a landlord. The best way, bar none, to protect yourself against tenant problems, is to do some renters checks on the tenant before you give them a rental agreement.

A rental check is the same as a background check. You can check their employment history, criminal background and ask for any references that they may have. Make sure that one of their references is their previous landlord, so you can check if they paid their rent on time, or if there were any issues with damage to the property.

You need to check their employment history because you need to know if they are truly employed and able to pay their rent. You can check this before you go to the credit check company, by asking the tenant for the details of their job. Then you can phone up and make sure they are employed there.

Now, you want to check their criminal record. If they have a criminal record, it is your prerogative on whether you give them the property to rent, or not. If they have a long criminal record, they might not be trustworthy. However, they also may have learnt their lesson and were rehabilitated in prison. If this is the case, then you should think about giving them a chance.

Just have a chat and be honest with the person and see how they come across in person. They might impress you and feel remorseful about their checkered history. If they seem to be proud of what they have done, then you should find another tenant.

If you have gotten to the stage where you need a renters check, then you need to inform the person and get them to sign a consent form, otherwise the check is unlawful. You should hire a credit check company as well. If you do the checks yourself, you will not have access to the same resources that they do and you might break the law by looking in places that are data protected.

If you are thinking of becoming a landlord, then you need to consider the monetary and political consequences of not having a credit check. Over 80% of landlords now have the credit check before they have the tenant sign the contract. Make sure you are within this 80%, otherwise you will be leaving yourself open to a lot of trouble in the future.

Eight Steps To Rid Your Credit Report of Old Debt

You may have been laid off, endured a tough divorce or simply fell behind on paying your bills. Those lapses in payment to your creditors may have happened a decade ago, a year ago or in the past couple of months. You get back on your feet but those old delinquencies still haunt you. Can you get your past mistakes erased from your credit report?

Yes, you can, but it may take some time. Delinquent debts can stay on your credit report for up to seven years. A Chapter 7 bankruptcy can stay on your credit report up to ten years. You can better your credit report and increase your chances to get loans for the things you need using these eight steps.

1. Get your credit reports from the three credit reporting agencies--Equifax, Experian and TransUnion. By law you can request a free report from each of the agencies every 12 months.

2. Determine if the information is correct. The date you became delinquent and continued to be delinquent is the date that the seven year clock begins. The ten year anniversary of your Chapter 7 bankruptcy is the day it is filed.

3. Let the credit bureaus know about the errors. Do not call, email or use the online capabilities that the bureaus afford you. Write them a letter sending it return receipt requested, keeping a copy for your file.

4. Write a letter to the debtor or collection agency. Since delinquent accounts are often sold to different collectors, you may have to do some detective work to find out who has the loan.

5. What if the mistake is not corrected? Keep contacting the creditor and or collection agencies. Be persistent. Write the president of the company if necessary.

6. Get the government involved. The Federal Trade Commission enforces the Fair Debt Collection Practices Act. You can also call your state attorney general.

7. Talk to a credit professional. He or she can act on your behalf and help you get the negative information corrected or removed from your credit report.

8. In some cases, you may have to get an attorney. Make sure you keep a file of all of the paperwork and documentation related to this debt.

Many people chose to pay off the old debt and that is fine. But don't expect that to help your credit score immediately. Older debts have less effect on your credit score. Renewing the debt by making a payment brings the date of last activity more current and starts that seven year clock start ticking again and it may temporarily lessen your credit score. Hiring a professional to do your credit restoration will help you avoid the pitfalls of doing "what makes sense".

How Depreciation Reports Help in Upkeep and Repair

In business, sunk costs are unavoidable. A sunk cost is basically a catch term for any equipment that costs businesses money they tend to keep for a while. Examples include computers, faxes, office furniture, the building itself, and the like. Now the thing with items like this is a business tends to acquire them and forget about it. Depreciation reports help avoid this. Those six new computers that are now old and without a review you'll have no clue what their value is and how they relate to the company overhead.

This is why depreciation reports are so important. Deprecation is an important business cost as it relates to value lost in a purchased item. For an easy example think of your car's deprecating value as time goes on. It'll never be worth what you paid for it (unless it's a rare collectable) but it still retains some value. The following reasons are why your company should get depreciation reports done.

Tax Benefits

This is a major one. Companies can claim a tax credit on the desperation value of their assets. In simplistic terms the loss of value is considered a business expense. The company needed equipment for day-to-day operations to continue, so this loss of investment value can be claimed. Interestingly this credit can be claimed in a few different ways depending on which makes the most sense for the business. The only way to know the credit you can claim is through depreciation reports. Plus simply knowing the total value for a business is important and this value includes everything owned by the business.

Equipment Lifespan

An annoying factor of property assets is it is always in flux. No one office had everything bought at the same time. Through depreciation reports you can get a good idea of how old the company assets really are. Remember company assets cover a lot of things. For example if the office computers have deprecated to practically no value you can replace them without losing the original investment. This is because any credits you could have claimed on the equipment has already been used by this point. If there is still some value left in the older equipment replacement may merely be scheduled at a later date.

So you might decide to buy new computing equipment on the grounds of increased functionality and further deprecation value you can claim throughout the life of the equipment. Outside of the costs realizing equipment in general is getting old could be reason enough for you to replace it. The key is that depreciation reports give you enough information to make a judgment.

Depreciation Reports Help Repair Plans

Upkeep is essential to any business. However no business can afford to repair everything at once. Any attempt at this would be disorganized and probably lead to catastrophic failure. In any large-scale operation you're going to need a plan. With repairs they are often done in phases. With depreciation reports you can plot out how you want to do the repairs. You can take several different approaches to this because everything deprecates differently.

The dulling exterior decoration may take a backseat if the building's internal wiring is due for regular repair work. You're going to want to clean up the outside paint job at some point but you know now that there are things that have to be replaced or repaired first. With depreciation reports you know what order to approach stuff like this in. While repairs are good fixing the outside while the store fuse box catches fire due to age is probably not a good idea.

Credit Unions - Advantages and Disadvantages

Credit unions are similar to banks but are owned and operated by its members. Just like many things in life it has its pros and cons. Some may prefer to open an account with a large branch while others prefer to go with a small, friendlier.

Once you open an account with a credit union you automatically become a member. Their goal is to deliver great customer service and please their members. At these banks the members are the owners. At some unions they even allow members to vote on policies concerning their account. At larger banks their main focus is the profit. This is why there are so many fees for every little transaction you make. Anything they can do to increase the revenue of the bank they will.

Another advantage of using a credit union is the low fees. At larger banks they tend to charge a fee for everything. There are overdraft fees, ATM fees, service fees, and much more. At a credit union the overdraft fees are lower and there are no ATM fees. These lower fees mean you are saving money. There are no minimum balance requirements and most accounts are free. The only disadvantage is that although you save money on ATM fees. This means there are fewer of them so they are hard to find. In the event that you have to use any other ATM you will still be charged that bank's service fee.

Credit unions offer lower interest rates and higher savings rates. Again, their goal is not to make a profit but to provide the best customer service. The interest rates on loans are lower than that of larger banks so again, you save money. At some credit unions there is a fixed rate that interest on loans and credit cards cannot exceed. unions are also willing to work with their members. Weather you have poor credit or bad credit, they are willing to seek a loan that best fits your needs. A credit union may be the best option for people who are looking to own homes but don't have the best credit. There are even programs available to help members get control of their budget and improve their credit.

A disadvantage to credit unions may be the qualifications to join one. You may have to live in a certain area, or be enrolled in school, or work for a certain employer. However, once you join the credit union you are a member for life. If you one day no longer meet the requirements you are still a member. The only requirement may be that you keep an account open in order to keep membership.

As I mentioned before credit unions are smaller branches so their ATM's are not as accessible. They don't make the money to put ATMs up all across America so their ATM's are usually local. With larger banks you can find an ATM all across the country. This can be a huge disadvantage because of the fees charged by other branches to use their ATM's. The plus side to this is that some credit unions will reimburse whatever fees may be charged by other branches.

Another disadvantage of using credit unions is that their technology is limited. Being that they are non-profit they don't have the funds to invest in technology. Some credit unions don't even allow online access to accounts while other sites are fully functional. Being that we live in a world where technology is advancing and used for most things this may be a problem for some people. People should look into this feature before choosing a credit union if online access is important to them.

Unions basically offer all of the same products as a large bank. This includes credit cards, debit cards, mortgages, business loans and checking accounts. The only problem is that since they are non-profit they don't have the funds to advertise so that people can be more aware. Since a lot of people are uninformed about them they don't generate the funds that a larger bank would so some of the amenities are different. I do believe that if more people were informed about all of the advantages of a credit union they would choose it over a larger bank. The advantages are greater than that of a regular bank and the disadvantages are less. At the end of the day the credit union would profit more and so would its members.

Six Items on Your Credit Report May Cause You Trouble

It is a universal fact that people go into business to earn money through profits. This is true for all companies, including lenders, who expect profit from the interest you pay on your loans. If you default, that profit could be reduced or, even worse, lost altogether. This is why one of the most important tools used by lenders and creditors is credit report, and by extension, your credit sore. This information helps them understand the risk they have to consider when lending you money.

Because of all these, it is now important, more than ever, that you check your credit report regularly. Need another reason? Here are six items found in there that could alarm potential lenders - even if you have a great credit score.

1. Multiple Credit Lines - Even if you're current, opening new cards in a quick succession - two or three in a few weeks or months - still alarms lenders. Open credit is still considered a risk because you could get in over your head at any time. Easy, expensive credit obtained by rapidly opened accounts is a red flag that may indicate cash flow problems.

2. Short Sales - Because it is a negotiated retreat, a short sale does not technically hurt your credit score. But because you paid less than you owed, you have broken the unspoken rule of lending and this fact alarms lenders. That makes all future lenders think twice about doing business with you because the lender in that particular transaction lost money on you.

3. Co-Signed Loans - Lenders interpret co-signed loans as you being responsible for someone else's finances. They may think twice about lending you money because you have raised your risk, even if you're just helping out a friend or a family member.

4. Minimum Payments - Although minimum payments keep you current and guarantees a "pays as agreed" indication on your credit report, they can still cause trouble. Because you are only paying the minimum "acceptable" payment, this may indicate having too many open debts and other financial troubles. Getting new credit will be more challenging if this is on your credit report.

5. Too Many Inquiries - When you apply for credit, the lender access your credit report and score. This is recorded and new lenders see when each inquiry was made. A lot of inquiries in a short time might indicate you're desperate for credit - and not getting it.

6. Cash Advances - Because they are the most expensive credit products in the world, this item should be avoided as much as possible. They indicate that you have no other solution to your troubles except obtaining credit, however high the interest is.

Understanding Fiscal Cliff In The USA And Its Potential Impact On World Economy

The word "recession" has a strong connection with the United States of America. Financial experts often say if America catches cold then the entire world sneezes. However, the statement is true in its own terms and there has been enough proof in the past. Year 2008 and 2009 witnessed a bloody recession and the entire world succumbed to the financial troubles of the USA. Almost every country in the world fell flat in their economic growth and in rising unemployment rates. The past 2 years have witnessed a slow and steady growth across the globe. However, experts warn of the fact of falling into another recession if the "fiscal cliff" in America is not resolved within a week. So, what is that "fiscal cliff" in the USA and how it is going to affect all? Let's take a look at this problem.

Fiscal Cliff - What Is It Exactly?

The US government has proposed to cut back of over $500 billion in spending and is hopeful to raise the income tax rates. Reduction in spending by the government indicates the revival of stimulus package or withdrawing it from the market. Government has decided not to pump in fresh money to stimulate growth in market. The current allowances on spending comes to end by December 31st and the government has to take a new decision before that.

What Is The Real Situation?

The President of the USA, Obama likes to continue with the stimulus package offered but is being deterred by the Republicans. Currently, the government is borrowing about $16.4 trillions per year. It has increase this cap and borrow more more to avoid a default. The Republicans want a cut in spending by the government.

Possible Outcome:

If the US fails to meet the deadline, it could see a drop in its GDP by about 0.5% and the unemployment rate could spark to 9% by the year end. It will again trigger a fresh wave of recession across the globe. The problems could worse if Eurozone fails to solve its own problems in Spain, Ireland, Portugal and Greece.

Problems for India:

At the current state, India is badly exposed to all these financial troubles. Our economy is struggling hard to save its face. With a series of bad government policies, in effective implementation of economic reforms, Indians will have to face the wrath of recession. Our economics were strong during 2008 recession and the whole financial system was under control because of which India was isolated in the past. However, the present conditions make it worse for India.

If the fiscal cliff problem is not resolved, there will not be tax breaks for the American companies because of which they will restrict their spending. Indian exports might face a severe crunch and FIIs would pull out their funds from the market. A dip in Sensex and Nifty would again trigger a wave of no confidence in running business in our country.

What Is the International Monetary Fund (IMF)?

The International Monetary Fund (lMF) - Is the organization that was established by the Bretton Woods Agreement of 1944 which came into operation in March 1947.

The fund was built as a framework for international cooperation in the monetary field with the removal of foreign exchange restrictions, designed to stabilize exchange rates and facilitate a multilateral (multilaterism) payments system between member countries.

Forty one years after it was established, the IMF boasted 181 member states. Under it's 'Articles of Agreement', members were obligated to observe an exchange rate, fluctuations in which should be confined to 1% around its par value. This value was quoted based on the US dollar's value which was, in turn, linked to the price of gold.

In December of 1971 the IMF's leading 'Group of Ten' nations, met to agree upon a new 'central values' of currencies designed to achieve a dollar devaluation of 10% with a margin of ±2.25%.

IMF Members finance their central fund through quotas that are dependent upon their individual economic strength. Quotas were raised in 1994 and totaled SDR (special drawing rights) $145.3 Billion USD. This fund is designed to tide member states over through times of temporary 'balance of payments' difficulties and thus help stabilize exchange rates.

Borrowing ability and voting rights are determined by this quota. Any IMF member dealing with a temporary balance of payments deficit issue may obtain foreign exchange from the central fund in exchange for its national currency, which it is obligated to buy back within a period not to exceed five years. Any Member left owing the fund after this grace period has expired is required by their agreement with the IMF to consult on planned steps to improve their balance of payments in order to repay the fund.

During the early 1960s it became evident that there was a strong case for increasing the fund's balance. Soon after, the 'General Arrangements to Borrow' was signed by ten member states in 1962. They were: the United States, the UK, West Germany, France, Belgium, the Netherlands, Italy, Sweden, Canada and Japan. These members are called the 'Group of Ten' or the 'Paris Club'. Following this, a $6.7 Billion credit was made available to the IMF, should it be required.

This initial increase has since been renewed regularly and in 1993 the limit was increased to SDR $18.5 Billion. Member states experiencing trade financing difficulties may also be eligible for 'standby credit' from which they may draw as required. The Fund may not, however, make use of any of the funding available in this standby plan without prior consent of the lending countries involved.

At the IMF meeting in Rio de Janeiro (September, 1967), the creation of an 'International Unit of Account' was agreed to in principle. It was ratified by an all member vote in July, 1969.

This 'Unit of Account' framework allowed for annual increases in available credit to be potentially distributed to Fund members through a method of SDRs (special drawing rights).

These credits may be distributed to IMF countries as a proportion of their quotas and could be included in the state's official reserves; the first, $3.5 Billion, was distributed in this way on I January 1970. Total SDRs are now about $21.4 Billion. There is a limit on the acceptability for payment in SDRs, in that no country need hold more than twice its SDR quota. In 1976 an agreement reached in Jamaica led to a major revision of the fund's articles.

Most importantly, there was no longer a requirement for member countries to subscribe 25% of their quotas in gold, and gold was no longer the unit of account of the SDR. The IMF also gave itself the right to sell any of its gold holdings.

Additionally, the original articles required a commitment to fixed par values, this stipulation was now abolished.