Renting Single Family Homes To Bad Credit Applicants

**beer234** · 01-07-2008, 09:16 PM

I know each case is unique but for anyone who rents single family homes, do you have any suggestions or guidelines? Do you have any set credit score minimum or do you pull the credit report and review each one to determine the applicant's situation? I realize that things like rental history, income and job history also weigh heavy but was curious what your personal stance on credit score is.

Thanks
John

**LOTrainer** · 01-07-2008, 09:45 PM

Originally Posted by beer234

I know each case is unique but for anyone who rents single family homes, do you have any suggestions or guidelines? Do you have any set credit score minimum or do you pull the credit report and review each one to determine the applicant's situation? I realize that things like rental history, income and job history also weigh heavy but was curious what your personal stance on credit score is.

Thanks
John

Hi John, I rent out one house and one condo right now. Essentially I check their credit and I also do a background check. The job history has to be consistent within the past year with no major gaps, and they have to provide proof of a year of rental payments made on time. Other than that, 2 months security deposit, and 2 months pay stubs to show consistent income.

With regard to the personal credit score, I don't have a minimum at this point.

**Floridadeals** · 01-09-2008, 09:24 AM

Originally Posted by beer234

I know each case is unique but for anyone who rents single family homes, do you have any suggestions or guidelines? Do you have any set credit score minimum or do you pull the credit report and review each one to determine the applicant's situation? I realize that things like rental history, income and job history also weigh heavy but was curious what your personal stance on credit score is.

Thanks
John

I would say this totally depends on the pool of renters you are fishing in. If I have lots of renters to chose from then I definetly will pull credit and I'm looking for a 650 or better. However, if your having a hard time finding a renter or your market doesn't have many renters then you must consider the economics. It often make more financial sense to be able to fill a rental quickly with a reliable renter who pays less, has poor credit or can't give a deposit than to have a property sit vacant for 6 or 8 months lossing my while you wait for someone with a good credit score. Its the old saying 50% of something is better than 100% of nothing.

**Dave1000k** · 01-15-2008, 02:30 PM

I screen tenants for a living for a lease to purchase company. Credit scores do not affect me as much as why the scores got that way.

I have an interview with each potential client and ask questions regarding job history, rental history, monthly income, and monthly debt load.

I use a percentage scale similar to what mortgage companies use for debt to income ratio and take the other info in to consideration to make a decision.

David Harrison