Questionable first tenant screening - No DL, history of homelessness, drug use

[Eric Benz]

I am currently renting my first rental property.  It is a 2/1 duplex in a class C neighborhood with one inherited, paying, tenant, and one vacant unit which I'm currently marketing at market rent.  This is an average condition house for the neighborhood and area.

I have set my screening requirements as:

600-650+ credit score
3 times monthly rent
No evictions, violent, or sex crimes
6+ months of job history
Some form rental references.

I have an applicant who meets all requirements except I am unsure if he will have rental references because he told me he's couch surfing right now.  He also told me that he spent the last 10-15 years off and on homeless and was a drug user who's been clean for the past 4 years.  He says he'll be living in the house alone, but his kid may join him at some point during the lease (he's trying to regain custody).  He also has no driver's license, but he does have an out of state ID.

I get a bad feeling that this could turn out bad for me and feel I can decline him legally based on him not having rental references, but on the other hand I think that maybe I could either offer him a month-to-month lease with a guarantee I don't raise rent for 12 months, or require a double deposit.  I haven't gotten any qualified applicants in the two weeks I've had this house on market.

Curious what some more experienced landlords think.  This is my first time marketing a property so I am learning a lot.

[Julien Jeannot]

@Eric Benz

Stick to your criteria for two reason.

1. The criteria is there for a reason, to ensure a successful tenancy and reduce your risk.

2. Fair housing: you must treat all applicants and tenants the same or it could be seen as discrimination.

One thing you could do is ask for a co-signer if the tenant does not meet your criteria.

Keep in mind, a bad tenant is always more expensive in the long run then a vacant property. This can be amplified depend on local laws and cost to evict.