What is a good credit score requirement?

[Michael Maliszesky]

Hello, I just listed my first rental. I am currently asking for a 600 credit score as one of my requirements. But I'm thinking that might be too high and I should lower it to 550. 

I would like to know what others use for their credit score requirement, or any tips on setting tenant requirements in general.

[David Ramirez]

I would keep it above 600 to minimize the risk of default on payments

[Mason Liu]

Agreed with @David Ramirez . 550 is a very low credit score, I'd say minimum 600, but I'd also take a very close look at the credit report for anyone who has a credit score between 600-650.

[Bjorn Ahlblad]

Our minimum is 660, that too is way below the average.

[Richard F.]

[Phillip Austin]

A minimum of 600 is most common in the industry. However, you have to consider your market as well as your individual property. I wouldn't go below 600.

Personally, I prefer a 650 minimum but I'm also in the Denver market so it's a little easier to find tenants with higher credit scores.

[Karl B.]

What class of rental is it? 

I do mostly C-class and my minimum is 625 and no prior evictions. I also require 3.5 times earnings as most of my rentals are one bedroom and are currently renting in the $550 - $675 range (for my SFH I require 3.0 times earnings).

[Account Closed]

600 is a good benchmark minimum, could be even higher depending on how nice the property is (what rents are going for). Higher rent=higher credit score needed. 

[Michael Maliszesky]

Quote from @Karl B.:

What class of rental is it? 

I do mostly C-class and my minimum is 625 and no prior evictions. I also require 3.5 times earnings as most of my rentals are one bedroom and are currently renting in the $550 - $675 range (for my SFH I require 3.0 times earnings).

 I guess it is a B-class, not sure. It is in a suburban area in Virginia Beach. 4 bedrooms 2 bath. Listing it for $2,300.

[Bob Stevens]

Quote from @Michael Maliszesky:

Hello, I just listed my first rental. I am currently asking for a 600 credit score as one of my requirements. But I'm thinking that might be too high and I should lower it to 550. 

I would like to know what others use for their credit score requirement, or any tips on setting tenant requirements in general.

 Depends where, if inner city, 550ish. Also why not go govt, I put in 90% government tenants. Higher rent and secure, just screen well 

Good luck

PS hire a PM co, 

[Patti Robertson]

I don't personally have a minimum credit score.  Rather, I evaluate the credit and civil judgments for threats to the income, overall payment patterns, total amount counted as delinquent/collections.  Part of the credit score formula is average age of the credit lines.  Young people tend to have a lower score, just because of their age.  A person with zero in collections, but only one or two trade lines that hasn't been open long because of their young age, is going to have a low score, even though they show a perfect payment history.

[Nathan Gesner]

Once they get below 650, the risk of problems increases dramatically. I would set your floor at 600.

But, a better solution is to look at the whole person (credit score, criminal history, Landlord references, length of employment, and other factors) to determine a level of risk, then act to deny them or find a way to mitigate the risk.

Some managers/landlords - including myself - will rent to anyone . . . as long as they are willing to pay the price to mitigate the risk. :)

[Paul De Luca]

Quote from @Michael Maliszesky:

Hello, I just listed my first rental. I am currently asking for a 600 credit score as one of my requirements. But I'm thinking that might be too high and I should lower it to 550. 

I would like to know what others use for their credit score requirement, or any tips on setting tenant requirements in general.

 We require a minimum credit score of 600 and have had great tenants so far. It really weeds out the undesirable & high risk renters. Sure some of them that are borderline in the 580s or 590s might still be good tenants but it's better to be firm with your criteria.

[Tracy Brown]

My minimum score that I will accept is 640. A 550 scores tells me they have some outstandind debts. (If you plan on accepting a low score consider other compensating factors; Job stability, Prior rental history or a co-applicant with good gredit)

[Jacob Sloop]

@Michael Maliszesky

Given the condition of the property you should have a very high amount of demand being a SF in Virginia Beach,  I wouldn't settle for a less than ideal tenant.  Taking your time on the selection process is going to much more valuable than anything you "save" by filling the vacancy.

I sent you a message, would be happy to have a phone call and discuss further!