Should I rent my house to this couple?

Should I rent my house to this couple?

Member since 2023 · 10 posts · 5 votes

Gentle man works two jobs with income $6000 credit score 520;

lady income $4000 credit 620

No Evicrion history for both

not married, don't know if they are in relationship or father and daughter.

my management turn down their screening because the man's score didn't the minimum 620.

My realtor said it's my call now.

just wondering what you guys think? Much appreciated for any advices.

David

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Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
2y

It's discrimnatory to prefer a traditional family.  Don't put that in writing.  Nontraditional tenants are the fodder of cocktail party stories.  :)

In addition to earlier questions:

How long have they lived at previous addresses?  Have they lived in the area long?

Is their income verifiable?  Stable?

Are they fussy/high maintenance?  Anything interesting on social media?

Which applicant would you consider the primary/strongest applicant?

If the criteria is 620, they don't meet the criteria.  If anyone has applied and been denied in this applicant cycle, don't change your criteria.  Be very careful about updating standards mid stream, evaluate between application cycles.

See this reply in the discussion

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    I assume you’re saying $10k/mo income? Any liens/child support/tax debt?

    What’s the rent? Is it under $3,000/mo?

    What’s your local regulations regarding security deposit limits? Extra months prepaid regulations?

    What are the hits on their credit? (Is it medical or failure to pay a mortgage?)

    Are they moving from another rental? Why?

    If they don’t have any income deductions they seem pretty susceptible to a judgement if you bring them to court. 

  • Member since 2023 · 10 posts · 5 votes
    2y

    The rent is $2350/month. 

    I have two major concerns here

    1, the man who is in his 50's and make more money has lower credit score. The young lady just with one year working experience has the higher credit score.

    2, it's hard to tell their father and daughter or in relationship, it's little bit weird. I prefer traditional family, married couple with kids

  • Member since 2023 · 158 posts · 96 votes
    2y

    In my experience, you'll almost always regret renting to someone with a horrible credit score. As you've pointed out, the situation is "awkward" and your gut is telling you to walk away, or you wouldn't be here asking for advice. 

    My advice? Find a family with a better credit score and makes you feel comfortable with the transaction. 

    Good luck. 

  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    2y

    It's discrimnatory to prefer a traditional family.  Don't put that in writing.  Nontraditional tenants are the fodder of cocktail party stories.  :)

    In addition to earlier questions:

    How long have they lived at previous addresses?  Have they lived in the area long?

    Is their income verifiable?  Stable?

    Are they fussy/high maintenance?  Anything interesting on social media?

    Which applicant would you consider the primary/strongest applicant?

    If the criteria is 620, they don't meet the criteria.  If anyone has applied and been denied in this applicant cycle, don't change your criteria.  Be very careful about updating standards mid stream, evaluate between application cycles.

  • Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    2y

    The most important part of your post is your manager turned them down the rest doesn’t matter.  It sounds like you hired someone to do your screening and make a recommendation so I suggest listening to what they say.  It is a slower time of year and vacancy eats into profits but it is important to stay patient.  In a couple years you won’t remember this vacancy but choosing the wrong tenant can leave you with bad memories you may wish you could forget.  

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    Follow your gut, you know what it's telling you. And don't worry about being 'discriminatory'.....just say that you found another tenant before their application went through. But don't state it on the internet!

  • Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
    2y
    Quote from @Bruce Woodruff:

    Follow your gut, you know what it's telling you. And don't worry about being 'discriminatory'.....just say that you found another tenant before their application went through. But don't state it on the internet!

    This is horrible advice. You should absolutely worry about being discriminatory and "preferring a traditional family" is just that.

    Personally I don't set a minimum credit score (although I do review the credit report for any major derogatory items) and would rent to these tenants based on the information you provided. That said,  @Michele Fischer's advice is spot on  - "If anyone has applied and been denied in this applicant cycle, don't change your criteria. Be very careful about updating standards mid stream, evaluate between application cycles."

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @David Lee The only thing that would sway me in this is previous rental history and payment history. With this score he has some issue they should have mentioned.  If he took a hit on medical bills, or another plausible issue reflected in the credit report I get that but would have expected them to mention it and I would expect to see good payment history on everything else. Did the manager share anything?  I would also weigh negatively if the previous rental history is not together because one doesn't have enough income to cover the rent and guess who stays if they split.  If it is a rental history together that history is good no problem, given a plausible reason for the score that you can live with.  Did your relator turn them down or is it up to you, that is two different messages. If you have to use just the number, you need to turn them down.

  • Investor · Richmond, VA · Member since 2023 · 459 posts · 474 votes
    2y

    To avoid equal housing violations you need to advertise your requirements clearly and apply them consistently to every applicant. If you reject the application for a reason not given to other applicants then you are vulnerable to a suit.

    I have found credit score does not correlate with payment behavior so it is not a factor in my decisions. I only use it to see if they will be honest with me about what will appear.

    You need to absolutely not care or even think about things like their relationship. That is a good way to risk a discrimination suit via equal housing violations.

  • Member since 2023 · 10 posts · 5 votes
    2y
    Quote from @Michele Fischer:

    It's discrimnatory to prefer a traditional family.  Don't put that in writing.  Nontraditional tenants are the fodder of cocktail party stories.  :)

    In addition to earlier questions:

    How long have they lived at previous addresses?  Have they lived in the area long?

    Is their income verifiable?  Stable?

    Are they fussy/high maintenance?  Anything interesting on social media?

    Which applicant would you consider the primary/strongest applicant?

    If the criteria is 620, they don't meet the criteria.  If anyone has applied and been denied in this applicant cycle, don't change your criteria.  Be very careful about updating standards mid stream, evaluate between application cycles.

    Am I not allowed to prefer? 
  • Member since 2023 · 10 posts · 5 votes
    2y
    Quote from @Bill B.:

    I assume you’re saying $10k/mo income? Any liens/child support/tax debt?

    What’s the rent? Is it under $3,000/mo?

    What’s your local regulations regarding security deposit limits? Extra months prepaid regulations?

    What are the hits on their credit? (Is it medical or failure to pay a mortgage?)

    Are they moving from another rental? Why?

    If they don’t have any income deductions they seem pretty susceptible to a judgement if you bring them to court. 


     Thanks Bill much appreciated 

  • Member since 2023 · 10 posts · 5 votes
    2y
    Quote from @John McDonald:

    In my experience, you'll almost always regret renting to someone with a horrible credit score. As you've pointed out, the situation is "awkward" and your gut is telling you to walk away, or you wouldn't be here asking for advice. 

    My advice? Find a family with a better credit score and makes you feel comfortable with the transaction. 

    Good luck. 

    Thank you John, you have a good day 

  • Member since 2023 · 10 posts · 5 votes
    2y
    Quote from @Bruce Woodruff:

    Follow your gut, you know what it's telling you. And don't worry about being 'discriminatory'.....just say that you found another tenant before their application went through. But don't state it on the internet!


     Thanks Bruce. I frefer orange doesn't mean I discriminate apple and banana. What a crazy world we are living 

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @David Lee:
    Quote from @Michele Fischer:

    It's discrimnatory to prefer a traditional family.  Don't put that in writing.  Nontraditional tenants are the fodder of cocktail party stories.  :)

    In addition to earlier questions:

    How long have they lived at previous addresses?  Have they lived in the area long?

    Is their income verifiable?  Stable?

    Are they fussy/high maintenance?  Anything interesting on social media?

    Which applicant would you consider the primary/strongest applicant?

    If the criteria is 620, they don't meet the criteria.  If anyone has applied and been denied in this applicant cycle, don't change your criteria.  Be very careful about updating standards mid stream, evaluate between application cycles.

    Am I not allowed to prefer? 
    Not with all the Karen's in the world nowadays....
  • Member since 2023 · 10 posts · 5 votes
    2y
    Quote from @Colleen F.:

    @David Lee The only thing that would sway me in this is previous rental history and payment history. With this score he has some issue they should have mentioned.  If he took a hit on medical bills, or another plausible issue reflected in the credit report I get that but would have expected them to mention it and I would expect to see good payment history on everything else. Did the manager share anything?  I would also weigh negatively if the previous rental history is not together because one doesn't have enough income to cover the rent and guess who stays if they split.  If it is a rental history together that history is good no problem, given a plausible reason for the score that you can live with.  Did your relator turn them down or is it up to you, that is two different messages. If you have to use just the number, you need to turn them down.


     Thank you Colleen

  • Rental Property Investor · Burlington County, NJ · Member since 2019 · 540 posts · 771 votes
    2y

    Hi @David Lee:

    I see that you appear to be leaning towards being discriminatory. I have added to my tasks for today trying to figure out who you are and thereafter reporting you to the relevant body in your area, pointing them to this discussion. If you get a call or are investigated, I want you to know it was me who reported you.  

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @Ron Brady  the reality is that many towns pass ordinances that discriminate against non-families, they are called "unrelated person" ordinances.  A lot of RI towns have them. They prefer families too and in fact that exact statement was in the newspaper this morning.   Can you please report them too when you find someone who will listen. I do get your point.   

    @David Lee  You cannot consider family status except in towns like mine where the town essentially gives preference to related people. I wouldn't voice a preference. Think about what makes you have this preference for your rental and address those issues in your criteria. (Too many cars, too much turnover, no history renting together, too demanding) then find the best candidate.  

  • Member since 2022 · 1k+ posts · 1k+ votes
    2y

    No way, reject.  Thank your management.

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    The credit score isn't as important, it is the history. For example, what if their scores are low because they don't have a lot of debt? I knew someone who was very financially savvy and responsible and because he doesn't accumulate debt, he had a low score.

    What were the landlord references? How much did they show in the bank? Credit is just one factor.

  • Member since 2023 · 10 posts · 5 votes
    2y
    Quote from @Bruce Woodruff:
    Quote from @David Lee:
    Quote from @Michele Fischer:

    It's discrimnatory to prefer a traditional family.  Don't put that in writing.  Nontraditional tenants are the fodder of cocktail party stories.  :)

    In addition to earlier questions:

    How long have they lived at previous addresses?  Have they lived in the area long?

    Is their income verifiable?  Stable?

    Are they fussy/high maintenance?  Anything interesting on social media?

    Which applicant would you consider the primary/strongest applicant?

    If the criteria is 620, they don't meet the criteria.  If anyone has applied and been denied in this applicant cycle, don't change your criteria.  Be very careful about updating standards mid stream, evaluate between application cycles.

    Am I not allowed to prefer? 
    Not with all the Karen's in the world nowadays....

     lol

  • Member since 2023 · 84 posts · 35 votes
    2y
    Quote from @David Lee:

    Gentle man works two jobs with income $6000 credit score 520;

    lady income $4000 credit 620

    No Evicrion history for both

    not married, don't know if they are in relationship or father and daughter.

    my management turn down their screening because the man's score didn't the minimum 620.

    My realtor said it's my call now.

    just wondering what you guys think? Much appreciated for any advices.

    David


     I would stick to your PM's screening requirements. You hired them and should trust their expertise. This is what they do for a living 

  • Property Manager · Illinois, Indiana & Wisconsin but call center all 50 states · Member since 2020 · 92 posts · 32 votes
    2y

    Hello, David! Given the credit score disparity and the man's score below the minimum requirement, it's advisable to exercise caution. From my own experience, it's better to evaluate other potential tenants who meet your criteria to ensure a more secure rental arrangement.

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    2y

    You are paying a PM .... let them do their job. They dont meet the criteria.... decline and move on.  DO NOT talk yourself into a tenant.....

    Credit score... the score has some influence but WHY the score is high or low is the key, not just the number. A bunch of defaults and missed payments vs high debt from school or medical issues vs not building a history of income and debt payment to generate a higher score. The WHY is important.

    And you are skating on VERY thin ice to start making any decision based on "preferences" when it comes to gender/age/race/marital status etc...all protected classes...bad idea. 

  • Member since 2023 · 10 posts · 5 votes
    2y
    Quote from @Jordan Myer:
    Quote from @David Lee:

    Gentle man works two jobs with income $6000 credit score 520;

    lady income $4000 credit 620

    No Evicrion history for both

    not married, don't know if they are in relationship or father and daughter.

    my management turn down their screening because the man's score didn't the minimum 620.

    My realtor said it's my call now.

    just wondering what you guys think? Much appreciated for any advices.

    David


     I would stick to your PM's screening requirements. You hired them and should trust their expertise. This is what they do for a living 


     You right, but my realtor kicked the ball on my side. Rejected already, thanks Jordan

  • Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    2y

    @David Lee- can you get  more detail on their credit  histories  ( and not just a  vague  reference on what  score they dont have ...)  ...ask prop mgt  compnay for more  credit details and make a  decsion .....if  he has a  credit score of  480 - this is a lot diffrent than having a score of 619

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