Applicants with varying credit scores

[Yannie Gold]

I require my tenants to have a minimum credit score of 680. A group of four are applying together for my 4 bdrm property. They are an engaged couple, the guy’s mother, and the woman’s brother. I was told that out of the four adults, two have credit scores above 700, one has 650, another has 600. Their combined income does exceed 3x the rent. But none qualifies with just one person’s income. I haven’t run the credit checks yet because I normally would simply reject when I was informed the required credit scores weren’t met.

Assuming what they told me about their credit scores is true, would you rent to them? I‘m also concerned that the boyfriend and girlfriend may break up and one moves out. My contract does specify that everyone on the lease is responsible for paying the entire rent. But it still created trouble in the past when some tenants wanted to leave earlier due to a deteriorating relationship.  

[Sean McKee]

Quote from @Yannie Gold:

I require my tenants to have a minimum credit score of 680. A group of four are applying together for my 4 bdrm property. They are an engaged couple, the guy’s mother, and the woman’s brother. I was told that out of the four adults, two have credit scores above 700, one has 650, another has 600. Their combined income does exceed 3x the rent. But none qualifies with just one person’s income. I haven’t run the credit checks yet because I normally would simply reject when I was informed the required credit scores weren’t met.

Assuming what they told me about their credit scores is true, would you rent to them? I‘m also concerned that the boyfriend and girlfriend may break up and one moves out. My contract does specify that everyone on the lease is responsible for paying the entire rent. But it still created trouble in the past when some tenants wanted to leave earlier due to a deteriorating relationship.  

I would say some of this would depend on the market. My class C rentals this is a common scenario and I have this situation frequently. My nicer units I might be more hesitant on the situation, especially if I know I could get occupants that all met the criteria.

I’ve had multiple relationships end and someone moves off. I let whoever moves off know they are still fully responsible for the terms of the lease. I credit report and have yet had a major issue.

[Nathan Gesner]

Quote from @Yannie Gold:

I require my tenants to have a minimum credit score of 680. 

Why do you have a standard if you don't intend to adhere to it?

Here's a common scenario. Two people apply to rent your apartment. One of them has a great application, and the other has a poor application. You assume the individual with a good application will keep the other straight and choose to rent to them. The good applicant eventually gets tired of carrying the water for the other, leaves, and you are stuck with a bad tenant.

[Wesley W.]

I use the average credit score of all of the adult occupants measured against my minimum.  Also, each tenant is jointly and severally liable for the contract.

[Jake Knight]

Credit scores are just one metric to consider. We've had great tenants with lower credit scores. Fair credit rating starts at 580 not 680 and these are renters not buyers. I guess if demand is relatively high in your area, you can elevate your requirements as high as you want.  We would typically average all credit scores together to come up with a final number.  Have you checked their rental history?  Credit scores are tricky because there could be items like medical debt or student loan debt that weighs the score down.  Just something to consider.

[Jamie Petraglia]

If some applicants fall below your requirements, then everyone would be considered "conditional," you can raise the security deposit to mitigate your risk of someone breaking up or defaulting.