I ran a credit report on a potential tenant and it came back with score of 508. He has a bunch of collections - 8 medical, 1 charter communication and 2 student loans. On the other side, he has a good job, good income and good previous landlord reference saying he always paid on time and took care of the place. I am not sure what to do..
Sometimes you go with the gut feeling .
If everything else looks good I would keep him as candidate. How recent are the delinquencies? My wife still gets a mark on her credit from a missed car payment over 6 years old.
If the credit issues are no less than 3 years old, I would consider them. If they are recent, the good job doesn't matter. A person can make all the money in the world and still choose not to pay their basic obligations.
I hope that you verified that you were actually speaking with his actual landlords and not just some friends of his.
What kind of area is this rental in? Are you in a situation where you have to approve a tenant with a 508 credit score? If not, I would be patient and move on. A 508 is a very low score.
If you are in an area where you have to deal with tenants of this caliber, at least be sure to get 2 months security.
@Damon Duperre Yes I verified that. It was a property management company phone number from a different town he lived 1 year ago. I thought it was weird she remembered him right away and said great things. As right now he lives with a relative until finding a place.
@Michael Noto This is a good point. In my area I don't need to deal with tenants of this caliber. I think I might skip him.
Also, do u usually tell the person he had a low credit score or stick to only..your application was not approved. What is a good way to turn down a tenant?
thank you all
Join the Largest Real Estate Investing Community
Basic membership is free, forever.