I have three applicants (wanting to live together) for my single family home that are very inexperienced. They moved away from their parents last year to move to another state and are moving back to this area (home). They have new jobs at very good employers and make well beyond three times the rent. They have 500-600 credit scores due to lack of credit as opposed to bad credit. Their only landlord from when they moved away says they are great and wishes they would move back so he could rent to them again. Says they take very good care of the property. Here are my questions:
1. Two of them are a couple and have been together for only a year. How should I handle it if they break up and one leaves. I know that they are all still responsible for the rent but specifically what do I do? I've never had a situation like this to handle before.
2. Should the low credit score and lack of previous landlord references concern me? The one they had made them sound ideal so I don't think it should be an issue but curious of your thoughts. BTW, I used a tip I learned here: when I called him I said I wanted to speak to him about his rental property on "x" street. I could tell he was legit!
Thanks for you help!
I stay away from applicants with no references and no history. We need to connect the dots.
The flow of applicants should be great enough that you several applicants to choose from. Increase the flow by quality and price of unit. I have a property right now for rent that has too much activity. It is impacting my decision making because I have too many calls and messages to sort through accurately.
Have you done background checks on everyone over 18 that will be living there? Have you confirmed their employment at their new jobs and the hourly rate or salary they will be receiving? Do this first.
After that if there are no red flags you can collect 2 months security. This is what we do when the income is there and the credit is bad.
As far as the relationship goes, put them both on the lease and treat them like normal tenants.
CO-SIGNER for each applicant
Thank you for your help!