Account Closed
Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes
10y
Shrug it off and figure your applicant is having a bad day. Stick to the tried and true principles you've learned from other successful landlords on BP.
1 Reply
Tony Velez
OP
Hvac · North Haven, CT · Member since 2015 · 298 posts · 79 votes
10y
Thanks for the advice. This is our first time finding a tenant. We're weeding out a lot of possible tenants with our requirements.
Tony V
1 Reply
Adrienne Bryson
Flipper/Rehabber · High Point, NC · Member since 2016 · 276 posts · 183 votes
10y
You are being completely reasonable. These things are standard, and for good reason.
I think it's silly for her to expect you to just take her word for it that she can afford the rent, has good money management, and regularly pays her bills on time.
Oh well. Plenty of tenant fish in the sea
1 Reply
Todd Plambeck
Agent/Investor · Murphy, TX · Member since 2013 · 542 posts · 304 votes
10y
You're screening standards are working perfectly, they have successfully screened out one bad tenant...
11 Reply
Mags S.
Rental Property Investor · Phila, PA · Member since 2015 · 276 posts · 111 votes
10y
Either you are the first place she has had any interest in or she's not used to quality landlords. Oh well, NEXT!J
1 Reply
James DeRoest
Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
10y
3x. Always 3x. That's the rules of the game to which your non renter is about to discover.
1 Reply
Kelly N.
Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
10y
I've had people argue with me about this, claiming it doesn't matter what they make as long as they pay. I always ask if they have an emergency fund, or what happens when they get sick and can't work, or their car breaks down, etc. Honestly, if someone doesn't make 3x the monthly rent I usually find they can't afford to move in- no way they can save up one month's rent and deposit AND pay their current rent.
1 Reply
Jered Sturm
Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
10y
We now have roughly 200 people living under our roofs. What I have learned is do not let their financial decisions effect your stress levels. Pick your criteria, stick with it. In the long run its so worth the wait to find a qualified tenant. If I had to pick one factor that predicted the tenants quality it would be credit score. Not always but most of the time the better the credit score the easier on all aspects.
here are our minimums that we list in the ad.
Minimum Requirements:
•Monthly gross income at least 3 times the monthly rent (>$2,175 income per month).
•NO convicted felonies
•NO sex offenders
•Minimum credit score of 600 (check yours for free at creditkarma.com)
•NO previous evictions
•Sorry, we DO NOT accept SECTION 8.
3 Reply
Regina Sitterley
Wholesaler · Marietta, GA · Member since 2013 · 106 posts · 20 votes
10y
"Too strict" and "Tenant Screening" don't belong in the same sentence, do they?? Sounds like you know what you're doing to protect yourself and your property. Keep up the great work!
2 Reply
Tony Velez
OP
Hvac · North Haven, CT · Member since 2015 · 298 posts · 79 votes
10y
@Jered Sturm I put 640 minimum score on the ad. Maybe I should drop it to 600
0 Reply
Jim Adrian
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
10y
Even to get a mortgage, banks look at 3x the rent for income. Stand your grounds on this! Take it as compliment that you are going a good job! They would have been a headache later.
1 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
10y
Originally posted by @Jered Sturm:

We now have roughly 200 people living under our roofs. What I have learned is do not let their financial decisions effect your stress levels. Pick your criteria, stick with it. In the long run its so worth the wait to find a qualified tenant. If I had to pick one factor that predicted the tenants quality it would be credit score. Not always but most of the time the better the credit score the easier on all aspects.
here are our minimums that we list in the ad.
Minimum Requirements:
•Monthly gross income at least 3 times the monthly rent (>$2,175 income per month).
•NO convicted felonies
•NO sex offenders
•Minimum credit score of 600 (check yours for free at creditkarma.com)
•NO previous evictions
•Sorry, we DO NOT accept SECTION 8.
The primary issue with CreditKarma is that it's NOT a FICO score, it's a Vantage score and the scales do not match.
A 600 Vantage score could only be a 520 FICO-8 or later. Not sure how they convert/compare. The score is not "weighted", either. It's not how they rate as a prospective renter, or home loan borrower or auto loan borrower, or ... it's completely unweighted.
Also, CreditKarma is sponsored by Credit Card lenders / servicers. It's a marketing tool for creditors, period.
1 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
10y
Originally posted by @Tony Velez:

Hi,
Here is a copy of an email I received from a possible tenant. @Brandon Turner am I being too strict?
Looks like your prospective tenant misunderstood - she doesn't need to increase her income, her income needs to be at least 3x the rent. Looks like she missed that point.
Probably just as well...
1 Reply
Jered Sturm
Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
10y
@David Dachtera Interesting I did not know this. We use Buildium as our management software the screening feature produces a very nice report for us that includes credit score. Buildium uses transunion to run its credit repots. We have simply been referring applicant to credit karma in the ad so they could check it prior to applying saving them and us time as many of our residents don't have a clue what their score is. You seem to be very knowledgable on the subject. Could you recommend a substitute for creditkarma that would allow potential applicants to check their own credit report quick, easy, and prior to applying?
@Tony Velez No. My screening is right for our market, our tenant class, and our risk tolerance. We have different class properties where our minimum score shifts up to 650. IF you fear you're doing something wrong, or fear a discrimination claim you can use the equation I built to help myself select between two very similar qualified applicants. I have this math in an excel spreadsheet and I verify and plug the info in, this graphic is simply to illustrate to tenants how the choice was made. I don't use it much anymore but It may help you are having trouble knowing where to begin.
1 Reply
Dominic Lucarelli
Irwin, PA · Member since 2015 · 152 posts · 52 votes
10y
3x (or more) monthly rent = 33% of monthly income. If your tenant's finances get much worse than this (40% or higher towards rent), then when the car breaks down (as they do from time to time) or an unexpected medical issue comes along (because, who really PLANS on getting sick), they'll have enough income cushion to weather that financial blow AND keep you from evicting them. It's dual purpose. You're helping THEM to STAY in your property!
1 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
10y
@Jered Sturm,
Well, there's a reason freebies are free - you get what you pay for.
Most of the alternatives I might suggest are paid services, or you may need to sign up, get your score / report and then cancel within 7 days to avoid monthly charges.
Obviously, MyFICO would be preferable, but that's $30/mo.
0 Reply
Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
10y
@Tony Velez You are doing nothing wrong. The income level is crucial to you getting paid your rent ever month. You don't want the tenant to be one financial hiccup away from not paying you.
Tenants just get frustrated sometimes because every landlord over and over is telling them their requirements and they are falling short.
1 Reply
Jeff B.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
10y
Originally posted by @Tony Velez:

Thanks for the advice. This is our first time finding a tenant. We're weeding out a lot of possible tenants with our requirements.
Tony V
and that means you are doing it right and saving a ton of effort later - - stay the course :)
1 Reply
Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
10y
3 times the rent is basically the norm . BUT you want to SEE their credit report . had a guy wanting to rent my $1200 a month 2 bedroom .He made $ 4500 a month and had a 700 credit score . but he had a $ 1500 a month truck payment , a $ 550 month bike payment , child support of $ 1200 . and $ 590 . Didnt look bad till I added it up then added the rent and he was over 5 thousand in bills a month . This wasnt taking into consideration , car insurance , electric bill , food , and gasoline .
I had to deny him .
2 Reply
George DespotopoulosBusiness Member
Lender · New York, NY · Member since 2016 · 936 posts · 287 votes
10y
@Tony Velez. No such thing as being too strict. Stick to what you have been doing all along.
MoFin Lending4.9152 Reviews
Website View Page
1 Reply
Matt B.
Investor · Bethlehem, PA · Member since 2016 · 229 posts · 122 votes
10y
creditkarma says I'm a 750. My monthly discover card FICO credit report says I'm an 810. Just to give comparison between creditkarma and a banks credit report pull.
To the OP, that email is just evidence that your screening methods work. For her to give you an attitude like that over your ad is just proof you don't want her. Keep your standards high or it will cost you more in the long run.
2 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
10y
We always use 3x rent rate as a base line for renting. That is just the starting point.
1 Reply
Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
10y
Bye Kelicia...
1 Reply
Chris T.
Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
10y
@Tony Velez
It will be more of a headache to evict or deal with a tenant, than to properly screen them the first time. More work now, less headache later. Trust us!
Perhaps you can word it a little differently in regards to the salary requirement. Put in a specific amount e.g. $3000 gross salary per month etc as a requirement. Keep it simple. No need to say X3 times of rent.
95% of the renters don't see our point of view, and we, as landlords, don't need to justify our reasoning.
1 Reply
Gail K.
Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
10y
Your requirement of an income that is 3x the rent is standard for many, many landlords. This is not unusual and certainly not too strict.
I once had an applicant try to "talk" me into renting them a $700 SFH with a $1000 a month income. Guess how far they got on that one?
It is important that you set your criteria for screening and use the same criteria for every applicant.
Gail
0 Reply

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