1 applicant qualifies, the 2nd doesn't

[Roy Gutierrez]

Hi,

I have 2 young ladies that want to rent one of my properties, both have decent credit (no marks for late payments or delinquency), one has very little debt, makes around $55K and around $100 monthly total expenses per the credit report; second applicant makes around 38K but I see significant student loan debt, I'm still trying to understand the credit report, no negative marks but in some of the loans there are no payments for a few months or intermittent payments, seems a big portion is deferred, but if she was obligated to pay all the loans, her entire monthly paycheck would have to go into paying her loans, so if she was trying to rent by herself it would be a big resounding no.

I'm asking for $1,200/month, so the one applicant might qualify to cover the rent by herself (have to ask for more paystubs since she also earns commission). If I decide to rent to them any suggestions of how I need to setup the contract? 

Thank you!

[Ron Rohrssen]

I've had this situation many times. It sounds like you're doing well in looking at their cumulative picture.

I have used a co-signer, typically a parent, in the application process. I give the co-signer an application and process a background check on them. They pay for the application/background process.

I always start with a showing of the rental unit. That gives me time to get a feeling for the prospective applicants. I casually ask open ended questions and they usually offer up a lot of information. If I suspect that they want to pursue an application, i begin to explain that process and my rental policy. That includes credit score, 3x income to rent, etc. That also gives me an opportunity to mention the option for a co-signer.

If they want to pursue an application, then i explain all of that again with written copies of the rental policy, etc. This is another opportunity to talk about credit. I encourage then to seek a free credit report if they don't know their score.

Fortunately, i haven't had to pressure