I understand the 3x income requirement rule plus background check, but do you landlords require/advertise a min. credit score? Property should gross about $1700/month in CT. Thanks!
It depends on the area but a lot of people use 600+ with exceptions if a tenant can show they were a victim of fraud or identity theft.
Hi Justin! After screening a tenant, typically the report will give you a recommendation on whether or not to approve the applicant. As Aaron said 600+ is generally what landlords use as a minimum score. I think it's important to take a look at the reasons why the persons score is what it is, as this can give you some insight as to what the applicant would be like as a tenant. Also take a look at the area you are renting in and lower or raise the score requirement based on the neighborhood. Finally, make sure you look at the applicants eviction and criminal history.
If you need any recommendations on screening software, please feel free to reach out to me directly!
We prefer income of 3x rent but will accept income of 2.5x rent with an extra security deposit.
We don't set a minimum credit score requirement in our rental criteria. We do however look carefully at the credit history. If there's significant weakness in the credit history, we may still offer to rent with an extra security deposit to cover our risk.
Too much rigidity in rental criteria hasn't worked in our favor. We've had some terrific long-term tenants who were turned down by other landlords for mistakes they made in their past. We try to focus on what people have done to recover from their past mistakes and focus on the future.
I would look into why their credit score is low.. One of my current tenants had a credit score around 550, which was due to a short sale. After doing my due dilgence ...ie calling previous landlord, checking W2s, etc..i made the decision to rent to them after everything else checked out..they have been my tenants for the last three years and i have had no issues with payments.
Nope, a credit score is irrelevant. Take for example the cancer survivor who has extremely high and outstanding medical bills but always pays everything else on time. They could very likely have a 500 score but prior to cancer they may have had an 800 score. We don't care about scores but we do review their credit history for signs.
Unpaid medical bills no longer effect FICO
Great feedback, thanks! My plan was to have them pay for the background check, if selected, that fee would come off their security deposit.
It depends on the area ..Buy a property in a C-class area and see how many potential tenants apply with a 600 score . You’d never rent a room and you’d Likely go bankrupt if you followed that credit score criteria