To rent or not to rent???

9 Replies

A little unsure about the situation that I’m in. A 3 bedroom rental that I have has been listed with not that many showings (historically I never had problems but rental saturation and getting closer to year end makes renting more difficult). So an applicant applied with his girlfriend (he is a teacher relocating back to the city for work) and his GF will be looking for employment when she moves. His Income alone just qualifies for the 3x monthly rent rule but his credit is poor...mainly not paying education loans and his monthly expenses (credit cards and loans are low). He since modified his loans to be based on his income so now the payments are more manageable. His score is under 450 (ouch! it goes that low??) and he does have a co-signer whose score is mid 600s. Based on this would you guys rent to them? Maybe on a month-to-month instead of an annual lease?

Wow, that is a crazy bad credit score.  That shows that he has not shown the ability to pay his expenses. 

How easy is it to get people out in your state when they dont pay?

Can he provide an extra months worth of deposit?

The answer is no from my perspective because as a property manager, I need to be able to justify who i put in a home and credit score is a huge factor in our decision. 

I agree with @Christine Kankowski , my answer would be no. If he's not making payments on other expenses it is likely that he cannot afford them, not that he forgot a payment here or there. If his income justifies his expenses, he just is not capable of managing his money, which is a big red flag for me. 

If you still decided to rent to him, he could pay the maximum deposit allowable in your area. However, the moment he is late, be sure to post a 3-day notice, or the equivalent in your area, and start the eviction process. 

Some people never evict because they screen well and have strong policies. Others just get lucky and somehow manage to rent to tenants that generally behave. Don't be the latter.

Credit scores mean something. He obviously doesn't care about paying his obligations. If he got into trouble with you, he obviously wouldn't care if you sent him to collections because his credit is already shot.

You don't mention the girlfriend's score but I suspect it's also low. If she's willing to latch on to a guy that can't take care of basic obligations, she's also not a good prospect.

They are dating, not married. This greatly increases the likelihood that they will break up some time during the tenancy. If she's the responsible one and decides to leave, you're in a mess.

I also wouldn't accept the co-signer with a score in the mid 600s. I only accept a co-signer if they have strong credit because I need to know their score is important to them and that they are capable of paying this guy's rent if he flakes.

Too many red flags for me and I would deny them, even if they had a decent Landlord reference.

Are you serious or do you simply have no screening standards. I have never heard of any landlord, outside of mom and pop, that has been soooooooo desperate to even consider renting under this scenario.

Many may suggest options that could protect you from a potential disastrous tenant situation with this applicant but none will work when his life requires expenses more important than paying rent.

Just for information sake paying rent is probably not even on his list of priorities. The guy is a train wreck financially waiting for the next emergency expense. 

If all you want is a warm body willing to babysit your house for free this is your guy. 

@Nathan G. Thanks for your input.  You make a good point about the breakup situation...although she is moving cross-country but anything can happen.

@Thomas S. I do have standards unless it's 2 AM at the bar then they go down ))  

thanks for all of your input...I will deny.