Minimum Qualifications what are your standards

Minimum Qualifications what are your standards

Property Manager · Twin Falls, ID · Member since 2017 · 42 posts · 11 votes

I just bought an out of town duplex (1 1/2 hours away). I’m in the process of advertising and listed in a local Facebook buy sell and trade. I was getting a lot of inquiries and I would say about 90% who don’t even qualify— bad credit, asking if I will work with them on the deposit... etc. So I decided to try just listing minimum qualifications with the listing as to weed out those who don’t qualify in the first place. Next thing I know I’m being shamed by multiple commentators for having to “steep” criteria and I’m contributing to homelessness in the area and it’s discriminatory criteria . 🙄

 I feel they are pretty standard for the market:

Applicant must have current photo identification and a valid social security number.

Applicant's monthly household income must exceed three times the rent. 

Applicants must receive positive references from all previous landlords for the previous 5 years.

Applicant may not have any evictions or unpaid judgments from previous landlords.

Applicant must exhibit a responsible financial life. Credit score must be a minimum of 600.

A background check will be conducted on all applicants over 18. Applicant’s background must exhibit a pattern of responsibility.

Applicant must be a non-smoker

Is this being unreasonable? I am new to the market but from most options especially those managed by a PM company are comparable to what my criteria is.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y

Those are reasonable. Just remember, you have to know "why" you have these policies so you can know "when" to deviate from them.

For example, requiring 3x the rent is pretty safe. But I've rented to people that only made 2x the rent because they were elderly, had zero debt and good financial responsibilities, excellent Landlord references, etc.

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  • Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    7y

    @Shannon M.. You might consider engaging a local RE Agent to assist you with getting Leased up for the first time. You'll get the benefit of their experience and you'll probably learn some ideas to incorporate into your plan. 

    Also puts someone else to deal with the facebook haters & shamers!

    If it's college students you're getting, Credit, etc will be Mom & Dad's.

  • Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    @Shannon McEwan seems the oppressed victim disorder has now migrated to Twin Falls.
  • Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    @Matthew Olszak those are some very well thought out insights
  • Member since 2018 · 433 posts · 208 votes
    7y

    I agree that you need to know why so you can deviate. I couldn't show you monthly income and I have an awful credit score. My score is mainly low because I run high balances on my revolving credit. Then pay them off completely. Repeat. I do this at certain times of the year to keep everyone paid until checks come in. (I run a semi seasonal business.) But I have over 100k of assets with about 15k in debt when the cards are run up and that debt comes down every year. 4 years ago it was 75/40

    And that is why I am entering real estate too try to bring some stability to my finances. 

  • Investor · Soldotna, AK · Member since 2015 · 103 posts · 64 votes
    7y

    Your property = your rules

  • Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
    7y
    @Shannon McEwan those requirements are similar to mine. some of the verbiage is wordy. I simply list requirements. when looking for a tenant, I do not answer phone/emails, but simply reply by texting or emailing a copy of my requirements. this eliminates most of the non qualified renters. it is much easier than taking too potential rent and trying to remember all the requirements. I do not list on FB though so no experience there.
  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    7y

    One thing none of us know on here is the type of area the apartment is in. Is it reasonable to expect to get a tenant with the minimum quals your outlined based on where the apartment is? 

    If so, I think you are headed in the right direction with your minimum quals. Personally my list is a little shorter and concise, but you have to do what works for you especially if you are driving 1.5 hours to showings. From experience though very few people actually read the details of a rental ad, they mostly just look at the pictures and the rent amount. Because of that you want to run through the basic requirements quickly when someone inquires. Don't assume they read the ad.

  • Simsbury, CT · Member since 2018 · 46 posts · 14 votes
    7y

    So true. I’m getting a lot of people who show up and ask how much it is or other questions that are in my ad. 

  • Durham, NC · Member since 2015 · 48 posts · 18 votes
    7y

    I think you get more whiners on facebook. They can comment into the void and there is no repercussion, don't let them bother you. These were my requirements when I last listed a place (almost 3 years ago):

    Rental requirements:

    Credit score of 650+

    Verified income of 3x the monthly rent

    Positive reference from previous landlords

    Clean criminal and rental history

    Maximum occupancy: 5 people

    Application fee: 40/adult applicant

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