Tenant Screening Exceptions

[Kyle Meyers]

Do you have certain exceptions you will make to your tenant screening if the tenant agrees to a higher deposit or a higher rent? For example if you require a 600 credit score and someone has a 580, would you deny them or tell them you will rent to them as long as they agree to a higher security deposit because of your increased risk?

[Steve Babiak]

OK, we all have been through something in our past where we were accepted or rejected based on some criteria. Think about what it takes to get accepted into Harvard, vs what it takes to get accepted into a community college. You are subjected to some tests, and given a score. And this starts with a Grade 1 education (or even earlier), where you had to get certain scores in order to pass. I'll use "A" for Harvard, and "C" for community college - and you have tenants that run through the range of grades (including "F"). Below is a link similar to a method I was taught for scoring tenants; it's appropriate to understand, and the context I just presented should help. Just think: For a tenant, do you want the "A", the "B", the "C", or worse?

http://www.biggerpockets.com/renewsblog/2008/02/09/managing-tenants-part-three-written-criteria-for-tenant-selection/