Tenant Credit Score Requirement

[Ryan Gettelfinger]

Hey All,

What's your thoughts on a minimum credit score for tenants?

The 3 bed 1 bath SFH we have available for rent has a credit score minimum of 600. So far from speaking 20+ applicants the credit score issue seems to be constant issue. Most make enough income but have a credit score around 550.

I'm interested to hear your opinion. Are my standards to high to be asking for 600 credit score? 

Thanks, Ryan 

[Gretchen P.]

I look at why the score is low. I have had applicants with no debt, and no history of debt with low scores, and had people making 3000 a month owing 35K in consumer with a 750. I will take the low score all day long in that situation. I also look at what caused the low score and what kind of debt, someone with a 25K car loan and 10K on a Nordstrom card is different than someone with 35K in student loans in my opinion. It shows how they handle their financial decisions. A few random late payments in the past are also different than if someone missed payments over the last few months. That's more forgetfulness than inability to pay, if they want to pay a late fee every month, that's fine with me, I can cover the mortgage. If applicants had an 780 credit score and a great income and tons of savings most of them would be looking to buy, not rent. I look at the whole picture, and if the score is in the 580-640 range I ask for an additional month deposit.