Would you rent to this applicant?

Question

Hi everyone,

I keep going back and forth on what to do and I need to give this applicant an answer soon.

It is a non-married couple.  He has a credit score of 610 and a few delinquent accounts on his record.    He went through a divorce three years ago.  He makes a good income (more than 3x the rent) and should have no problem paying the rent, that is of course if he chooses to.   He is current with his current rental, but has had two bounced rental payments in the two years that he has lived there.  His girlfriend does not make enough income to cover the rent on her own and has a credit score in the low 700s with no delinquencies.  She has a DWI on her record, but it is showing that the charge was dismissed.

I currently have no other applications on the house.  The rent is a bit higher than average as the house is completely remodeled.  I am hesitant renting to them with his financial history.  What would you do?

Thank you for your input!

John Underwood · Answer

Short answer - Yes I would

Longer answer - You have no other applicants, sounds like they should meet your minimum requirements (I assume) They have decent credit and income so put them both on the lease. I typically get 1.5x the rent for a deposit to provide a buffer if things go south and people tend to pay the last months rent and turn over a clean house because they want their large deposit back. Make sure this is allowed in your area.

Mitch Messer · Answer

Hi Account Closed and welcome to BiggerPockets!

I have a couple of concerns here:

• As @John Underwood references, your Minimum Approval Requirements must be the final word on who gets accepted and who doesn't. You shouldn't have to agonize over each decision: either they meet the standard or they don't. Actually, you making a "decision" with each applicant increases the likelihood that you're going to inadvertently violate Fair Housing laws! Build your system, then use it.
• You don't say where you are, but if you're operating in a hard-to-evict state (like New York or California), you'll want to raise your standards accordingly, since the cost of removing a bad tenant will be measured in months and thousands of dollars. Less so in places like Georgia, where a non-paying tenant can be out in 30 days.

Caleb Heimsoth · Answer

@Katherine A. Really depends on the area.  If it’s a C class area I probably would

Dennis M. · Answer

I’d be on the fence based on your information  . At this point I’d go on other stuff like personality and demeanor . A human is not just  the sum of their past transactions on a piece of paper or report .

Would you rent to this applicant?

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