1st property is bought and rehab is finished.!!
I have had it list for a week with 4 showings and no applications.
I’d say I’m in a C+ neighborhood on a very nice street. I dropped the advertised rate from 1100 to 1050 to help appeal new prospects.
I feel my qualification standards are to tight.
700 score and 3.5x income.
I’ve messaged many people and credit seems to be the big issue.
What would be the best way to lower my qualifications and can I possibly re advertise at 1100 again?
I was thinking 675 score and 3x income?
Should I re call all interested parties? I dont want any fair housing laws to be infringed as well.
In C/D areas you will never find 700+ credit score tenants. I dont care about credit score. It is meaningless IMO.
Just look for 3x income, no eviction record and go with your gut.
Did you check the market before you bought to determine what the rent demand, price, and criteria were there? It saves a lot of time, energy, and money to do a market analysis upfront. I recommend taking a few minutes now to pull-up rental listings in that market to compare your property, pricing, and criteria to what's currently available. You can have the best property ever - and sit vacant forever - because you over-improved/over-priced/over-screened for the market. You can have a quality tenant with a proven record of keeping financial commitments without setting up a lot of hurdles.
Congrats on your first acquisition...
C+ neighborhood and you want 700 credit score and 3.5X rent. 🤣🤣🤣
Try 625 credit (no evictions or items in collections) and 2.5X rent.
I agree with Syed - your requirements are not consistent with your prospective Tennant. You want a 700+ and 3.5 in a C/D, good luck. We have an old saying in the country - want in one hand and crap in the other and see which one fills first.
I don't even look at credit scores - they are meaningless, too many things can impact them that have no bearing on the tenant. In a C/D, give me 2X, no evictions, and no lawsuits against prior landlords and I am good to go.
@Lacy Tilley my 'C' requirements are no evictions, no bankruptcies, no violent felonies, 3x income,
Most of the scores I get are sub 600, so I dont look at score.
If they had a 700 credit and made 40k per year, they could buy the house I'm renting.
I'm in B class, with rents $1,325-1,450. And I ask for 600 credit score, 3x rent, no evictions. 700 credit score you better move that house to an A class neighborhood.
It's absolutely ok to change your posting to whatever you want. And yes, it's also ok to revisit the current applications/possible interested people. Did they originally not make the criteria, but seems ok otherwise? You haven't even had any applicants to deny, so not sure what discrimination you could have done. Poor credit isn't a protected class.
@Anthony Wick that was my concern. Thanks everybody for you opinions. And setting my expectations.
YOUR CREDIT REQUIREMENT IS TOO HIGH. MOST PEOPLE WHO RENT, DO SO BECAUSE THEY DO NOT QUALIFY FOR A MORTGAGE (CREDIT MINIMUM 620, SOME 580). I WOULD SUGGEST LOWERING CREDIT REQUIREMNET. GENERALLY INCOME IS 2.5-3X THE RENT. WO WHATS COMFORTABLE FOR YOU BUT IF YOU WANT RENTED SOON, CONSIDERE ADJUSTING QUALIFICATIONS