Credit score for tenants?

Question

What score do you require a tenant to have to lease with you?

Bob Paxson · Answer

I have a handful of rentals in C+ and B areas.... But I have a tried and true method...many of my best tenants have lower credit scores.... What I look for is what caused the bad scores was it unpaid medical bills etc.... I always check to make sure they are paying their month bills....It has served me well.

Jason D. · Answer

@Jason Lawrence I focus more on the report than the score. I have C - C+ area rentals, so scores are generally low because many people in that demographic dont pay attention to, or care about their credit score. I look for red flags on the report and good landlord references

Ahmer Zaidi · Answer

The credit score requirement is going to be different and dependent on the class of property.  I currently have 1 property in a B+ class area I require a score of 700+.  I manage a few properties in a C class area and look for 580+, but in a lower-class area, I personally focus on monthly income.  2 out of 4 tenants in that area don't have any credit.  They are immigrants that are working hard and meet income requirements and pay cash.

Overall, it's not one size fits all and heavily dependent on the demographics of the area.

Sheldon Zimmerman · Answer

The credit score we require with our portfolio is 600. If they are below 600, but they have 3x the income and no landlord/tenant complaints then we would ask for last month's rent. But a safer credit score depending on the property would be 650 or higher. But you can set that depending on how strict you want or should be. Just be consistent.

Credit score for tenants?

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