Would you rent to these people?

Question

They are both college students who also work.

Person A is 20 years old,  has a FICO score in low 600s, no rental history, has been at retail job for six months.

Person B: I haven't run his application yet but he seems more solid than Person A (he has 2 years of rental history, more work history). 21 y.o.

Combined, they make $100 more than my minimum income requirement for this rental.

Carlos Flores · Answer

Don't want to derail this thread, but it's important to note that a co-signer is listed on the lease and gets certain rights, like possession and other tenant rights.  You want Guarantor(s), not co-signer(s).  A Guarantor is financially responsible to perform under the lease, and not entitled to anything else unless the contract specifies it.

Steve Babiak · Answer

You are being too focused on credit score for one who has prior renting history; in such a case, mid 500 would be OK IF the prior payment to other landlords was always in full and on time (and you are able to verify that).

The real problem here is that these two have never shared a place together before.  So I always expect one roommate to not work out and leave the remaining roommates - so I exclude the income of the highest candidate and see if there is enough to qualify with what remains.  Since there are only two, with that approach you drop the biggest income and see if the other qualifies alone.  Sounds like in this situation that won't happen.

In my area this is a slower season (although I have gotten two calls in the last week and don't have any vacancies or advertising going on even!).  Is that also the case where you are, so that your alternatives are few?

My other wonder: You have college students moving in middle of their school year.  Are they breaking any lease that they signed up for elsewhere, since most landlords want college students to lease for the entire school year?  Maybe even getting booted out from someplace ...

James Harper · Answer

These guys are not paying other utilities and college funds, and I would not expect them to pay you.  Their youth is an issue, but something that can either be verified by dropping by their current residence to establish.  In their situation I would ask for double deposit and if they cannot come up with it, then you are better off to rent to another better qualified renter.   As for the FICO score, I prefer tenants that are struggling financially (at least a little bit).  If they have too good of credit, why are they renting and they certainly would not rent from you on a long term basis.   I personally prefer the renters that have home owner experience, but problems with budgeting (maybe even a short sale in their past.)

Botomline, I would look for other prospective tenants...  You gut has already told you so, that is why you posted it here.

Jon K. · Answer

College kids could easily trash carpet as bad as dog owners. In fact, college kids tend to sneak in pets. College kids have parties, more likely to smoke, messier in general. College kids tend to trash their credit and be irresponsible with money. Not all, of course, but many are.

With that said, I've had college students move mid-year for reasons I was able to verify and they were great. They had good rental history and ok income.

No rental history? I wouldn't accept that one, especially with weak credit and little work history. 500s credit score? Yikes, but not surprising for his age.

I would be sure that you get rental history if you're accepting bad credit. Maybe the 2 years of bad credit is enough. What bad credit is it-- high student loans, rent, defaults, or what? Could you require a co-signer of a parent?

If the other tenants are slim pickings and it's not that nice a property, I might do it. If it was a nice property remodeled that college kids would tear up, no. Or if your area is hard to evict for non-payment, then I wouldn't do it.

William Bannister · Answer

Personally no I would not rent to them! The chances that one of them would lose a job and not be able to support the rent is high since there focus is on school. The only way I would is with a co signer parent and a little extra skin in the game a a form of an extra months security deposit. I have been at it a while and can tell you they probably would not qualify for most quality student housing without the cosign and extra security. The scores? why so low when they are both so young sends a message of irresponsibility in paying bills and debts. 
  Is this it for applicants why not schedule a showing and get 2 to 3 parties to show up at once and get all three under application. This saves time and reduces the aspect of tenants asking for extras when they know there is competition for your unit. In todays market renters are easier and easier to find in the post sub prime melt down where more and more home owners are now again becoming renters.
  The market will be stronger over the next few years as it takes time for the big reits and developers to get new units online to fill this demand. This in addition to the tight financing requirements for building will make your potential tenant base widen. 
   Work to get more applicants before you rent this apt try to find several applicants so you can pick the best of the 3. Our property managers are trained to do a little prequalifying over the phone when people call on adds it reduces showings and labor to occupy apts.
   Prequalify is based on income and credit and time at job so fair housing laws are always followed;)

Bienes Raices · Answer

Thanks for all the advice--I decided not to rent to them.

Irene G. · Answer

I would never rent to them!  Not only will they have parties but their friends will take up parking spaces and you'll get an earful from the neigbors.  It's better to wait it out for the right tenants.

Bienes Raices · Answer

student loan 120 days late (now current), cell phone bill (paid collection), cable bill in  collection , paid charge off from a bank (credit card?)

Bienes Raices · Answer

They don't live together currently. The one who is renting wants to leave his place (shared with three other students) because one of the roommates moved his girlfriend into the apartment and let her sleep/live on the couch without the other roommates' permission (haven't called the landlord yet to do the reference check).

Bienes Raices · Answer

Steve,
That is my main concern (one of them moving out early). And one of the two has no rental history at all. The FICO score were just the icing on the cake. I have a married couple in another house with scores just as bad but they have a track record of good rental references over the years.

I have been getting calls but all duds or no shows so far. I'm wondering if I should open it up to dog owners but I'm reluctant because some of the rooms have carpeting.

Would you rent to these people?

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