How do you handle it when someone doesn't have a rental history?

How do you handle it when someone doesn't have a rental history?

Rental Property Investor · Augusta, GA · Member since 2017 · 825 posts · 278 votes

I have an applicant who is moving out of the home of her kids' father (how she puts it in the application). She has no rental history given. How do you handle that? Do you balance it with some of the other income or credit criteria? Looking for ideas.

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  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y

    Look at other qualifying factors, such as does she have a stable job history and the required 3x income (or whatever you require)?  Does she have other credit accounts (i.e. car payment, credit cards, etc) and does her credit report reflect that she has paid those on time?  Some landlords will also require their applicants to have a minimum credit score.

    And even though she lived with another person, you should still do landlord reference checks (if they were renters) to see if collectively they were good tenants, paid their rent on time, don't owe any past due rent or damages, etc.  Also conduct an eviction search to make sure she was never even named in an unlawful detainer action (I don't allow any prior evictions, ever). 

    As you can see, there's lots of things you can still screen for (and you should).  Good luck.

  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    Rental History is important but it's only one piece of the puzzle. I've had tenants who owned a home and relocated, lived with family, etc. 

    The key is to see how the lack of rental history fits into their overall character. Is their credit score high? Do they have a steady job? Is there income high? Do they have any evictions, felonies, etc?

    If everything else checks out, then we would definitely take an applicant who doesn't have rental verification. 

    Also, you could always ask for more of a deposit. 

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