What key financial metrics (and values) for evaluating tenants?

[Bruce P.]

Hi BP,

Was chatting with a friend, and was wondering what key financial metrics (and what minimum numerical scores/values would you accept) would you use for evaluating whether tenants would be good renters for your property? Esp. in a house-hacking situation if that applies.

Some of my friend's initial thoughts on metrics and values:

1) Credit score with a minimum of 600

2) Debt to income ratio - 35% or lower

3) Revolving credit - not really sure if this is needed as it is a factor in credit score?

4) History of employment - ideally stable - maybe 1 job they've spent at least 2 years or more?

Are there any other key metrics or other financial factors my friend and I should look at?

[Greg M.]

I would ask for the last 2 months, but 3 isn't out of line.