Rental Property Investor · West Des Moines, IA · Member since 2018 · 447 posts · 64 votes
A prospective tenant got in touch and their household income is all over the place with two adults working their income is 1.9x rent add to it social security income, income from being handicapped,a minor earning some income and social security income makes it around 2.8x rent and they have 30k in debt, credit score is excellent though. I felt moved with their personal situation and thought of renting the apartment another part of me is a bit reluctant accounting by weaving a worst case scenario (ex: what if if one of the primary earners lose their job there will be lot of imbalance) with eviction moratorium in place its probably not a good idea to rent it to them. I will appreciate your inputs.
I would not consider them too many moving parts. If you are going to be 'moved' by peoples stories and situations you might think about a PM. All the best!
To be honest, I don't know what you are running. For all I know you may in fact be running a charity. Even if you are running a business that doesn't mean you you can't feel for people and the situations they are in. You didn't say what your normal income to rent ratio but most seem to deal with 3x so they are a little under that. That debt could be a scary number but would like to know more about what kind of debt. Credit score being high is good as that means they are managing their situation. And lets face it, a lot of people over the past year haven't so hats off to them.
In this business, everything is a risk. Hire a contractor for the first time, risk. Place a tenant, solid on paper or not, risk. Buy a house, solid on paper or not, risk. The key is to manage that risk, but we all assume risks.
The most important part of your post to me is "another part of me is a bit reluctant". That is your gut talking, and no matter what you are running it is always best to listen to your gut. There is something that isn't sitting well with you, so as @Account Closed said I would keep looking and showing. The market is pretty hot right now everywhere should not be an issue to find someone you are not reluctant about.
Not sure I have ever been happy with someone I was reluctant about, I think in all cases I should have listened.