Recently bought Double
2 Replies
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Here's some helpful info:
A bad tenant can lead to thousands of dollars of losses via unpaid rents, legal fees and property damages. We’re one of the few property managers that require W-2’s and a bank statement and we go way beyond the traditional, “income must = 3x rent” qualifier.
Below is more information about what our Applications Department does to screen applicants and find the best tenants possible for your property.
- Required Info
We require the following from each applicant over the age of 18, that is not a dependent of another applicant (as evidenced on a tax return):
- Copy of acceptable state picture ID
- Recent YTD paystub
- Recent W-2
- Recent Bank Statement, all pages, no info blacked out
- Recent tax return if self-employed
Applicants are often slow about turning this information in, asking us why we need it and then taking several days to submit. Then they complain that our process takes too long!
- Credit History
Many companies use credit summaries, but we find these rarely tell the whole credit story. So, we obtain a full credit report and review collections, chargeoffs, age of credit accounts, active accounts, etc. to build an overall credit evaluation.
FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% - Public Records
We also obtain data from national databases about evictions, convictions, and sex-offender histories. These all require applicants to submit an acceptable Letter of Explanation addressing each specific issue and occurrence.
- Rental History
Because a current landlord may say anything to get rid of a bad tenant out of desperation, we also require information for the previous landlord of all applicants…
- Analyze Income
Many landlords require a month of paystubs from applicants and just use these to calculate a monthly qualifying income…
- Employment Stability
Unless an applicant has exceptional credit, we strive to determine their stability of employment…
- Assets
We are one of the few management companies that requires a bank statement as part of our application process…
- Letter Of Explanation
Any time there are credit issues or we discover an inconsistency, we require a written letter of explanation (LOX)…
- Underwriting
Traditionally, landlords have only looked at the income of applicants…
- Approval
Once an applicant is approved, we require a nonrefundable Holding Fee to make sure they are serious…
Logical Property Management4.9458 Reviews - Required Info
- Rental Property Investor · Indianapolis, IN · Member since 2025 · 15 posts · 14 votes1y
Congrats on your first investment property—that’s a big step! Will you be living on one side and house hacking the double? If so, that can be a great way to offset your mortgage while building equity, but one thing to consider is keeping a bit of professional distance—sometimes it helps not to let renters know you’re the actual owner, especially if you're managing the property yourself. Tenants may treat things differently if they know you’re the landlord, so presenting yourself as the property manager can help maintain boundaries and smoother communication. When screening potential tenants, be sure to collect a full application, run credit and background checks, verify income, and call prior landlord references. Also, take the extra step to look up their criminal history through a public records service—background checks from platforms like Zillow often only show major felony convictions, so you may miss key information. It’s also a good idea to search for any small claims cases, as some past evictions may not be labeled clearly as “evictions” but may show up this way.
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