Tenant qualification

4 Replies

does anyone have any special way to qualify a cash tenant in a low income area? I have my techniques but would curious to know everyone else's. Please share

There are not many circumstances that I would allow a cash tenant. I am all about the proof of income, and proof of employment. It can be hard sometimes to wait for the right tenants, but it is worth it in the end. 

America's Private Lender
Receive Fix and Flip Funding Approval In As Little As 24 Hours!
Sharestates helps developers and brokers secure funding quickly with the most competitive terms.
Get Funded

I use a point system looking at many attributes.  Specific to a cash applicant, they would likely lose out on earning points for having a bank account.  I still look at the income to rent ratio, how long they have had their job and if it is verifiable, and run credit to look at address history and for collections.  If they have not held their job long or if they don't have rental history, I'd require a co-signer or higher deposit.  Very few of my tenants have bank accounts, so we see cash or cashiers checks.  It's a red flag that they don't have credit to protect, so harder to recover damages at move out, but often work out fine.