Advice Needed: Rental Applicant with Credit Issues
Ok, so I've been debating this all day and I need some help from the community.
I have a married couple who want to rent one of my units and they seem very nice, but they have a checkered past with Credit.
Here is the scenario:
- Apartment for Rent $1500 / Mo
- 3 Bed / 1 BA
- No kids, no pets, non-smokers
- Class B Property
- On market for 2 weeks, multiple showings with only 1 applicant (husband/wife)
- Wife has superb credit, 800 FICO, no outstanding debt/loans, Income $70K
- Husband has good Income $90K, but credit is an issue.
> Filed for Chapter 13 in 2010
> Past Due Accounts sent to Collections in 2012 (ATT $1663, Comcast $574, Utilities $504)
> 2 Judgments in 2012 ruling against him -- 2 credit cards for a total of $13K
> $2K Mortgage for Primary residence has 3 years of history with no late payments -- Home is currently in escrow.
> Tax Lien $45K -- I presume this will be settled upon close of escrow of his P-Residence, but will verify
> No Car Loans
> He has a couple credit cards that have zero balance, no issues since 2012
According to them, they fell victim to the housing market crash and had 2 investment properties go upside down and could not find renters. That seems plausible and I would understand why they would become delinquent on the mortgages of their investment properties, but what gives me reason for concern are the accounts sent to collections.
Perhaps I am over-analyzing this ... There hasn't been any bad credit issues in the past 3 years and their income covers rent by a factor of 13.3. I'm inclined to approve them based on the wife's financial profile alone, but require a deposit of 1.5 months rent based on the risk profile of the husband.
What are the thoughts from the members of the community?