Woodland Hills, CA 路 Member since 2016 路 1 post 路 4 votes
First time landlord working with a property manager to rent a large, very clean, single family home in a Los Angeles suburb.
What are acceptable tenant credit scores and requirements for cash reserves? I see that my initial expectation of credit at 750 was hugely unrealistic. Any insight appreciated.
@Diane Savoian - I agree with what both @Jon K. and @John Morgan said. I have great tenants that have low credit scores. Remember, you are NOT your target tenant. When someone is renting there is a reason - they don't have good credit, they can't save up a downpayment, they have past medical bills, etc. Those can be great tenants and stay long term. Imagine if you rented to yourself, you'd probably have high standards and buy within a year. Not the target.
More important than credit is a verified landlord reference and criminal background check. My cut off for credit is 633. Some former landlords want to get rid of problem tenants so handle that carefully. Also I have had approved tenants show up with no cash after going through the entire process claiming they want to see what its like etc.
@Diane Savoian I agree with what has been posted. I manage a few rentals in NELA and I have a min of 675 credit score and documentable income of 2.5 the monthly rent. Clean background check without any derogatories in the past 5 years. There are exceptions but I do not accept low credit scores. I fall on the stricter side as I live onsite and I want to make sure my tenants have passed all my checks. But basically, can anyone who comes through my door pay rent on time, take care of the unit, is a responsible person, and not cause me heaps of headaches. Go with your gut, and make sure you are not holding them to the same standards for buying as yes, they are renting and do not need to go through the wringer of prequal for a loan.
Good advice and seems to be pretty consistent aside from minor fluctuations in score. The remaining background check and income verification become that much more important with a lower credit score however.