Am I allowed to list a minimum credit score when posting a rental listing ?

Question

Newbie here . Listing first property today. Are there any restrictions on listing a minimum credit score on a rental listing ? I’m in Los Angeles county

Richard F. · Answer

Aloha,

To a certain extent, I agree with @Randall Alan, however for me, it is not the score itself that I use as criteria. I am more interested in what caused that score, in conjunction with all of the other data that I review for screening. Having said that, the score is useful as one piece of the puzzle. Here is a little insight into what those scores represent in relation to the business of Rentals:

Randall Alan · Answer

@Salvador Cornejo

I would ask you if you think that is the best judge of a potential renter? Ask yourself why most people rent? A high probability is that they can’t afford to buy a home. While a credit score is worthy for a large purchase decision… they aren’t buying your house… they are simply renting it.

We use an income requirement (3x rent), plus look at criminal and eviction background history and it serves us pretty well.

Many people who rent aren’t going to have stellar credit scores. This may vary based on what market segment you are in (A versus C class homes, for instance). But a credit score, while valid for how well they handle credit, may not reflect how good a person is with paying bills, as much as it reflects how much credit they have.

If someone declared bankruptcy 6 years ago, but makes $150,000 a year today, there credit score is going to be relatively low (mid-600’s) but would make a perfectly good tenant today in all likelihood.

Just some food for thought.

All the best!

Randy

Nathan Gesner · Answer

Yes, you can put a limit on what you will allow as long as it's applied equally and fairly. Check your state law because some states are starting to regulate this.

Credit score is still the best predictor of future behavior available to most Landlords and you should absolutely consider it. I want a minimum 615 score. A score of 500 - 614 can still be accepted, but they have to pay through the nose to offset my risk. Anyone below 500 is denied or has to sign over their wallet, their first-born, and their left arm.

Amber Perkins · Answer

To answer your question, there isn't a restriction on listing a minimum credit score, as I've seen realtors even write in the agent remarks of the MLS that their clients would prefer 700+ credit. It's up to you how you choose to vet your tenants, but I would definitely take the other replies into consideration. Hope that helps.

Am I allowed to list a minimum credit score when posting a rental listing ?

Am I allowed to list a minimum credit score when posting a rental listing ?

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