Would you rent to a tenant with this credit score...?
- Thread starter Nir
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QUOTE (investmart @ Nov 21 2009, 04:02 PM) Hey,
Would you definitely NOT rent to a tenant whose credit score is 425 or would it still depend on other things?
only 1 collection in the past year. was explained it is due to divorce (for some reason I believe her/him).
THANKS.
Just my two cents on the question…For me the credit score is not the main deciding factor. It is just part of my system when filtering who I am bringing in as a PARTNER. Given that not all poor credit worthy individual are bad people. Depending on my gut feeling about the person from the moment the conversation started from the phone inquiry, to the showing, to the application, to the interview, and through the reference check process…given they get pass that stage. I simply spend the time to get to know them and find out how truthful they are. There are many ways to attain this…For me the biggest part is honesty and trust from both parties.
Would you definitely NOT rent to a tenant whose credit score is 425 or would it still depend on other things?
only 1 collection in the past year. was explained it is due to divorce (for some reason I believe her/him).
THANKS.
Just my two cents on the question…For me the credit score is not the main deciding factor. It is just part of my system when filtering who I am bringing in as a PARTNER. Given that not all poor credit worthy individual are bad people. Depending on my gut feeling about the person from the moment the conversation started from the phone inquiry, to the showing, to the application, to the interview, and through the reference check process…given they get pass that stage. I simply spend the time to get to know them and find out how truthful they are. There are many ways to attain this…For me the biggest part is honesty and trust from both parties.
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I agree with Jason. Speaking from personal experience: when I was a young punk I was pretty irresponsible with my credit cards - but never once missed rent (or would even think of doing so). Thankfully, my landlords never barred me based on credit score.
Reference checks (on previous residence and job), along with gut instinct have worked so far in our - admittedly brief - experience being landlords.
Moe
Reference checks (on previous residence and job), along with gut instinct have worked so far in our - admittedly brief - experience being landlords.
Moe
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Definitely don`t base your decision strictly on credit score, but do make sure you check their credit. If a potential tenant has a very bad tenant score I generally make sure and do extra research to make sure they will be a equity building tenant, such as past landlords and personal references. Most of my tenants don`t have good credit scores and most of my tenants are very good tenants.
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I wouldn`t rent to my mother with a credit score that low.
425, what possible positive financial attributes could anyone have with a score that low. To get as low as 425 they would have to work at it for a long time and generally speaking low credit scores and "work" rarely go hand in hand.
Your applicant has serious long term responsibility issues that will come back to bite you. Don`t waste another minute of your time trying to make this loser work for you. Reject.
I have a cut off point that under no circumstances will I go below unless it was the direct result of a divorce within the previous 12 months. Even in those cases I have never seen anyone in the 400s.
I have never seen a score as low as the 400s but personally even the 500s are below my standards.
The reason I have set these standards is because every tenant I have accepted in the past that has scored below my standard, for what ever reason, has always proven to be a mistake. Yes some that did meet my criteria did not work out but the odds favour my chosen standards.
Credit scores are not the be all and end all for evaluating tenant applications but frankly they tell an awful lot in this business.
If my tenants do not pay there bills on time how can I expect them to put me ahead of all others and pay me on time.
425!!!! I would have problems rejecting them without laughing out loud.
Keep in mind I do not rent to anyone on social assistance of any kind so I am not familiar with that type of applicant.
425, what possible positive financial attributes could anyone have with a score that low. To get as low as 425 they would have to work at it for a long time and generally speaking low credit scores and "work" rarely go hand in hand.
Your applicant has serious long term responsibility issues that will come back to bite you. Don`t waste another minute of your time trying to make this loser work for you. Reject.
I have a cut off point that under no circumstances will I go below unless it was the direct result of a divorce within the previous 12 months. Even in those cases I have never seen anyone in the 400s.
I have never seen a score as low as the 400s but personally even the 500s are below my standards.
The reason I have set these standards is because every tenant I have accepted in the past that has scored below my standard, for what ever reason, has always proven to be a mistake. Yes some that did meet my criteria did not work out but the odds favour my chosen standards.
Credit scores are not the be all and end all for evaluating tenant applications but frankly they tell an awful lot in this business.
If my tenants do not pay there bills on time how can I expect them to put me ahead of all others and pay me on time.
425!!!! I would have problems rejecting them without laughing out loud.
Keep in mind I do not rent to anyone on social assistance of any kind so I am not familiar with that type of applicant.
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You should definitely rent to someone with a beacon or fico of 425. Think of the good you`re doing. Your friends get to laugh at you, your spouse gets to hold you in utter contempt, everyone who ever `warned` you about real estate will feel vindicated. You`ll get to experience the eviction process up close and personal, you`ll lose weight AND sleep (fantastic if you want to stay up late and watch those real estate infomercials), sharpen your diplomatic skills with neighbours, finally realize that your mother-in-law was right about you all along, collect a whole raft of new excuses for non-payment of rent, and test the effectiveness of your emergency fund.
And when all is said and done, you get to replace that new carpet with new carpet, deliver lectures at Home Depot on effective drywall repair, and paint over that old neutral paint with new neutral paint. Besides, what`s a basement for, if not to store dog crap!
People with 425s are always welcome at banks. They`re seated in chairs placed over the trap doors... right next to the people who rent to them.
Cheers,
Steve Manning
And when all is said and done, you get to replace that new carpet with new carpet, deliver lectures at Home Depot on effective drywall repair, and paint over that old neutral paint with new neutral paint. Besides, what`s a basement for, if not to store dog crap!
People with 425s are always welcome at banks. They`re seated in chairs placed over the trap doors... right next to the people who rent to them.
Cheers,
Steve Manning
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It would also likely provide some good first hand experience dealing with the LTB and there low life hall trolls they loosely refer to as legal aid.
All kidding aside though the purpose of doing credit and back ground searches on applicants is to find reasons not to rent to people. We want to eliminate risk not figure out ways to live with it.
All kidding aside though the purpose of doing credit and back ground searches on applicants is to find reasons not to rent to people. We want to eliminate risk not figure out ways to live with it.