Would you rent to this couple?

[Choner]

Hi All,

Would you rent to this couple (Ontario)?

The scenario is as follows:



Male

Monthly income (net): $2100

Credit score 715

With same employer for several years



Female

Monthly income (net): $1600

Credit score: 515

With same employer for two years.

Reason for poor score - irresponsible with credit card in college.



They did present themselves as a nice respectful people although not sure that really means much. My question to everyone is twofold:



1) At $1400/month + utilities, do you think this couple's net income can support this rental (assuming that they do not have any significant other debt)?



2) Does this applicant warrant further investigation or should I dismiss this and move on.



Any insight would be very much appreciated.



Thanks

 

[margaretcowan]

The rent + say $100/month in utilities comes to $1500 which divided by $3700 is 40%, getting high. How much are the utilities? What kind of property?



They seem like nice, steady job people, so I'd ask more questions. What rent are they paying now? How often have they been late or NSF on rent? Phone their landlord before their present landlord and check them out with someone totally impartial.



If they're paying a similar rent now and have paid on time, have no other debt, and check out OK, sounds like they're good tenants. Otherwise, no.



Hope this helps,

Margaret



Mama Margaret & Friends Cooking Adventures In Italy

www.italycookingschools.com

www.facebook.com/MamaMargaretandFriends

 

[MosaicRentals]

Because individually their income could not support the rent/utilities I would be concerned if their relationship is new. How long have they been together? Any children? These are a few other questions I would be asking. Also, throw in a auto loan and a couple credit cards and their income is questionable even when combined.



Good luck, sometimes its hard to see past a few cons when they obscure the many pros... what is your FIRST gut reaction tell you?

 

[invst4profit]

My practice is - If in doubt say no. Since you have to ask if others would rent to this couple I would guess you are uncertain and I would therefor pass on them.

 

[LucasAtwell]

Greg is right, if you're in doubt in closing the deal then say no and move forward I believe that's the best you can do to avoid issues in the future.

 

[Snicoll]

Hello, as you identified that it is the couple renting the place and both will be on the lease. From your post, total income between the two of them is $3700 with 1400 + utilities expenses so approximaletely 38% of there income is going to housing. Typically this is higher then I usually like as it does not include utlities.



The lady's credit is lower then I like, but I am willing to over look a low credit score if they are working to fix it.



My gut is say investigate further, what do they do for a living? , Do they make extra money that is not being reported like tips. etc.



I would have a quick converstation with one of them, and identify your concern.



Hope that helps



Sean Nicoll

2N Investments

Edmonton

 

[kfort]

Are they currently living together and just moving?

 

[Choner]

Thanks to everyone for your input. I find the different insights/perspectives to be invaluable and the responses are very much appreciated. The general consensus from all the responses was that the expense was a little high based on their income, so based on that, I decided not to proceed with these tenants.



Cheers

 

[ShannonMurree]

[quote user=Choner]Thanks to everyone for your input. I find the different insights/perspectives to be invaluable and the responses are very much appreciated. The general consensus from all the responses was that the expense was a little high based on their income, so based on that, I decided not to proceed with these tenants.



Cheers





What answer did you give them for the refusal of their rental? He had a really good credit score too. Regardless, use caution when refusing applicants so you're not accused of discrimination and brought to the OHRC (Ontario Human Rights Commission)



What has been suggested to me by April Stewart of Landlord Legal, (as I am property manager) to have a policy that when you take applications - let them know that if they're approved, you will contact them by **am/pm (24 hours/48 hours). And if not, then you're not committed to having explain why.



Good luck and happy renting!

 

[invst4profit]

When rejecting applicants you should never tell them why they are not accepted. Giving reasons will only illicit discussion. You simply state that their application has not been accepted. When they press for details state your policy is not to provide details.