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Some of you landlords sound pretty insane with your credit score requirements. Especially the one requiring an 800. You have to be nuts on that one or flat out lying. You realize that less then 1% of people over 18 have a score above 800 right? Virtually no one under 40 ever will be Over that as requirements needed to get a score that high have a lot to due with age of credit accounts. One would think that actually looking at the report would have FAR greater value then the score itself. In this area it's much cheaper to buy then rent so virtually everyone that can buy does. I'm probably one of the few that doesn't, mainly because the market scares me to death, I lost about 50k on my first house 20 years or so ago and it still sticks in my craw. I'm around 40, have good to great credit, enough money to buy the place I'm living in with cash and I don't have an 800 score. Mainly because I don't use enough credit to have an absolute top notch score.
I doubt anyone around here has any score requirements at all although they all run credit reports. I'd assume that they do to look for a previous landlord suing you or something along those lines. If they ruled out everyone that could buy a house there'd be a ton of empty rental properties. That might be different in other areas but literally we looked at a condo to rent for 1385.00 a month that I could have bought for a total payment of 820.00 a month including taxes and insurance and everything.
I don't get why anyone would use a credit score to qualify anyone for anything anyways. The info on the report is far more valuable then the score. It's a game. If you play it by the credit agencies rules then you'll have a good score. If you don't you won't. Like I said I could buy both sides of the double I now rent for cash if it was on the market and I wanted to. One of my sisters has a higher credit score then I do but I don't think she could even afford to pay the rent on one side of it. However she plays the "credit score game" and I don't. Does that make her more qualified to live here then me? Hardly. So go ahead and base your rentals on credit scores but dont look at me when it all goes sideways on you with someone that balances it perfectly but lives check to check, then has a life event come up.
From FICO's web site 2015 "As we’ve observed for several years now, more consumers are scoring 800 or above—19.9%"
Oh the other thing I forgot to mention RE the 800 credit score.... Due to the weight the credit agencies put onto home ownership there is zero chance someone will have a score of that or higher without a house payment. Good luck renting to no one!
It isn't impossible. When my husband and I bought our house, I had good credit and his was terrible, so we bought the house in my name only and put the loan in my name only. A couple years ago, we wanted to refi and put him on everything. His credit score was over 820, even though he had never had a mortgage. His was actually a couple points higher than mine.
But I agree, unless you only have 1 rental and it is super high end, that you are willing to leave vacant for months at a time rather than rent to an average Joe, 800 is way too high of a requirement for renting.
OP, if youre going to be a landlord, you need to do things YOUR way, not someone elses. You need to memorize the laws and proceedings for your state (they are on here and google).
You say no criminal history, is that misdemeanors and felonies? Is that their whole lives? recent?
For proof of income, pay stubs will show it.
You can be flexible on credit if YOU want.
Student loans can be paid off ( and should be ). IMo, it is a bill like any other but student loans are a lot more to pay back than an old electric bill. Id ok loan and pass on electric ( because it would potentially mean they couldnt get electric on in their names!(
If you have 2 applicants and 1 makes it and the other doesnt- you either deny both or only put one on there. Its up to YOU.
Evictions are usually public record, no need to call former landlord unless more info is needed. Here, you can search on local court website and it will show when, where, how much.
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I was a renter, never a LL. This is just my opinion. Again, YOU need to do what YOU feel is right.
^^sure, every landlord should ultimately do what s/he feels is right, but its important to remember that certain industry standards have developed over time and exist for a reason. Ignore them/modify them at your own risk.
^^sure, every landlord should ultimately do what s/he feels is right, but its important to remember that certain industry standards have developed over time and exist for a reason. Ignore them/modify them at your own risk.
yes there are general guidelines LL have across the board but theres not rules saying they ALL have to follow them.
Mine was 700 score but I have since lowered it to 680.
No prior evictions or judgements
No recent criminal history (felony) I dont count DUI or traffic violations
Pets (on new remodels I prefer no pets, but if I do take pets it's 700-1000 dollar additional deposit, and three times a year inspections and no breeds that are considered attack/aggressive breed
No smoking on premises
Deposit is $500 more than monthly rent
I have rented to two people in different rentals that were transplants. Both could show long term prior employment.
Income 3x rent. You verify by pay stub or calling the HR of their company.
Ditto ^^^
My rentals are in a "c" neighborhood. I require a solid 600 credit score
No evictions or EVICTION FILINGS -- in CA eviction records are sealed for 60 days, so the info would not show up on a background check for a prospective LL -- in the meantime, the deadbeat has found a new LL to sucker in
If someone has a credit score of 760 or above, they probably won't be renting in the first place. Crazy...
You're making the assumption that people who rent have low credit scores. There are many reasons a person with a score higher than 760 rents: just moved to the area and wants to scope out the area before they buy, they don't want the hassle of home ownership, they don't want to be pinned down in case they get relocated or must move out of the area or they don't have enough savings to buy.
We have rentals in my area that are over $4k a month. I'm assuming the tenants probably have good credit scores.
I don't know if it's even legal but if I was a landlord I would want to be able to visit the prospective tenant in their current abode. You would be able to get an idea of whether they are slobs or if they smoke indoors when you prefer non-smokers or does their current place smell like dog or cat urine?
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