Tenant financial and credit requirements

Rehabbing, Fix and Flip, Rental Properties
1

Another couple questions from the beginning landlord:

What credit score do you require your tenants to have?

What % of rent should they bring home every month?

Thanks guys,

Mike

2

Look more into if they’re current on payments and can afford the rent your asking. Someone’s score could be low because of past problems that they’ve cleaned up or are currently working out. I require they make 2.5 times the amount of monthly rent.

3

Mike,

I require that the tenant have a gross rent of 3 times the rent (either in a paycheck or a combination of all their government handouts).

I also agree that the credit score isn’t very important. Almost all low and lower-middle income tenants have terrible credit. I eliminate the vast majority of applicants for previous evictions and previous criminal activity.

Good Luck,

Mike

4

We’re a diverse group. So it depends on which economic level of tenant you are targeting.

I require tenants to pay with a corporate check or credit card (Visa, MC, Discover). Also accept cash, travellers checks and personal checks. I just question them and if I like them I rent to them.

FurnishedOwner

5

Thanks for the replies. I’ll definately take a look at the whole credit report, not just the score itself. My rental is in a middle/upper middle class area.