What do you landlords require as minimum credit score?

[aigel]

I know, credit score isn't everything, but it sure says a lot about someone's ability to pay on time and take financial commitment seriously. I have seen some people that have the income but still not the discipline to spend it on the essentials first.

In the past I have used a property management company and went with their recommendation. I don't think there was a hard cutoff for them. That was also after 2006 when many struggled, today is a bit different. Most people should have recovered from foreclosures and personal bankruptcies due to getting ahead of themselves in the housing bubble.

So what is it in FICO numbers? Do you have a cut off? 670? 700? National average score is 700.

https://www.experian.com/blogs/ask-experian/infographic-what-are-the-different-scoring-ranges/

TIA,

G

[Tidybuoy]

I state 650 minimum fico score on my ads but in reality, I have rented to people that seem the most fitting for my duplex. So far, I've had great tenants. This is my first duplex so I don't have a lot of experience but for future reference, I am going to get more ridged with my renting process (when that time comes).

[WPOZZZ]

I literally just approved a tenant with a 644.

[thor66]

820

[look 171]

We do not have a cut off but we try and get ones with scores up near 675 plus.

[aigel]

Thanks guys. Looks like 650-675 is about the minimum you are looking for. The 820 may be an outlier. I may not even be able to rent to myself at that number. Being a very conservative guy in terms of spending, I am always amazed to see someone's credit report and what people finance (10 year old beater cars, a TV, their couch etc.). Total debt load is also something to look at, albeit the score takes some of that into account. Keep the answers coming and any other wisdom on selecting solid tenants!

[Tidybuoy]

I think I just lucked out. Both of my current tenants were in their previous places for 5 years or longer.

Tenant #1 was moving because they needed a 3 bedroom as two kids (boy & girl) had been sharing a bedroom. This tenant has paid her rent on the 25th (before the 1st) every payment for a year now.

Tenant #2 was moving because their rented house was sold and also, the guy's brother has lived across the street from my rental for 7 years. This family has paid on time every month.

Although I state 650 Fico score is required, that is to prevent the lowest of the renters to simply not apply. I based my decision on past renting history and my gut feeling after meeting the people. I also consider their employment history and in my case, my tenants have good jobs with longevity. In both cases, I just deposit the rent, pay my mortgage and store the excess in my bank account.

[fred cook]

I owned and operated a 4 suite commercial building for a little over 35 years and never once asked about or looked at a FICO score! What I did was to keep an eye on other properties in the area and make certain to keep my rents 15-20% lower and made a point to keep the building in tip top shape. I had one tenant that stayed for about 20 years and others in the 10 to 15 year range. In that time I only had trouble with one guy and I got rid of him by offering to tear up his lease if he would go away!

[aigel]

Thanks guys! Yes, pricing the property at the lower end of the range will help retain good tenants and initially also get a larger pool of applicants to choose from.

I agree, stating "good credit" or 650+ required will reduce applications. I sincerely want to save people the hassle and cost if it is most likely a no-go.

[Skillet83]

Use mysmartmove.com. A trans union site. You get criminal, financial and eviction history. Also gives you a accept & decline rating based on info. Has never let me down.

[Arizona_928]

That's why people live in vans down by the river.

I think the real answer is income with credit score

[aigel]

Thanks skillet And AZ928 ... I plan on using one of the online tools. I.e. Cozy or Zillow Landlord which includes background and credit checks that the applicant initiates and pays for.

With the housing prices taking off there has to be some people with decent jobs and income that are priced out and renting another few years. Those are my target.

G

[Arizona_928]

2-3x reliable income of the rent is what I would look for. More stability with income would have higher priority. 100% disabled vet vs two people working min wage jobs would come to mind.


I have an uncle that owns a comlpex across the street from eastern wastington uni. Very good judge of character, but he just fixes them up IF they trash the units. Kids will be kids, and tries to not to rent to non students. Most of the kids pay the year up front, and move out over the summer. But I feel your situation is different.

[3rd_gear_Ted]

I love renting to people on pure gov't incomes.
Auto-pay on same day as their deposit is my only requirement.

[fastfredracing]

Used to be , we only required a pulse and a security deposit. Boy have we learned some lessons. Since we are on the lower end of the rental spectrum, c class properties, we are usually dealing with people with less than stellar credit .
We go on a case by case basis , past rental history, and verify income . We have had good tenants right out of bankruptcy , and crappy tenants with good credit scores .
We are currently in a program with a tenant, who is trying to improve her credit score , and the institution she is working with contacts us twice a year to verify she is keeping up .
She is hoping to purchase a home after 3 years renting with us. 1.5 years in , so far so good .

[Esel Mann]

Credit and background checks plus employer verification are of course important when screening prospective tenants. What we ultimately used however to screen a tenant was first, last, and deposit all up front at move-in (not say over x first months). It worked with excellent success. No missed/back payments. No deadbeats.

[WPOZZZ]

So far so good. Miss 644 moved in over the weekend and repainted the unit. I kind of left it as is because it was used as a massage studio, and wasn't sure who/what was moving in. Miss 644 is using the place as her residence.