Poor credit ? - Landlord Forum thread 346797

Poor credit ? by Anonymous on July 27, 2016 @06:52

I have many potential tenants that have poor or not great credit scores what to do if everything else checks out like job,references,and ect?
Can I charge a premium or double security? Ideas?

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Re: Poor credit ? by J (FL) on July 27, 2016 @08:29	[ Reply ]

I've done this once with a tenant. Check your state law, there may be a max amount of deposit your allowed to charge. And you are supposed to mail the FCRA "adverse action" letter if you charge them higher due to their credit. You could also put someone on a month to month lease if they are shaky.

Re: Poor credit ? by Anonymous on July 27, 2016 @08:46	[ Reply ]

"Can I charge a premium or double security? Ideas?" Your rental criteria should be clearly spelled out in your application and applied equally to all applicants or you risk issues with discrimination. Some states, like California, also put legal limits on how much security can be collected, and that any funds collected beyond the first month's rent also count as additional security. What is the minimum credit score listed on your rental criteria? If you find that too many applicants don't meet your criteria you need to take a look at that. Is your minimum higher than the average credit score for your area? Is something about the rental turning off more qualified applicants?

Re: Poor credit ?

Re: Poor credit ? by Magic Mike on July 27, 2016 @11:06	[ Reply ]

How poor is poor? What is the score? Did you talk to them about their credit? What reasons do they give for not paying back past debts?

Re: Poor credit ?

Re: Poor credit ? by Anonymous on July 27, 2016 @13:20	[ Reply ]

I HAVE HAD NOTHING BUT BAD LUCK WITH PEOPLE WITH POOR CREDIT. If someone responds to my questions and says that their credit is not that great I respond with this letter: Dear , Thank you for your interest in the apartment. Unfortunately your credit rating does not meet the minimum criteria established for this property which is a score in the "excellent" range or higher. We wish you the best of luck in finding a new home. Sincerely, I've been using this message board for a long time and have followed the advice of not taking anyone with a score lower than 650. This has worked well for me as far as getting people to pay their rent. No tenant is better than a bad tenant!!! And cheaper in the long run too!

Re: Poor credit ? by No Nonsense Landlord (Minnesota) on July 29, 2016 @20:07	[ Reply ]

I would move onto the next tenant. My minimum is a score of 625, for all occupants.

Re: Poor credit ? by nameless (GA) on August 25, 2016 @11:37	[ Reply ]

I have a tenant whose credit was poor but everything else was fine. I just required co-signer. I have had this same tenant for years with only a couple of late pays.