Re: Poor credit ? - Landlord Forum thread 346800

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

"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?

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Re: Poor credit ? by J (FL) on July 27, 2016 @08:51	[ Reply ]

Does HUD view other applicants' credit reports without their permission to prove that?

Re: Poor credit ? by Anonymous on July 27, 2016 @08:57	[ Reply ]

No, but the point is to not take the risk of discrimination suit. If you deny one tenant for having a poor credit score, but accept another for having a poor credit score, you will be asked why.

Re: Poor credit ? by J (FL) on July 27, 2016 @09:08	[ Reply ]

I understand, just wondering. It's something I've thought about before this post. First of all the rejected applicant would somehow have to know that you accepted someone else with the same or lower score as them. So they would either have to know about the credit score of the other applicant, or just make up a complaint to HUD that they were discriminated based on credit, and I don't know know how many people would bother doing something this unless they had a screw loose, or you (LL) treated them very rudely at a showing. Secondly, HUD would have to actually view other applicant's credit reports, possibly without their permission, to prove this case. Perhaps HUD has the power to do this. But it may be against the FCRA rules.

Re: Poor credit ?