Questions re: potential tenants

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    Hi guys,

    Need your opinions on a couple of possible tenants.

    One has 520 credit, not great income but Dad helps out. Roommate has good credit, good income, stable job. both are mid-20s. Co-signer may be an option but would be half-way across the country.

    Others are self-employed with decent credit and documented income.

    Which is more risky?

    5 Replies

    1. Agreed with the other posts. The million dollar question is – why is the credit score 520? Is it an unpaid cable bill from college, student loans/medical bills, did he/she lose their job? or, is there a pattern of defaulting on credit lines, even with Dad’s help? If it is the latter: rejection/extra security/pre-paid rent/guarantor at the least.

    2. Generally speaking, I’d be wary of the 520 who needs help from dad. I have a bias for adults who earn their own living and maintain decent credit. They act like adults. The first, in my opinion, does not. From a financial perspective (and often in many other ways), adults are clearly better.

      But other fuzzier factors come into play. Do you like them, what do the self-employed do (they may not be working around the home; and sometimes it is nice to have someone home during the day in an otherwise unoccupied building if everyone else is at work, but that doesn’t mean they will want to answer the door for everybody else’s fed ex deliveries.) Figure out where the self-employed work from – will they be getting a lot of fed ex deliveries expecting you to accept them, have a lot of work visitors, etc. Those things may be true, but may not bother you. Figure out what bothers you about both sets of potential renters, if anything.

    3. get a landlord reference from the second pair and rent to them.

      there is no point of renting to a 520 credit person who needs a roommate. If they were a couple it would be a different story.

    4. There is no reason to discriminate against the self employed. However, they will be home a lot more often.