Posted by Bob Davis on September 02, 2006 at 04:19:01:
I have several rentals and would like to know the best source of doing background checks. I know there are several companies that offer this service for different prices, but how much do I need?? Thanks
Landlord question - Posted by Bob
Posted by Bob on August 03, 2006 at 15:02:54:
What credit score do you require for your tenants?
From what I have read I am thinking at least 680.
Thanks
Re: Landlord question - Posted by Long Beach Ed
Posted by Long Beach Ed on August 19, 2006 at 16:12:41:
I have high end oceanfront stuff and I never rent to anyone with ANY negative entries on their credit. I turn many away, but haven’t had an eviction in fifteen years. I also look for the right attitude and stay away from those smarter than me or bigger than me. But Frank is my hero here on this board an he makes so great points. I always learn from him, even after these 25 years…
Re: Landlord question - Posted by Frank Chin
Posted by Frank Chin on August 04, 2006 at 10:41:35:
Bob:
I used to rent to the guy with the highest income, or the highest credit score, or graduated the best college. NO MORE.
The big problem is the good ones lasts a year or less. See the following thread:
http://www.creonline.com/wwwboard/messages/24531.html
In the case of college grads, credit scores are high becuase they live home with mom, and now that they have to pay rent, and that new car, the salary is not that big anymore. The score will drop.
Usually, I check the credit reports for monthly payments due, such as car loans, student loans, credit card payments, add in the rent payment, compare that to the net income, and see if he has anything left for food and beer. Yes, its like doing the tenant’s monthly budget.
I find that if they monthly gross is at least four times the monthly rent, it should be OK. In other words, someone making $3,200/month can afford a $800/month apartment.
I try NOT to rent to people with recent bankruptcies, but made an exception in 2 cases. In one case, had a great tenant of six years, in the other case, he didn’t pay the last three months rent when he left. Explained to me matter of factly that he was short $3,000 in the down payment for the house he’s buying.
Was a great tenant the four years he was there before that.
Someone in the habit of walking away from bills in a bankruptcy would not think twice about walking away from paying you the rent. He’ll have a sob story about the last bankruptcy, and another sob story for you. What shocked me with the guy who didn’t pay rent was it was NO sob story.
When renting apartments, vacancies can mess you up as much as a deadbeat tenants. You have to get a “tenant type”, that’ll stay a while AND pay the rent. You get OR the other, you got problems.
In my book, the best tenant is NEVER the one with the highest score, or the highest paying job.
Frank Chin
Re: Landlord question - Posted by Larry K
Posted by Larry K on August 03, 2006 at 19:26:41:
That credit score seems high. Unless you are renting high end property, I would look for a much lower score and focus on employment, prior rent history,and references.
Re: Landlord question - Posted by LK
Posted by LK on September 02, 2006 at 05:42:56:
I use tenantverificationservice.com. Also Landlord.com has a good source.