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MARK TETAPRESENTED BY:
DETERMINING TENANT CREDIBILITY
As a landlord, making a decision on the “worthiness” of a potential tenant can be difficult
The most important determinant is always the individual’s credit score.
But there are several additional factors that should be taken into consideration when making a decision on a tenant:
How old is your applicant?
FICO scores will vary based on the individual’s age
If your applicant is younger, they may not have a large enough credit history to produce a “higher” score
What Factors Impacted Their Score?
Make sure to take time the time to review the credit reports
You may be overlooking a great tenant because of factors that don’t concern your line of business
For Example: Credit Scores take a hit every time an inquiry takes place. This (generally) has nothing to do with whether the person pays their rent on time
What’s the possibility of getting a cosigner?
It’s possible to find a tenant that could be a good fit, but their credit score is not particularly strong
Ask for a cosigner on the lease
The cosigner can provide backup if rent payments are missed by the tenant
Additional Pro Tips:
If a cosigner cannot be acquired, you can suggest:
Month-to-month leasing
High(er) rent payments
Automatic payments
