Newbie Question - Tenant Screening

[Mike B.]

So first time landlord here again. We had trouble finding good tenants earlier in the winter, so we pulled our listing off Zillow for a few weeks and then relisted our property yesterday with a 3% lower rent. I'm so amazed that how much bigger the response has been with just a small rent reduction and little warmer weather. Since last night we have 3 good candidates. I'm tempted to go with Candidate 3

Candidate 1 - Husband and wife relocated to Austin last year due to a promotion. Combined income about 50% above my minimum requirements. Asking for an 18-month lease. Meets all requirements

Candidate 2 - Unmarried couple. Both meet all requirements independently of one another, so combined income is at least 100% over the minimum. The primary applicant works for a large tech company. The secondary applicant owns a small business. 

Candidate 3 - A married couple with a baby. Started a successful pest control business. They have been in business for two years and are driving 3 hours a day from San Antonio to Austin. They want to relocate to be closer to their main business. His salary is 20% below my requirements, but he owns the business and his salary is set by himself. He wants to keep the salary low to reinvest in the main business. The business seems legit. Also, their home in San Antonio will become a rental when they move, so in theory, his income will be within my requirements prior to their move-in date. He has large cash reserves and is willing to prepay rent. His wife does not work. They have basically no debt with good credit. Also, they are willing to be a bit flexible with their move-in date, which is a big benefit to us. We are building a new home and if there are any delays, having the flexibility could prove useful. 

I didn't expect candidate #3 and am not sure how to proceed. Prepayment of rent sure does sound good to me. If I go with Candidate #3 I could actually pay off the rental house's mortgage, so my risk would be super low. 

What to do? 

[Timothy Douglas]

I think Candidate #3 sounds great in my opinion! The huge cash reserves and lack of debt shows financial responsibility. Reinvesting in the small business while maintaining a low salary shows self-control, responsibility, and ambition. Furthermore, he is committed to the business and the house is located close to it. It seems like they will be there a while. My question is more about the character of each tenant. When you talked to them, were there any red flags? Getting a qualified, responsible, and smart tenant that is selfish lacks integrity can be a pain because they might even have the legal savvy to make your life not very fun.