Minimum MH Lot Tenant Credit?

Question

Does anyone have any recommendations for minimum credit criteria? Obviously, I don't want to exclude my entire market, but I also want to avoid problem tenants.

For reference, this is a 9 lot MH park in Florida. Mobile Homes are owned by the tenants - they lease the lots from us. This park is in a more rural and less affluent area of Florida.

Andriy Boychuk · Answer

@Lane Register The credit score is not very important in our industry unless the tenant wants to buy a new home. @Jeffrey H. had the good point in his response.

Here are criteria that we are looking for:

• occupation 
• length of occupation
• references (personal, professional and landlord)
• If the tenant gave you permission (check your local laws about it as @Jeremiah Stephen adviced), you can check criminal records, liens, bankruptcy, unpaid bills and judgments. We use TLO service by TransUnion.

@Lane Registerundefined

Jeffrey H. · Answer

I check to make sure people have a bank account and that they have a steady job - even better if two occupants under the same roof with this. Also check their rental history to make sure they're not professional squatters. I have been landlord to tenants with terrible credit but worked out because having a roof over their head was important - paying their car note and credit card debt was not.

There are tons of threads on screening tenants with bad credit here - read up and you should be fine. Good luck.

There are tons of threads on screening tenants with bad credit here - read up and you should be fine.  Good luck.

Andriy Boychuk · Answer

An assumption kills sometime :)

I used the form word but I ment an application (rental application). We have paragraph about the background check in our rental application and a tenatn signs below.

Jeremiah Stephen · Answer

people keep mentioning signing an authorization form.  If people are completing a rental application, your rental application should have language indicating their release of information to you.  This is why I recommend working with a company who is interested in building relationships to partner to provide forms to support your ventures. We use www.tenantwatch.net

Jeremiah Stephen

Tom Ott · Answer

Great questions! First thing you need to do is have them sign an authorization form, which allows you to look up their credit report and do a background check. Never simply look at a credit SCORE, but make sure you look at the whole REPORT. Someone could have a good score, but owe a lot of money on collections. (I know, but it happens)

Analyze their credit report and if you feel comfortable, do a background check and make sure their criminal history checks out.

Another key factor is employment history. Make sure they have a job of course! You also want to make sure they have had the job for more than a few days. Remember their ability to keep their job (or have a steady income) will directly effect their ability to pay the rent.

Always fill out a hard copy of the application. We let people apply online or in person. If they apply in person we simply input the data ourselves. It is always handy to have the hard copy when needed.

We always have them submit pay-stubs. 2 - 3 most recently ones give us the information we need. You want to use that information to check to make sure they have enough money to pay their bills, including the rent. We don't normally ask for a license until they are signing documents, but that might be different depending on your state.

Please let me know if you have any questions! I handle o a lot of tenant screening.

Jeremiah Stephen · Answer

First of all, I would suggest you understand the landlord tenant act for your area.  Regarding the background check you do, I would think you should know as much about the applicant as possible. It doesn't mean your going to refuse them it allows you to have a clear picture of who you are dealing with as you enter the relationship.  You are building a community in the neighborhood and I don't know anyone interested in living in an area where anyone with a pulse can move in to the neighborhood. If they know you know about their past the accountability may help them?

Lane Register · Answer

Awesome - thanks for the reply.

Minimum MH Lot Tenant Credit?

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