Choosing between higher income or better credit applicants

[David Barwick]

I’ve been showing and taking applications for my first rental property. The applicants all seem to fall into one of two categories:

1. better than 3x income but credit problems ranging from missing some payments for some, all the way to bankruptcy or eviction for others. 

2. right at 3x income between spouses’ combined income, good credit history. 

I’m leaning toward choosing someone from category 2, but I’m curious what others with more experience would advise. 

[Jim K.]

@Chris Mason has offered some great advice.

Credit reports and scores can be highly deceptive to self-managing landlords. He hits the nail right on the head when it comes to medical versus car payment/credit card judgments. In my market segment, western PA C-class in single-family and apartments, not wearing the "handcuffs" Chris talks about makes a huge difference. I will rent to bankrupts with medical debt if they have a steady job. I'll rent to guys with prison records if they have a steady job and a long-term relationship. But if you've failed to pay off your car or worse, have a landlord judgment or eviction on your record, you might as well get out there and find a dumpster to lean your piece of cardboard against for the night.