Tenants "sort of" look good

[Carol Burns]

Have a couple with one small dog, good jobs, plenty of income, moving into the area (already met family members nearby).  But credit is pretty poor.  55 percent on time payments.  But they say they are selling their home and paying off their debts.  I did check and yes they do have a house they are selling that is pending for sale.  Had an idea of getting first and last month's rent.  But can I set that up that last month's rent can only apply to the actual last month on the lease?  And will that even protect me?  Any advice?    I do like the fact that they are a little older without a passel of kids, with good income and job history.  EDIT:  Just found out the guy has a misdemeanor petty theft charge from 3 years ago.  Guess that is a no go then?

[Nathan Gesner]

If you have to ask the question, it's probably a hard pass.

It doesn't matter if they are selling a home and making a lot of money. If they aren't responsible with what they've got, they won't be responsible with a larger amount. It's why so many lottery winners end up bankrupt.

They are irresponsible and at least one of them was recently criminal. There are better options out there.

[Scott M.]

List your county and state to get a better response in 1st/last but more importantly check your local laws.  Know them and follow them. Not every place in the US allows for a landlord to collect 1st and last.  

[Julie Hartman]

@Carol Burns Was it a charge or conviction? Criminals are not a protected class but if it was not a conviction then you may have to overlook it, depending on your location. In terms of the credit, etc, as @Scott M. said, you will do better checking your local laws on how much you can collect. When we like someone but are concerned with credit history, we may ask for a larger deposit. 

[Nathan Gesner]

If you have to ask the question, it's probably a hard pass.

It doesn't matter if they are selling a home and making a lot of money. If they aren't responsible with what they've got, they won't be responsible with a larger amount. It's why so many lottery winners end up bankrupt.

They are irresponsible and at least one of them was recently criminal. There are better options out there.

[R.J. Lange]

Carol- if you have not already determined a 'good' tenant criteria to work with go with your gut. (but recommend coming up with a screening criteria for future applicants)

Past rental and credit will be good indicators of how much effort you will need to be putting in to collect the rent. 

If you feel that it could work- require a 6 month pay in full option to pass the poor credit and rental history- be prepared to give a notice of termination at the end of the lease. This will at least get you into a better leasing season but save up for repairs and cleaning.