Does Credit Score Requirement Need to be Put in Lease?

Question

If I am going to require a 600+ credit score for my rental, does it need to be put somewhere in the lease? Or would I just list it in the description when marketing the property for rent?

Bruce Woodruff · Answer

Well for the initial rental, it wouldn't need to be in the lease. But if you want it to be maintained throughout their rental, then it should be in the lease...not sure how that would work or if it's legal?

Thomas O'Donnell · Answer

I'm not going to hire a PM when I literally live in the other unit of the duplex. It's 1 property. I'm just asking questions to be sure on things as I start managing and screening myself. Maybe when I have 10 doors and I'm too busy to manage them then I'd go for a PM.

Drew Sygit · Answer

If your tenant will be living next door, be sure to set professional boundaries.

You don't want to be become besties and then have to hold them accountable for damages or late rent.

Jeff Copeland · Answer

Only qualified applicants should be signing your lease, so the credit and background check comes way before the signing of the lease.

You need to have published tenant screening criteria that address not only credit score, but also your income requirements, eviction records, criminal records, etc.

And then you need to screen every tenant the same, using the same criteria, in order to avoid Fair Housing and discrimination claims.

Note: Although I mentioned criminal records above, this is a very tricky subject. Make sure you understand the HUD guidance on the use of criminal records as grounds for denying someone housing. There are groups out there that will literally call you up and ask if you rent to convicted felons. If you say no, they hit you with a lawsuit. This is just one example of the many potential pitfalls associated with tenant screening.

If you insist on self-managing, you'll need to learn a lot of stuff about a lot of stuff. I highly recommend a website called EvictTV.com - They have hundreds of explainer videos about landlord-tenant issues (and I'd recommend watching every single one!). It's produced by a Florida-based attorney's office, so some of the info is Florida-specific, but 80% of it applies across the board.

Bob S. · Answer

Good luck

Bob S. · Answer

You are not ready, again like I have said 100 xs , Its like not owning a gun, you hope you never need it but if you do you wish you had one. Do you know how to evict? What if they fall behind, do you know how to work with them, repairs inspections etc,

everyone thinks its so easy,,,,,,

good luck

Nathan Gesner · Answer

You put it in the marketing and in your screening process, not in the lease.

Bob S. · Answer

Learning from someone doing deals hands on, not reading books and watching tapes.  I read stories daily from those that thought oh this is easy, just renovate, place an ad and rent it. Sure all is great till they stop paying, now they do not a clue what to do. Or repairs, no idea how much to pay. Have no idea how to navigate the process of getting a govt tenant. Yes, learn from someone hands on or hire a PM co for the 1st year, learn from them, hey even get to know their repair guys

All the best

Suzanne Johnston · Answer

@Bob Stevens

How does one get ready?  Sometimes doing it, making a few mistakes and learning is the best way.  Reading a book etc.  Is there a class?  Or do you think a pm is always necessary?

Does Credit Score Requirement Need to be Put in Lease?

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