Realistic Tenant Credit Score

[Joel W.]

Hello,

I'm developing a business plan for my REI and I'm wondering what credit score do most people use to determine potential tenants? 780,740,720, 550???? Is the score or the record what concerns landlors most?

I plan on using 35% of income as a maximum for rent affordability. Is that practical?

Thanks

[Tyler Brown]

Originally posted by @Tyson Luthy:

@Ariel O.

 Good catch (forgot to mention that) I also look at evictions!

I'll call references too, but be careful with those, they are easy to "game"

 As far as the applicant putting down their friends or whatever for references, I have a little tactic that helps:

I have them list references of both former or current employers, as well as former or current landlords.  I'll call up the person they listed as an employer and say "Hi, John Smith said you're his landlord and I was looking to get your opinion of them as a tenant?"

And I'll call up whoever they listed as a landlord reference and say, "Hi, John Smith says he works for you and I'm looking to confirm that."

If the person on the other end of the line goes along, then you know they lied.