Advice Needed: Rental Applicant with Credit Issues

[Louis A.]

Ok, so I've been debating this all day and I need some help from the community.
I have a married couple who want to rent one of my units and they seem very nice, but they have a checkered past with Credit.

Here is the scenario:
- Apartment for Rent $1500 / Mo
- 3 Bed / 1 BA
- No kids, no pets, non-smokers
- Class B Property
- On market for 2 weeks, multiple showings with only 1 applicant (husband/wife)
- Wife has superb credit, 800 FICO, no outstanding debt/loans, Income $70K
- Husband has good Income $90K, but credit is an issue.
 > Filed for Chapter 13 in 2010
 > Past Due Accounts sent to Collections in 2012 (ATT $1663, Comcast $574, Utilities $504)
 > 2 Judgments in 2012 ruling against him -- 2 credit cards for a total of $13K 
  > $2K Mortgage for Primary residence has 3 years of history with no late payments -- Home is currently in escrow.
 > Tax Lien $45K -- I presume this will be settled upon close of escrow of his P-Residence, but will verify
 > No Car Loans
 > He has a couple credit cards that have zero balance, no issues since 2012

According to them, they fell victim to the housing market crash and had 2 investment properties go upside down and could not find renters. That seems plausible and I would understand why they would become delinquent on the mortgages of their investment properties, but what gives me reason for concern are the accounts sent to collections. 

Perhaps I am over-analyzing this ... There hasn't been any bad credit issues in the past 3 years and their income covers rent by a factor of 13.3. I'm inclined to approve them based on the wife's financial profile alone, but require a deposit of 1.5 months rent based on the risk profile of the husband.

What are the thoughts from the members of the community?

[Account Closed]

Turn them down.

One of the things I looked at on a credit report is the type of thing they let go to collections.  In my opinion, a cable bill is a deal breaker.  If you can't pay your cable bill, first of all you turn it off.  Secondly, you pay off what you owe before it goes to collections.  Anyone who will let a cable bill go to collection, is a horrible risk.  If he can't pay his cable bill, he sure can't pay his rent.  And obviously, his cable is more important to him than avoiding bankruptcy.

Her good credit can't keep him from putting them both in debt.  She married a nightmare.  No need for you to get in the middle of that.  She won't be able to keep up with his spending, or gambling problem or whatever it is.  

They are a package deal.  Think of it in terms of two separate roommates who want to be on the same lease and one of them is a horrible risk.  Sorry, but you've got to turn them both down.

Do NOT ever, ever, ever waiver from your criteria.  How do I know this?  From learning the hard way.  I hope you don't have to learn the hard way, too.

Wait for the good tenant.  A bad tenant will always be more expensive than waiting for a good one.