Good Credit Score, but High Debt-to-Income Ratio! Should I rent to them?

[Marc M.]

Hi Folks...I need some BP advice:

I am managing a rental property for a family member. I found a person who wants to rent the place (and thanks to BP forums, I used MySmartMove as many people recommended)....they have a 752 credit score, but are carrying a lot of debt, which includes a mortgage although their house is under contract and will close in a week or so. This person has a good, long-time job, but when I subtract their after-tax salary from their monthly debt payments (including the cost of renting the house I am advertising), it's in the red by $900. When I factor in the sale of their own house (assuming their mortgage payment will disappear), it's still in the red by $100. If they pay off some of their other debts with the proceeds of their house sale it might help out....there is currently $37K in equity in the house.

What do you think? How much should I scrutinize someone's financial picture. They've sent me pay stubs, banks statements, paid for their own credit and background check. I can't really call a previous landlord since they already own, but their credit score is solid...no history of late payments or anything. 

Looking forward to your responses.

Best,

Marc