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Updated over 9 years ago on . Most recent reply

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73
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Chris S.
  • Gettysburg, PA
9
Votes |
73
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Should I rent to this family?

Chris S.
  • Gettysburg, PA
Posted

I have a new rental that I just invested a good amount into. The renovation will be completed next week (I have not yet advertised the rental). However, a couple that inquired about one of my other properties reached out and would like to rent this property. The situation goes as follows. 

This couple owned a home. Both lost there jobs and they fell behind. There home went into foreclosure and they moved in with there parents (they have 2 small children as well). They have been living with his parents for about a year and each of them have found a new jobs. She is making $28,000 yearly and he is making $54,000, the rent is $1595 not including utilities. There credit is a 612. I ran there application through E-Renters and they passed that portion of the screening, but failed the credit screening. Areas of concern are the foreclosure, credit, and his job since it is very new (just started 2 weeks ago). 

I am considering them because they are able to move in November 1st, and it may be more difficult for me to find tenants for a Decemeber or January move in date, due to the holidays. If I would rent to them I was considering proposing the following. 

My normal security is 1 month rent. I can charge 2 months rent and do a 6 month rent agreement (essentially a trial period). If all goes well, in the spring when the 6 months is up I can offer them a 1 year. 

Any advice would be appreciated. Would you rent to this couple? 

Most Popular Reply

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17,480
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30,168
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,168
Votes |
17,480
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

@Chris S. What is dragging the credit score down? If it is mainly the foreclosure I would rent to them.  I typically ask for a 620 credit score or higher.....but I give some leeway for between 600-620 if the root cause is a short sale, foreclosure, or collections more than three years old.  If there are more recent things like late payments in the last 9 months, then I would probably pass.

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