Which tenant would you chose?

[Jordan Hamm]

First time landlord here... would love your guys' input. I've got a couple decent candidates I'm considering, both with pros and cons...

1st OPTION:

Doctor + retired woman, both mid-60s, no kids, no pets

~ 9x monthly rent in income

2-year lease... potentially longer term

Great credit score

-- However --

Tax liens, bankruptcy, both have "messy" divorces in past couple years

Only been dating for about a year

DUI, expired plates, and another charge I'm looking into

--

2nd OPTION:

Young couple, Dad + stay-at-home mom, baby, small dog

Relocating from Texas

~ 4x monthly rent in income

1-year lease... almost guaranteed not longer than that

Already had higher house payment in Texas, so rent would be cheaper

Excellent credit score

Perfect background check

Perfect credit report

So the question is, do you go with the older couple without the pet who's already interested in signing a 2-year lease and could potentially stay longer? Or are the red flags too worrisome and you go with the young couple for a year knowing they're almost 100% just renting to get an idea where they want to live and eventually buy?

Thanks guys! I'm really interested to see what you guys think!

[Tyson Hill]

I'll take option 1 and here is why:

• I like stability- option 2 is relocating and there is no guarantee they will like the area, new job, or whatever reason is causing the move. Texans love Texas and not much else :)  Option 1 lives in the area I presume so the likelihood of them not having issues with area, schools, etc. is higher. You mentioned option 1 would be no longer than a year. Take the best long term possibility.
• 2 year lease. The name of the game is avoiding turnover and down time. The fact that he is a doctor makes it nice and easy to garnish wages in the event they do not honor the lease. Furthermore if something changes and they need to move you can work a buy out. They make 9x the rent, so you should be able to be compensated well that will allow you to re-rent the unit without taking a financial hit. 
• Option 1 has no pets, just the icing on the cake!

My 2 cents, good luck!