First tenant screening using SmartMove- Need Help

[Branden Smith]

I just received my first applications back along with their credit/criminal history. This will be my first time going through the screening process so any help would be appreciated. To start I used the Ultimate Guide to Tenant Screening and I can easily say it was a huge help. I did set all of the guidelines and I have no doubt it saved me from a lot of phone calls. Now that I received my first credit/background check back from SmartMove I want to make sure I continue to do things right. I have spoke to employer's and the current landlord. Please let me know what you think. Thanks in advance!

Here is some of the information. 

Total of two applicants

overall income to rent- 6.3X

FIRST APPLICANT 

-resident score 626 and the recommendation was accept

-Sole income enough to cover 3X rent

-Total of 7 accounts with 0 past due payments

-Collections: 19 for a totaling around 5K only 3 are not related to medical (looks like phone/cable related)

-1 federal tax lein and 2 civil judgments 

-No evictions on record and no criminal record

SECOND APPLICANT

-Resident score 728 and the recommendation of do not rent (says open bankruptcy but under public records it says there is only one on record and it was settled in 2007)

-No evictions and no criminal records

-0 Past due payments

-3 collections totaling $138 all 3 medical with 2 saying closed to charge off or repossession. 

-Bankruptcies: one chapter 7 bankruptcy dischard/date settled 07/2007

-Judgements: 1 settled in 2015 by the same recovery company for the medical collections

[Account Closed]

Branden, Antelope is the same thing as Roseville/Sacramento, etc.  You are not hurting for applicants in your area.

I can't imagine that your criteria includes accepting applicants with judgments and collections.  If it does, change it so it says to deny for them.

One of your applicants even had a "do not rent" to them recommendation from SmartMove.

Why are you trying to get these square tenants into your round hole of criteria?

You should never work this hard to make a tenant work out.  Unless, you have a rental in the middle of nowhere and there is only one applicant available, and you absolutely can't wait for another one to come to town.

We are seasoned managers and landlords here.  For your own sake, please listen to us.  Don't rent to these people.  They are too risky.  Sure, maybe you'll somehow get lucky and you can thumb your nose at us.  

And maybe you'll win the lottery.

Not trying to be mean.  But, please remember this - if you have to start putting in time to start investigating the reasons you should just deny, trying to make them into golden eggs - you need to recognize that moment and just stop.  And deny.  

Think in terms of a lender and the hoops you have to jump through to get a loan.  You are like a lender.  You are choosing someone to move into your investment property that is worth hundreds of thousands of dollars.  Can you afford to choose badly?

Did you know that when someone files for bankruptcy, they can get a stay on eviction?  Someone who is a bankruptcy waiting to happen, can not only postpone your ability to kick them out - but then they can file bankruptcy on any money they owe you.

Plus, if you jump through all these hoops for these tenants, how will you explain to fair housing why you don't do it for everyone?  Setting criteria is not only good for helping you avoid trying to fit that square tenant into a round hole, but it also CYA with regards to fair housing problems.

Just, really, Branden.  Stop the madness!  It's giving me an ulcer :-)