Prospective Tenant

[Ruel K.]

Would you rent your condominium or any property to a tenant who says upfront that they have no credit history but can show pay stubs that they could afford the rent? This is my first post here by the way. I appreciate any feedback. Thanks.

[Marcia Maynard]

Raul, I see you are new to Bigger Pockets. Welcome! It will help you to know there are many forums available on a wide variety of subjects. Glad you got an answer to your question, but you posted in the Renter's Discussion forum, which isn't the best fit. Many people erroneously post in the Renter's Discussion forum.

Renter's Discussion: "This is the forum for renters who are looking for advice in dealing with their landlord. Ask questions about dealing with landlords, leases, tenant rights and other important issues."

Under the Community Tab you will find Forum Categories and you can check them out to find the best forum for your questions. You may find the "Landlord Forums and Rental Property Questions" most helpful.

Also, many questions have been asked and answered many times in the forums. If you use the search box and type in a key word, you can often find these previous discussions and find the answer to your questions.

Here's my answer to your current question:  You need to establish your rental criteria prior to seeking applicants. Make sure your criteria is compliant with non-discrimination laws. Screen all applicants with the same criteria. You can see an example of ours under the BP File Place (go to Tools > File Place > Other Documents > Rental Criteria by Marcia Maynard). You will see, we look at four key areas:  Residence/Rental History, Income/Employment History, Financial/Credit History, Legal/Criminal History. When we see a weakness in one of the key areas, we may ask for additional security deposit to reduce our risk.

Here is an excerpt from our Rental Criteria:

FINANCIAL/CREDIT HISTORY

1.No outstanding debt to previous rental property owners.

2.No outstanding debt to utility companies.

3.No outstanding debt in excess of $1000 that is not in a payment plan.

4.No excessive monthly financial obligations - more than 20% of income.

5.Lack of credit history or marginal credit history may result in additional security deposit.

6.Derogatory credit (past due accounts, collections, charge off accounts, tax liens, judgements in excess of $1000 and/or bankruptcy) may result in additional security deposit or denial.

Welcome! All the best to you! Perhaps I'll see you in the Landlord forum!