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Updated about 7 years ago on . Most recent reply

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Kaiser Sidd
  • Marietta, GA
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chraging more rent if bad credit?

Kaiser Sidd
  • Marietta, GA
Posted

someone wants to charge more rent because applicant credit is bad. Is it legal under fair housing act?

This criteria is just based on risk and not race, religion age or sex.

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Eric James
  • Investor
  • Malakoff, TX
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Eric James
  • Investor
  • Malakoff, TX
Replied

Charging more for greater risk is what lenders do.  The greater the risk, the higher the rate.  I don't see this as necessarily out of the question. In my limited experience, even most people with poor credit will pay to maintain a roof over their head if at all possible.  I don't know about the legality of increasing the rental rate you may have advertised.  Where I have had a rental property for the past 7 years there are very few renters with good credit.  My rents have been slightly on the high side, but I have rented to people who would probably be turned away by the large, corporately run apartment complexes.  I have had almost no problems with tenants paying. YMMV.

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