Screening Criteria - Your thoughts?

[Ricardo R.]

Hi all, I am in the midst of revising my rental criteria and just want to see what you all thought about my criteria below in regards to income and credit scores, your thoughts?

1. Applicant(s) has verifiable combined income of at least 2.5 times the rent amount.
2. Applicant(s) has verifiable combined credit score average of at least 600
3. Applicant(s) has verifiable combined income of at least 3 times the rent amount if credit score does not meet criteria but is at least 550 combined average
4. Applicant(s) has verifiable credit score of at least 700 if combined income does not meet income criteria but is at least 2 times the rent amount
5. Applicant is able to provide a co-signer which meets verifiable criteria, if applicant is unable to meet the credit score or income requirements.

Any input would be greatly appreciated. 

Alex

[Roy N.]

@Ricardo R.

My first suggestion would be to place less weight on the credit score and learn to read a credit history.   It is possible for someone to have a "life event" (medical situation, divorce, etc) which has a pronounced, but short term, impact on their credit score, however their credit history indicates a more fiscally responsible behaviour over the longer term.

From a credit history, you can typically distinguish between a one-time "life event" and a pattern of poor fiscal behaviour.

My second suggestion would be to use a "guarantor" rather than a co-signatory to the lease (aka co-signer).   As a signatory to the lease, a co-signor has all the rights of a tenant, inclusive of the right of access.  On the other hand, a guarantor executes a separate guarantee {we have ours as a schedule to the lease} in which they "guarantee" the performance of the tenant.  A guarantor has the right to know whether the tenant is in good standing with respect to the lease and the requirement to open their wallet if the tenant should fail to meet their obligations.