Tenant wants to count unreported cash income

[Kimberly Weatherford]

Hello everyone. We are looking for a tenant for our first rental property. One applicant is a tattoo artist so basically self-employed. We asked to see tax returns and what she has reported as income does not meet our 3x rent requirements. She said she makes a lot in cash that she doesn't report and that would be enough. We asked for bank statements showing deposits, and while there is definitely more than she is reporting, it didn't make the 3x rent number.

Her credit score is 700+. She has plenty of cash on hand and large dividend-paying stock accounts and is willing to put down a higher deposit. Said she had one eviction-although it didn't come up on the background check. It sounds like she was kicked out of an apartment for writing a rude note and leaving it on someone's car. 

Would you accept this tenant? Ask her to prepay for 6 months rent? A larger deposit? Or just pass based on inability to prove income?

For what it's worth, we have two other well-qualified tenants applying for the property so filling the vacancy isn't an issue. Our inclination is to pass but we want to be sure we have thought through our options.

[Michael Jones]

Stick to your screening policy. Not just to protect you from making the right decision with this tenant but to protect yourself from a discrimination lawsuit. If you allow her to count unreported income but do not allow someone in a protected class you are liable to be hit with a suit.