How do I evaluate a cash-only applicant?

[Patrick Rose]

I have an applicant that only deals in cash. He's a bit paranoid about the banks, doesn't have much of a credit history. No credit cards. No debt. But has lots of cash. I'm trying not to be blinded by the cash, so how do I evaluate him? I'm waiting on his credit report, but are there other things or areas that I should investigate on a cash-only applicant? He knows that he doesn't have good credit, so he's offering to pre-pay X-months. I'm not sure I'm allowed to accept prepayment like that in MO. Thoughts? Mid-level SFH. Thanks for any advice.

[Thomas S.]

Do not accept prepayment, it is nothing more than a bribe. Accepting is being blinded by the cash.

If he has bad credit, below your screening standard it is a automatic rejection. If he has no credit due to no credit history you will need to dig much deeper into his background. I would have a minimum requirement of two years with the same employer, copies of three consecutive pay stubs and he will need to meet the minimum income requirement.

You will need to contact his employer to confirm employment as well as contact his present and previous landlords. If he wants to rent he will need to do what ever is necessary to provide the information you  require otherwise you simply do not waste your time and reject him. I would put minimum effort into helping him qualify.

If you accept him he must pay other than in cash, money order, and it will be his responsibility to insure he has it to you by due date. You never pick up tenants rent.

Applicants like this I usually reject due to the amount of extra work involved in confirming they qualify. I also try to avoid "paranoid" individuals as they tend to have multiple other mental issues making for a high demand tenant. Not worth my effort.