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Updated about 5 years ago on . Most recent reply
Minimum credit score for a potential tenant?
Hi everyone, just closed on my first property and now we are up to screening tenants. I have two sisters interested with a 545 credit score and a 485 credit score. Otherwise no red flags.
Can anyone help with some advise?
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Generally I like 600 and above. BUT I don't really base anything off the number score alone. I agree with @Jacob Sampson in that I try to understand the cause of the bad score. Are they consistently not paying bills, or was it a one time life scenario and they are getting back on track? I've also seen people working the Dave Ramsey method that have terrible credit because they are closing accounts once they are getting paid off.
For the income, I won't accept anything under income of 3x rent. If someone is spending over 1/3rd of their salary on rent alone, it will be hard to maintain that should anything happen to that salary.