Pre-screening criteria - are mine realistic? (Chicago, IL)

[Edward Kuk]

Hi,

It's been ~4 months since my wife and I started our real estate journey. After scouring the MLS every day, checking out properties every weekend and 2 accepted offers that fell apart during inspection, we finally found our place. We are weeks from closing the property, though all major items have been agreed upon. There will be some cosmetic renovations but aim to start renting out the place around late September/ early October.

I'm currently putting our pre-screening criteria together and wanted to check with the experts on this forum if what I"m asking for is actually realistic/ reasonable. 

There are three units we are renting, the 2nd level we plan to rent for ~1200, 1st floor for ~1600 and garden unit for ~1000. This is in Irving Park Chicago Illinois, which I would classify as a B-level area that has been improving a lot in the last few years. I'm trying to see whether I would be able to find tenants that meet my criteria with those price points or am I out of my mind?

Criteria list:

Standard stuff - no eviction, criminal history, etc.

No pets

Credit score about 700+

Stable job with 3x gross income

No smoker

Am I shrinking my market too far or is this absolutely reasonable. This is our first time landlording so curious to get your perspectives.

Appreciate all the help this forum has provided so far! It is really instrumental in setting up new investors for success.

Thanks,

Ed

[Brooks Rembert]

Hi @Edward Kuk, it's all pretty standard stuff, though I might consider lowering your credit rating down to the 670-680 range.

Default rates are still very reasonable as compared to 700+, but you'll open up your candidate pool.

We use 680 for our rentals.

Pets is a biggie too. LOTS of people have pets.

We simply use a one-time pet deposit fee (non-refundable) and limit it to a cat or a less-than-25 pound dog.

We've not had an issue yet.

We make them sign a Pet Addendum which lays out requirements like carpet cleaning  and flea and tick treatment prior to move out.

Best of luck!