Newbie needs help picking the right tenant

[Iaroslav Demydovych]

Finally after a week of having my property on a market i have 2 application and i can't see to pick one. Also, this is my first rental ever so wish me luck. So here is the scoop: the rent amount is $1275. 2.5 time the rent no criminal

applicant #1- older gentleman with his step daughter and 2 kids. gentleman has 3 different income.

income A - $400 from new paper delivery

income B - $1573 from disability

income C - $600 from pizza place

Credit score 634

Obviously he won't qualify by himself. His daughter works at best buy make $2000 per month which will not qualify her by herself either beside her score is 504 or something and 2 bills in collection ( red flag) . The girl just got out of a toxic relationship and moving in with the father. My worry is that the girl might split at any moment. together they make a lot over the 2.5 time the rent.

Applicant #2

Older lady in her early 40s no kids no husband. works as a nanny full time ($2800) and work part time as care giver to elderly ($975) and her score is 675. she seems like a better choice.

I would really really really appreciate any input!

Thank you

[Erik W.]

I check 4 main areas: credit report, court records (criminal & evictions), income, and land lord references.

I don't look for a specific credit score.  I look at what the report says.  Student loans and Medical are not major red flags, unless they are small (<$1000) and not being paid at all.  As long as they are making some effort towards paying what is owed, typically that satisfies me.  Collections and judgments are major red flags.  If they won't pay their utility bill, you risk property damage if they let the utilities get turned off during cold weather.  Generally, even though I don't look at scores specifically, I've found anyone below 540 has too many negatives pulling them down and I require either a double security deposit or a rock solid co-signers (lives in state, sufficient income to pay all their expenses plus the rent, owns real estate so isn't going to run off tomorrow, rock solid credit).

Criminal: no violent felony convictions.  No "pattern" of trouble with the law.  3 or more misdemenaors (except traffic tickets) in 5 years or less is NO GO.  Felonies must be at least 3 years old after completion of the sentence and a clean record since.  Prefer no evictions but will take a person with 1 eviction provided they have paid off or are currently paying off any money owed to former land lord.  I must be able to verify the payment(s).  I have other criteria too many to list here.

Income: minimum 3x the rent from garnisheable sources.  Disability, social security, and pension income is not garnisheable, so even if you take them to court you cannot collect.  Job must have at least 90 days work history.  No "job hoppers" (i.e. new job every year).  No "McJobs" that they will leave the minute they don't like the boss lecturing them for showing up late every other day.  Prefer something that requires training or a license to get because it shows they value that job and won't let go of it easily.

LL references.  Must have good current and past land lord refernce, or I require a co-signer or double security deposit.  I verify current land lord by doing an in-home inspection where they currently live.  Whatever their current home looks, smells, and sounds like is what your house will look, smell, and sound like 2 weeks after they move in.  Priceless information!  I've avoided a hoarder and a person with 3 pit bulls this way.  Moving in from out of town?  Call a local real estate office and offer the first board, starving floor duty agent $50 payable via PayPal, Zelle, or Venmo upon return of pictures and a short checklist.  Only do the in-home inspection AFTER all other areas are approved to avoid wasting time and money.

I'm not too thrilled by either of your applicants.  Insufficient, unstable, somewhat non-garnisheable income.  Bad credit.  Any references?

Spring is almost here and Govt Money Gimme Season....err, I mean Tax Refund season is upon us.  Better applicants will be moving starting early February as the Tax refund anticipation loans start getting issued.  If it were me, I'd wait.  Better a vacancy than a marginal or bad tenant!