Extra cash for poor credit tenant?

Question

I got the below message from a prospective tenant, stating her credit is not good but she can front money to offset this fact. I’m in Maryland and I think the most the law will allow is 2x rent for a security deposit. What would you do in this scenario assuming stable employment, which is not a given as I have not sent the pre screen. Would you ever consider easing credit score restrictions to fill a unit? I wonder how much credit score really matters versus history. I’d think. A low credit score from no credit is much better than bad credit.

“Thank you for responding.  The 28th works for me or the 1st.  The sooner the better for me.  If it will help speed the process up once I view the property I would absolutely welcome a call to discuss the qualifications.  To be fair I do not know how strict the credit requirements are, but I am a recently coming out of a difficult divorce and my credit reflects that.  However, I am in the position to pay a minimum of four months rent in advance.  Anyway, we can discuss the details when we speak.  I look forward to hearing from you.  I can be reached at”

Account Closed · Answer

Run the other way.  As fast as you can.

"The sooner the better for me"  OMG, giant red flag.  Why is this tenant desperate?  Desperate tenant = ginormous red flag.

Bad credit = red flag.  You can figure out why.

Cash up front = red flag.  Why do they have tons of cash, but bad credit, and they're desperate to find somewhere to live right now?  No scenario you can think of is good.

Divorce = red flag. Usually lots of drama and short tenancies.  They usually move back out.  Or their ex moves in.  I've never had this work out well.

Have written criteria that you use for all tenants.  And then, if they don't meet your criteria, you deny them.

Remember, you aren't running a charity.  It's not your job to find reasons to rent to tenants.  it's your job to deny them if they don't meet your criteria.

John Teachout · Answer

We will accept a lower credit score "sometimes" on a case by case basis. Our general requirement is 600. If someone is in the 560 range or higher and everything else looks good we'll usually offer a contract with an additional 50% security deposit. If they pay perfectly for the first 6 months we return that. It makes a big difference to us "why" their credit score is low. If someone doesn't pay their bills and has charge offs, items in collections, repossessed vehicles and any of these items are recent history, then sorry, we can't offer a contract. If the credit score is low because of an event (health, divorce, etc) then we'll weigh our options...

For the most part, this has worked out. But if someone's credit score is very low or has recent marks, we move on. Just be cautious on this one. An empty unit is not the worst situation by a long shot.

Tim Miller · Answer

For us it depends on what is on their credit report. If it's only medical, we will over look that. If they can't pay their utilities, we will deny them.

Anytime they are too pushy or demanding, we deny them right away. They beg and give a sob story, we deny them.

Like the others have said, these are all RED FLAGS. Take your emotions out of this process. If you don't, it will come back and bite you. Good luck!

Beth H. · Answer

I agree wholeheartedly with Sue K. With the red flags.  I accepted someone into one of my units with good job but bad credit who had to move in right away and you know the rest.  I got the 2 month security deposit and first month rent and that was it. It took me 6 months to get her out and she even subleased the unit during eviction.  I no longer accept people who need to move now, cant get utilities in their name and want to pre pay rent.

Patricia Steiner · Answer

You made the right decision...what starts out crazy, ends crazier.

Brentin Trent · Answer

Thanks for all the responses, everyone. Decided to pass on this tenant!

Extra cash for poor credit tenant?

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