Tenant screening: credit

[Lance H.]

Hello,

Hoping to get some opions. I have someone who looked at my rental last night. I got a great read from him, seemed like a very down to earth honest guy. He and his wife want to apply for the rental so that is the good news.

To make a long story short, he ownes a house from a previous marriage that he is renting. Basically, his new wife doesn't want to live in the house he bought with his ex, but it's underwater so he can't sell it. Rather than let it go back he is renting it out. He is right in the middle of refinancing that house, and he is adament that I NOT pull a credit report.

He said he has the mailing the lender sent him with his scores and they are all low 700's. He is willing to show me that, as well as bank statement, tax returns, pay stubs, basically he said he will provide anything and everything I ask for except let me pull credit. He is fine with background check, just not credit.

He can't wait to move because he is relocating here for a new job, has offer letter and everything for me to verify.

What are your thoughts on this, would you allow a tenant to move in under these circumstances? What documentation would you ask for from him? Would you require an additional deposit (I normally require 1 month damage plus 1st months rent)?

Thank you for the feedback!!!

[Steve Babiak]

See if his mortgage payments are all in good standing; that will be comparable to seeing if his past rents were received on time. You will need to have him complete an "authorization to release loan info" form, and there is one in the BP fileplace that you could use for starters (some lenders will only accept the lender's own form for this, so be forewarned).

The "pull" for the credit score is maybe what he is afraid of; but it could be there are other nasties lurking in there on his credit report. You could have him get a report right before your eyes using one of those free annual report sites and see what is there - that shouldn't count against him as a credit "pull".

How about his new wife - is she filling out all the application paperwork and supplying her credit, etc? She'll be living there with him, and as such she would have to complete all of this for me or be declined. I had one applicant years ago who did not want his wife's credit pulled; I told him to allow it or be declined on the spot. He rolled the dice, allowed for the credit pull, and - DENIED. In both foreclosure and bankruptcy under the wife's name.

I still think there is something being hidden from you by him in this one ...