What's so special about a 600 Credit Rating

[Pete Woelfel]

I'm a super small fish renting out a 3 BR 1 BA 1000 sq/ft property in a nice but modest area in Milwaukee. I have been involved in REI for just a couple years and have not experienced many vacancies. I have had 100+ inquiries online and several completed applications. The requirements I have posted online are no vacancies for 7 years, > 600 credit rating, clean background check, and 3x rent gross income. I decided on these qualifications somewhat arbitrarily based on the advice of other investors/BP. I have had a number of candidates that have met every criteria with the exception of the credit rating, with some as high as 595. All of these credit reports and background checks have been done through zillow.

1) Why is the common expectation a 600 credit score?  Why is that the arbitrary line in the sand?

2) Am I at any risk for litigation if I accept a tenant with a credit rating under 600 now?  I've met several of these people personally, have income verification, and feel extremely comfortable allowing them to rent, but do my facebook and zillow ads put me at risk to allow them?

3) If I need to talk to an attorney, what type of attorney should I be looking for?