Minimum Standard for Credit Scores and Security Deposits

[Theo Daubresse]

Hello All,

I am looking into purchasing my first investment property in a C+ / B- neighborhood in Richmond, VA. In addition to checking income, employment verification, criminal background and the tenant's rental history / evictions we wanted to set a minimum standard credit score we would allow. What have others found to be a fair value for using as your minimum required credit score on similar rentals?

Additionally, we have been discussing what would be an appropriate security deposit. We have heard this can range from $500 to a whole month’s rent. We did confirm that in Virginia, the amount of a security deposit cannot exceed the cost of two months of rent. Any tips for what has worked for others here too?

Thanks in advance for your insight and perspectives!

#Richmond #Rentals #Creditscore #Securitydeposit

[Kenneth Garrett]

@Theo Daubresse

Your going to be multiple answers here. I use minimum credit score of 600. You need to look at what makes up the credit score. No evictions in the last 5 years. DTI of not greater 45%. income 3x the rent. One months security deposit. I never have the security deposit the same as one months rent. I don't want them to think it's the last months rent. To move in you need one months rent plus the security deposit.