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Updated over 3 years ago on . Most recent reply

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Confused about choosing between 2 tenants

Posted

Hey ! 
so I’ve got 2 potential tenants that I need to choose from ASAP , as I’m moving out and need to put the house on rent immediately. We’re looking to get either one of them on a two year lease. 
here goes... 

tenant A : Elderly lady , lives with her daughter and granddaughter. Old lady is the only earning member. Works with a consulting company and earns about 10k a month before taxes. Has a credit score of more than 700. 31 year old credit history. Has always paid on time and never defaulted. But her debt:income ratio is high. She’s borrowed more than she can pay on credit cards. But she showed proof of getting over 200k from the sale of her property in Austin. However, her job doesn’t seem to be very stable. 
ps: although she lost her job due to covid she always paid her rent on time. 

Tenant B : young lady with 3 kids who really need the schools in our area. Recently divorced. So she’s the only earning member. She works as a sales rep with a reputed builder. she has a high income as it is purely commission based. Her credit score is in the low 500s. Has several defaulted payments and has been paying 5-6k a month to her divorce attorney. She makes over 230k a year but has only 3k in her bank accounts. Doesn’t have much debt but is carelessly spending everything she earns. 
she has agreed to pay 4 months rent as deposit. 

Who do you think we should go with and why ? 
please pour in your suggestions. 

Most Popular Reply

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Scott M.
  • Real Estate Broker
  • Rochester Hills, MI
2,019
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Scott M.
  • Real Estate Broker
  • Rochester Hills, MI
Replied

Sounds like you have a self imposed deadline right?  I think the best option is the one you didn't list...option C.  I think you recognize neither is great, thus you posting it on the internet.  

Neither is great, both have issues.  Right now, in this moment, why would you put someone in your home you are not as close to sure as you can be?  Why not keep it on the market for a bit and find a better fit?

If you are asking what others would do, well, that is what I would do. 

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