Is it realistic to look for tenants with no collections in a class B neighborhood?

[Kyle Liu]

Class B neighborhood, 2 adults 5 minors for a 4BR, no pets. The applicants' gross family income is 3x the rent, one has credit score if 700s the other low 600s. But they both have debt in collections from discretionary spending, ie: boating club memberships and credit card, not from medical bills or anything. This is my first time renting in this area and haven't had a lot of experience with the quality of tenants yet, my current criteria is someone with minimum 700 credit score and NO collections (with the exception of medical bills), is that realistic? I guess I can deny the application and just keep looking until the right applicant comes along, but my PM company's recommendation is to approve. We only got one reference from a previous landlord so far and it was positive. I'm waiting on more references before making a decision.