Investor · Miami FL 33137 · Member since 2019 · 40 posts · 29 votes
How do you treat a tenants credit application that only has student loans on their credit report that they just started paying 3 months ago? In my opinion, this is a very weak history of their ability to repay debt even though their actual scores do meet my minimum requirement of 650. There are no other loans or credit cards on either of the 2 applicants. Curious how others would approach this
My requirement is: "Minimum 650 credit score with sufficient credit history"
I hope you're doing well. Generally, students can either be very good tenants as they focus on their schooling diligently or they can be very unreliable. I myself benefited by renting while going through law school and had no issues. Fortunately, student tenants in my properties have also brought up no issues.
Having a 650 credit score can be a good start but if you are wanting to adjust your requirements to include employment or longer history then you absolutely can during your tenant application process. If you are particularly concerned you could see if they are willing to have a guarantor sign also on the lease agreements, or do a short lease such as 3 months to test them out and then a longer lease afterwards.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
1y
I would be a bit nervous as well. Trust your instincts. And maybe revise your requirements to include this situation, so in the future it is just a solid pass.
I hope you're doing well. Generally, students can either be very good tenants as they focus on their schooling diligently or they can be very unreliable. I myself benefited by renting while going through law school and had no issues. Fortunately, student tenants in my properties have also brought up no issues.
Having a 650 credit score can be a good start but if you are wanting to adjust your requirements to include employment or longer history then you absolutely can during your tenant application process. If you are particularly concerned you could see if they are willing to have a guarantor sign also on the lease agreements, or do a short lease such as 3 months to test them out and then a longer lease afterwards.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
1y
You are correct this is weak background. First, verify previous housing as well as verify the stated income. Then, if all this looked good, I would ask for cosignor. If no cosignor, I would require additional sect deposit (amount can be determined by state law).
Rental Property Investor · Indianapolis, IN · Member since 2025 · 15 posts · 14 votes
1y
I second Curtis on this—while the credit score meets the minimum, the limited credit history and recent repayment activity don’t provide a strong sense of their ability to manage debt over time. In a case like this, I’d definitely consider requiring a qualified cosigner or a higher security deposit to help mitigate the risk. I’d also be sure to call any previous landlords, current employers, and listed references to get a clearer picture of their reliability and rental history. Hope this helps!