If the market is tough, I reduce the rent rate over the full 12-month term.

When you go to a Bank or Credit Union, they can only offer you what products that bank or credit union offer. 

Credit (loans) become much more difficult to obtain and if available you pay a MUCH higher interest rate with a much higher down payment requirement2.

.: Here's a good guide with links to the law: https://www.tenantresourcecenter.org/earnest_moneyIf you charge $25 and the credit screening costs $10, you can keep the $10 as income.

As long as the rents can cover both the current PITI and proposed P&I payment, credit is at least 680. you should be able to qualify. 

What is the compelling reason for them to pick you, with your competitive rates, over someone else they've already been using with competitive rates? 

It may help to lower your price during the slow winter months for a six-month lease, then bump the rate up in the summer when demand is higher.Zillow will tell you how long each listing has been on the market.

Quote from @Raymond Kalonji: In your opinion, what would be a reasonable minimum credit score?

Frequent hail storms pushing insurance rates up in that market. 

Applicant 1 has 509 credit score.