Tenant screening criteria

[sdhiker]

Hello, I’m a new soon to be landlord and will begin screening tenants this week for our first townhouse rental. My question is how do I know where to set my screening criteria? Obviously I won’t rent to anyone with criminal or eviction history but where should I set my credit score threshold? Also how much income should they have? I’m told in order to avoid discrimination claims I must rent to the first applicant that meets my rental criteria but how do I know what my criteria is? Can anybody share with me how you make your decision who to rent to?

[Debbie]

Hello, I’m a new soon to be landlord and will begin screening tenants this week for our first townhouse rental. My question is how do I know where to set my screening criteria? You can create your own screening criterias (never, ever show it to potential tenants. You can write up criterias such as "no pets", "minimum job held at same company--1 year", "all adults, 18 years of age and above must fill out rental applications", etc., etc.,etc. Of course, you will treat everyone the same, no special treatment or circumstance. Periodically, you will find yourself adding more criterias. Your written criterias will help your case in court should any tenant or potential tenant accuses you of prejudice.

Obviously I won’t rent to anyone with criminal or eviction history but where should I set my credit score threshold? I would not worry so much about the credit score (aka FICO). Many people have high FICO score yet pay late while others have lower FICO score meet their payments on time. Some even have lower FICO score because of never having credit cards. So, forget about the FICO score and pay extra, extra attention to their credit report such as matching past addresses, employments, any and how many late pays, etc.

Also how much income should they have? 3x the rent. In other words, the rent is $500.00 per month. Tenant must meet that amount 3 times ($500 x 3= $1500.00 gross salary). Some landlords requires 2x or 2.5x the amount, depending on neighborhoods/locations.

I’m told in order to avoid discrimination claims I must rent to the first applicant that meets my rental criteria but how do I know what my criteria is? Can anybody share with me how you make your decision who to rent to?

Here's the link that can help you with the criterias: http://www.magicbullets.com/forum/showthread.php?t=6888&highlight=rental+criterias

BTW, welcome to the Magic Bullets Fambly! :SM086:

[sdhiker]

Thank you Debbie, thats a big help