Prospective tenant has 565 credit score with 900/month fast food job--accept or deny?


#1

Prospective tenant wants to bring a RV into my 40 space Texas park (I am ok with the RV being brought in the park) but they have a 565 credit score and a 900/month fast food job. Lot rent is 325/mo plus water and I am thinking I should probably deny this one due to income to rent ratio–Your thoughts?

Thank you,
Pat


#2

What are your screening qualifications. Your screening standards make the decision for you. If you are thinking of ignoring those standards you are making a mistake.
You are probably right thinking you should deny.


#3

@Pat1 I agree with @Greg how does he line up to your standards. Also, look at his credit report closely if you are having second thoughts and may be have him/them explain the issues you see and then make your decision from there. It is much more work that way, but at least you will get a feel for the person.
Good Luck


#4

That one is tight and at first glance I would deny.


#5

We do rent to be 3x income. So 975 and this would fall short of that. But over time, its very seldom that on a lot rent only deal the income comes close to qualifying like this . Its like a 325 lot and the income is 2k , maybe 3k . Is the person rolling solo or have another occupant? I mean depending on what min wage is in the area 9 an hour ( not sure ) then you have 40 hour week that would exceed that, or is this person only part time? And is there a background check that you are doing as well to have that in your consideration.

Also being sure accepting RVs is permissible for your park ( i wasnt sure by your post if that is or is not something you are already accepting) so just tossing it out there.


#6

@Pat1 , as per your post:

  • “Prospective tenant wants to bring a RV into my 40 space Texas park (I am ok with the RV being brought in the park) but they have a 565 credit score and a 900/month fast food job. Lot rent is 325/mo plus water and I am thinking I should probably deny this one due to income to rent ration-Your thoughts?”

Yes, you need to have defined Requirement Standards. If one of your Standards is a specific Credit Score, you need to verify that you are following the same Guide Lines for all Tenants.

For our Parks we focus on Evictions and Criminal Backgrounds.

Evictions show whether or not ‘Rent’ is a priority. Criminal Backgrounds give a glimpse into the Character of a Prospect (yes…people CAN change…however, the best indicator of future behavior is past behavior).

We wish you the very best!


#7

Hi Pat, I would have concerns on several levels with this. In the mobile home parks I own I cannot rent to RV’s so you may want to confirm you can legally rent to them per your state license and city requirements. Also keep in mind that this tenant can up and go at anytime with little or no notice to you.

My biggest concern however is the credit score. For my parks and rentals I see that credit score as “Golden”. If you told me I could have only one indicator of whether or not to rent to a prospective tenant it would be their credit score, hands down. That score tells you more about the persons character, ability and willingness to pay than any other data point. So, in the absence of a valid reason for the credit score of 565 (e.g., recent divorce, medical bills, etc.) I would reject them. You will likely save yourself some headaches down the road. 565 is a pretty low score.