Landlords use many different items in their rental standards, which are the criteria used to determine if an applicant will likely be a good tenant. One of those items may be credit score. But, the actual score or number that a landlord uses to approve or disapprove a tenant will differ. In fact, credit scores may not even be used at all.
Rental markets vary. The pool of applicants in a particular rental market will generally have characteristics that differ from the pool of applicants n another market. I am speaking here of items that affect someone’s ability to pay, stay and respect a landlord’s property. These items include things such as income amount, rental history and credit history.
Thus, a landlord in one particular rental market may have a credit score of 550 and up listed as one of their rental standards. While a landlord in another may not examine credit scores at all. This landlord may instead examine income amounts and work history.
Due to this variety in rental markets it is impossible to saw exactly what credit score number a landlord should use or even if it should be used at all. No matter what criteria you use to screen tenants, be sure to have them written down and available for any applicant to see. Doing so will help them determine if they should apply and may just keep you out of legal hot water.
Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors. Subscribe to Smarterlandlording here. Contact Kevin here.
