Credit Score discount?

While credit scores aren't the only indicator of a good renter, I've had many more bad experiences with calls for minor repairs, bounced checks, late payments, etc for renters with scores under 700.

Given that experience, I'm willing to discount my rent by $25 to $50 depending on the credit score of 750-800. Is this an issue legally? Can / should I advertise this to attract the tenants I'm looking for, or do I just open myself up to people wanting the discount without qualifying?

I'm thinking of a note at the bottom of the ad stating "Do you have a credit score over 750? Ask about our premium credit score discount!" --70.62.xxx.xxx

Credit Score discount? (by S ui d [MO]) Posted on: Jun 25, 2019 11:11 AM
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I think it would be legitimate just like any other discount, for military, seniors, etc. As long as you apply the standard fairly and it is based on a criteria that is not a protected group.

For example, you couldn't offer a "childless couple" discount.

I do not offer any other kind of discounts. I offer clean, safe, and functional housing and screen carefully. This seems to attract tenants who are pleased to pay fair market price and take care of the place under most circumstances. Frequent maintenance calls can be handled by properly training tenants in your expectations and procedures for how to properly report maintenance. I see no cause to give discounts for people acting like reasonable human beings, but if you think it will work then go for it! --173.20.xxx.xxx

Credit Score discount? (by David [MI]) Posted on: Jun 25, 2019 11:12 AM
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I started out seven years ago only requiring 500. Then after a few years, 600. Now I require 720. There is sufficient about of people with 720 score that want to rent in the areas where my houses are . There's simply no downside for me rejecting an "otherwise good" tenant with a low credit score. On the other hand, as you pointed out, the risks of getting a bad or plain difficult tenant are just too great

Banks do exactly what you are asking with every transaction. They give preferential rates and terms to people with excellent credit. So there's no problem legally with discriminating based on credit score.

You'll notice in a lot of lender ads, the fine print for the advertised payment or interest rate will say "requires tier 1 credit, blah blah blah." In other words, they advertise the *discounted* price, and make people who *don't* qualify pay a surcharge. --144.250.xx.xx

Credit Score discount? (by myob [GA]) Posted on: Jun 25, 2019 11:14 AM
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what's the upside of perfect tenant? The income possibilities of marginal applicants is so overlooked. The income generated by collections (if allowed in your state) is phenomenal. Another upside is filling the rental quickly since your no long waiting on Mr. and Mrs. perfect (who in reality could be dead beats) --99.103.xxx.xxx

Credit Score discount? (by David [MI]) Posted on: Jun 25, 2019 11:21 AM
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myob, I have no problem with tenants whose problem is SOLELY that they don't pay rent or pay it late and I rake in late fees. But you usually get a big helping of other problems from those kinds of tenants that as a LL i have to deal with.

In the lab areas of my office building, they have the sign that says "DAYS SINCE LAST ACCIDENT". Ive been toying of getting one for my home office that says "DAYS SINCE LAST EVICTION." --144.250.xx.xx

Credit Score discount? (by David [MI]) Posted on: Jun 25, 2019 11:23 AM
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As for "waiting for Mr and Mrs perfect," if I price my houses right, I can rent to them within a week or two, there are simply tons of them who are willing to live in this area.

Actually literally, Mr and Mrs perfect as all but two of the new tenants in the last year were couples with no kids, perfect credit. Two others were single men with no pets or kids, perfect credit. --144.250.xx.xx

Credit Score discount? (by myob [GA]) Posted on: Jun 25, 2019 12:09 PM
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David -- my gosh how do you make money? It sounds boring.

David hint-- anyone can lower their price to the point of Mr and Mrs perfect applying OF course they can.

I'm not in this to JUST make a living-- I've got 63 of these things--- I want to make a H U G E profit. Thats what I'm in business for. Positive cash flow-- big whoop! Positive monthly cash flow + 4 groups of last tenants from the same property paying collection account due to damages or missing rent $ (or 2 or even 1) ---- pyramids cash flow. Once you start collecting there is no maintenance calls-- no I can't pay rent this month-- only their boss taking $ from their paychecks. (For us)

HELPING OF OTHER PROBLEMS-- EQUALS TO HUGE BIG HUMONGOUS PROFITS. As said before if it was easy everyone would do it.

I do understand where you're coming from with your criteria I just don't see it as making the type living most just think about. --99.103.xxx.xxx

Credit Score discount? (by David [MI]) Posted on: Jun 25, 2019 12:16 PM
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Myob they're paying money they should have paid you to begin with, with a couple bucks of interest on top.

I charge $20per day of late fee, i still make some decent coin when tenants with excellent credit turn out to be late payers --174.230.xx.xxx

Credit Score discount? (by myob [GA]) Posted on: Jun 25, 2019 12:21 PM
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Margins that how. 15.00 for 1.00 light bulb-- 45. for a 8.00 dryer vent hose yada yada yada --- that's how +25% on debt.

But hey I'm not arguing with your success. Congrats on what your doing. --99.103.xxx.xxx

Credit Score discount? (by Landlord ofthe Flies [TX]) Posted on: Jun 25, 2019 1:45 PM
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Personally I think it's a waste of money. And yes, those with lower scores will feel entitled to it. You'll hear all sorts of sob stories how their score would have been 750 if they hadn't suffered all those bad things done to them. Also what happens to the 749 score guy? If you give into them, do the 740, 730, 720 tenants have a shot at it?

Those with higher credit scores will probably not appreciate the extra $25 to $50 per month as those with a lower score would. I remember offering a discount/rebate in another business. Most clients were either unaware, or it wasn't a factor in their decision. So I dropped it. Why pay if it isn't attracting any new business?

What if you added higher scale appliances or features that allowed you to raise the rent to appeal to the higher score crowd?

After all, those with higher credit scores can pay higher rent, and since they're sought after, they be choosy. --108.69.xxx.xxx

Credit Score discount? (by Homer [TX]) Posted on: Jun 25, 2019 3:22 PM
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I prefer lower score. Usually 600 ish. They tend to not complain as much, stay longer, because it’s hard to move on up with poor score. My people I have rented too with over 700 tend to only stay a year then buy a house. My leases go month to month after the first year and they usually stay on their toes to avoid getting a non renewal. To each his own. --75.141.xxx.xxx

Credit Score discount? (by Robert J [CA]) Posted on: Jun 25, 2019 3:36 PM
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I have several strategies on renting to applicants with low credit scores. If someone had a medical issue and they are in collections for that reason, I take it with a grain of salt. On the other hand when someone buys the latest iPhone and then rakes up a huge bill and instead of paying it off they let it go into default, collections and judgment -- this applicant isn't for me...

Depending on the quality of my rentals, A, B, or C, I adjust my requirements accordingly.

A Properties require above 720 FICO score.

B Properties require above 680

C Properties require a minimum of 650

Plus all of the rest of the stuff.. --47.156.xx.xx

Credit Score discount? (by razorback_tim [AR]) Posted on: Jun 25, 2019 4:06 PM
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I have found that those tenants with really good credit are usually more likely to complain about small things that really don't matter - sometimes even cosmetic things. My preference are those tenants who have past problems with their credit but who have a strong history of paying for a place to live. --107.77.xxx.xxx

Credit Score discount? (by Vee [OH]) Posted on: Jun 25, 2019 6:58 PM
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I think it wold be better to simply off a price when paid before the 1st and 100bux if paid after the first, this way you are not dancing with OH5321 or your local rental rules. --76.188.xxx.xx

Credit Score discount? (by pmh [TX]) Posted on: Jun 26, 2019 5:28 PM
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what will rent be if score goes down after they move in ? I think you are grasping at straws. perhaps instead of casting the net wider perhaps revise the criteria you already use & tighten up. --70.119.xxx.xxx

Credit Score discount? (by Ray-N-Pa [PA]) Posted on: Jun 30, 2019 9:43 PM
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I like how you answered that. My numbers might be an exact match - the method is the same --24.101.xxx.xx

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Credit Score discount?

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