I feel like have a good handle on evaluating people with income when it comes to approving them for a house. But retired people don't have incomes (usually). In the case I am thinking of, they both have social security which does not meet the 3x month gross level. However they have plenty of money in savings (over 400K). Credit report shows no credit score because they both have no debt and only have 1 credit card each which does not have a balance.

Seem like responsible people but fall outside by normal screening criteria.

How do you evaluate seniors with regard to your screening criteria?

Describe "senior." How old are they actually?

We've found Seniors - 70+ - to be great tenants on the whole. They pay their bills, don't go on spending sprees and in fact often rent because owning a home was too much for them. But it tends to depend on what they USED to do. We've had retired teachers, Coast Guard, others who were good.

You need to have some flexibility when dealing with "Cash" over "Credit" spenders AND Responsible savers over people who live from paycheck to paycheck.

I will accept tenants with no credit score caused by never using credit. If there is no score, it means they don't owe money to anyone.

However, you must be absolutely certain that you are getting the real identity of the applicants and, for myself, I don't accept undocumented aliens, which is another reason to show up with no credit score.

There are all sorts of grant letters that come with social security. There are bank statements to show savings accounts. All of that money can be verified.

SS is not garnishable, but I don't worry about that as long as the applicant has a good solid history of paying their rent and expenses. They are unlikely to pay rent every month for 60 years and then wake up one morning deciding they won't pay rent any longer. And again, triple verify identity and the identity of the landlord who is giving them a reference.

A home inspection would be a very good idea for these applicants.

Bonanza Dude,

Regarding your question, I think we need to separate "retired with good income" from "living SSI check to SSI check".

I still stick to GARNISHABLE W2 income.

Things happen, the spouse heads into a major illness or dies, divorce...leaving the LL without rent and we cannot tap into that $400k bank account.

We WILL consider SSI and pension as secondary income if the other adult has w2 income to cover almost all the rent.

Or have them pay a year in advance.

And remember rents are increasing but pensions probably not.

I may be missing some good applicants but the chance of being burned again by "nice retired people" is not worth the risk.

Our new economy might change my mind.

The problem we're having is regular w2 residents who "age" and retire or go on disability.

I am retired, 71 yrs. old. I am on SSI and receive income from school retirement. Same with my husband.

I have one credit card which I pay off every month. I have it because I do not like carrying to much cash. I could not tell you what my credit score is, nor do I care as I have never looked. Same with my husband. We pay our bills each and every month.

Some retired older couples can no longer or do not want to care for their home or property. I have talked to many and this is when they decide to sell their homes and rent. To not have the responsibility.

We normally reside in Arizona each winter but not last winter or this winter as it is safer to stay home, but while living at the RV park we discussed this subject with many seniors.

Normal screening criteria? Seniors do not fall in that category as we are not normal, not in this day and age of lazy non working younger government paycheck generation of people. Honesty, integrity, compassion seems to be a thing of the past with them.

I believe you have some older seniors that have actually told you the truth and it is hard for you to accept that. I would rent to them in a minute.

I would quess, (I do not know for sure) that they have no credit score because they do not own anything other than a paid off vehicle. These older retired people probably sold their home and that may be where the 400k came from, which is in savings, and easily accessible, to pay rent, etc. if needed.

As stated: Credit report shows no credit score because they both have no debt and only have 1 credit card each which does not have a balance.

I would certainly discuss your concerns with both of them. As Robert stated: You need to have some flexibility when dealing with "Cash" over "Credit" spenders AND Responsible savers over people who live from paycheck to paycheck. I agree with him on this issue.

They are my dream tenant although I've never had a tenant with much more than $4,000, let alone $400,000, in the bank.

Not garnishable? Attach that bank account and get paid in full rather than a paltry $xx week from a pay check from a job they probably will quit when garnished.

If that $400,000 is in an IRA or such I don't know that it can be attached.

Also MY judge said he is reluctant to even CONSDIER an attachment order. He has never done it in 16 years of evictions an collection cases.

We've also run into problems where they could not get the money out of the account for various timing problems, etc.

Seniors on SSI are usually great people but when they run into financials troubles *I* get left in the lurch.

Maybe double deposit?

If the moratoriums continue or are reinstated they won't need to pay or catch up.

BRAD

Sisco is right.

wayde, $400,000 did not come from social security.