I did this years ago and it helped me big time. At this point, it might’ve been many years ago. With all the changes that I keep reading here and the shift in criteria, I’d like you folks to dissect my minimum criteria list and give me he// about it. I’m not against starting back at Ground Zero for screening with the shift in prospective tenants I’ve been experiencing the last 2-3 years. Disclaimer, I just added the part about the cosigner & debt forgiveness. I’ve never taken them before, but I might need to now. I’m going to add this into my digital application and make sure that they at least click on it in order to proceed, that way they are aware of it. I never gave out this information in the past, but I think I might, at this point. I think the longer and wordier that I make it, the less likely they’re going to read it. Anyway, Here you go, have it:

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Minimum screening criteria

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ÿIn order to pass an application, an applicant must have the folkowing minimum screening criteria. This list includes, but is not limited to:

Credit score above 675 required.

Credit between 640 & 674 requires first month’s rent, last month’s rent & security deposit.

No collections, negative trades or judgements.

If only one collection of $500 or less and older than 5 years is found, applicant qualifies for our credit forgiveness program.

Credit forgiveness is available for a one time fee of $250 @ lease signing.

Applicant understands that the property, owner, property manager, and/or lessor is not legally allowed to discuss specifics of the credit report with the applicant.

No aggressive dog breeds.

All employed income earning applicatants must have 6 months steady employment at current employer.

Employment between 4-6 months requires a co-signer.

Self-employed and independent contractors must produce two years of tax returns.

Cosigners must meet all the same screening criteria and must live in and own their primary residence in Pennsylvania.

Initial application must have 3x rent in verifiable garnishable income. 

Additional applications must have 1.5x rent in verifiable/garnishable income.

D to I ration cannot exceed more than 50% of gross income.

No evictions.

No civil judgements.

No crime against persons or property.

How about:

Must show (bank statement) they have move-in $$ available NOW

With a quick eval:

if C class tenants or low B...

I'd make it a bit simpler.

I'd lower credit score to 600, and take out all the other stuff related to cred.

I'd change no crime to no felonies in past 3 years.

I'd remove: All employed income earning applicatants must have 6 months steady employment at current employer. (you could have a great applicant...with great credit and employment...with a recently employed spouse...)

We have had a lot of transplants here and more to come, so it might be difficult to get the 6 month or greater employment.

Every single inquiry that I have gotten has horrible credit. I think it is the new norm.

I would lower the credit score to 600 for B- and below properties. Most people approaching 700 are going to be homeowners not renters in this class of housing. You state 675 is required but then lower it to 640 in the next sentence, what is the minimum 675 or 640? The way it's worded may be confusing some people.

The only collections I specifically care about is landlords and utilities (won't be able to get them switched if outstanding balance). It seems like almost everyone has collections for cell phone companies, medical, and cable/dish. I often find that there are still collections from a few years ago and none more recently. You are probably losing a lot of reasonably descent candidates excluding all collections. That said, if there are more than a couple of collections in the last 2 years or they are consistently in the 90 days late on their revolving balances then that is a problem and I disqualify.

Consider making it a combined income of 3X rent (garnishable). In today's world there often isn't one breadwinner, it's two people with a low to descent wage. If they do split up, there is a good chance you are going to end up with the 1.5X person staying instead of the 3X person so it really doesn't help to require one person to have a great job.

Length of employment is one of those things I will raise the deposit for. I won't take unless they have been on the job for 3 months, there's still a good chance they will get canned until they hit that point. If it's 3 months to 1 year I will double the deposit to compensate for the risk. I don't do co-signers, it just makes it more complex if I have to evict and they are on the lease.

Ok. Now we’re getting somewhere. #1. No, I don’t advertise this criteria anywhere. Never have. Did know if it would be worth showing it or not. #2. The credit forgiveness idea is brand new and I have never had that as my criteria before. I just put that on here last night when I made this post because of what I’ve been reading on here lately with making more flexible options people. That’s an easy one to get rid of. Numbers, I miss typed when I put six months with the current employer. I don’t care if they are at two months with their current employer, and two years with their private employer, as long as there isn’t downtime of several months. The week or two is fine. I’m not against dropping the credit score for class C buildings, but I don’t know how much of a pain it would be to have separate criteria is running for different buildings. Ken, I’ve always required the additional occupant to have some skin in the game via income. Think and I can’t prove this, that it has kept out the couch surfing, Bros, and the deadbeat girlfriends, who just sit around and watch drama TV all day. I don’t apply this to married couples. The cosigner thing is also brand new. I put that in here last night after reading some of the changes that people are making. I could easily take that one out as well.

Mike, my credit score is 675 for a straight rent and deposit. 640 and up is a double deposit.

I wouldn’t consider a FICO score. Look for collections, late pays and judgements. I require pdf of bank statements, you will get a clear picture of the applicant financial situation and employment by looking at a bank statement.

#1 Don't care about credit score. I care about who they owe. Student loans (for the most part) and medical (usually) ok, utilities and major credit cards, etc. are not.

Don't care about time on job: most people move here so all have new jobs. There are two exceptions (actual companies) where they have to be there at least a year, but otherwise, time on job is not important. Income is.

No non-neutered, non-spayed animals. No puppies. No exotics.

Don't do co-signers (no garnishment in NC so it's just a distraction and makes everything more difficult.)

No evictions ever.

Have they had an SD withheld? Why? If it was property damage, no.

No violent crimes ever.

If I had all of your minimum requirements, I would not have any Class C tenants or like you I would be waiting a long time with an extended vacancy.

Hypothetically -

Pick up the ball and run with it or a Hail Mary pass

deep and long.

These "New League Players" are brutal and half crazy,

and that's putting it politely.

I'm agreeing with Roy.... these standards are high, but probably too high for most renters. That helps explain why your vacancies are taking forever to fill. 3 years ago, those were probably fine, but in today's market those kinds of folks are buying houses or will be shortly.

Brad 20K has posted frequently about how people are maxed out and struggling. True statement. So our goal is to HELP them get in via a method that moderates risk acceptably for us.

I do like your first, last and security deposit. I'd take that from anyone, regardless of how terrible their credit score is, unless they also have unpaid utility / phone bills, or if their DTI was too high. I have to have utilities on and a way to reach them. Typical credit scores I get range from 500 - 625. Co-signer or double security required.

My favorite type of tenant is one with a couple of minor dings from a year or two ago on their credit, because they probably won't be buying a house tomorrow. I don't care about the score, but as a matter of general interest they seem to land in the 550 - 625 range. Nothing terrible, but nothing great either. They'll be staying for 2-3 years which is perfect. As I've posted before, I like turns about every 2-3 years so damages to the property don't get written off as "normal wear and tear" simply due to how long ago they happened. Damage is damage.

Now I agree with Roy AND Sid. :)

I have SFH's that range from C- to B+. So, I have two sets of applicant standards, one for C's and one for B's. The checklist for C has a lower credit score and allows more dings on the collections. I go down to 580 which by definition is considered "fair" credit on the C properties.

Tenant criteria is is really no different than managing different properties differently. The C's get clean and functional but applicants for the B properties have a higher expectation of updated so there is a higher standard. For example, I will replace a cast marble bathroom sink with surface spalding or cigarette burns on a B property but not on a C.

Your minimum credit score of 675 would DQ 98% of all prospects and applicants that I get. I do draw the line at a min of 500 but I have never put a lot of weight on credit scores anyhow. Besides, some of my best tenants right now had credit scores in the low 500's and I rented to them because they had good paying jobs and put a lot of value on keeping roof over children's heads.

I am not going to list my minimum standards here because I don't want to get dragged through the mud over it.

"I am not going to list my minimum standards here because I don't want to get dragged through the mud over it."

Roy, where is your sense of adventure? LOL!!!

Not a critique, but regarding the crimes I have a different take.

I used to have only felonies listed. But then I saw people who obviously got a lawyer to plead things down.

So then I added misdemeanors and/or felonies regarding hard drugs, violence, etc.

Then I had a guy apply that had pending DV charges. He had been getting the case continued for a couple years. DV, DV in front of a minor, etc.

Sisco, there really isn’t anything for them to get confused with. They don’t see this criteria, only I do.

These standards may be high today, but they are developed 100% from this forum and worked fine up until 2-3 years ago.

Roy, I’m not interested in housing their children and if your methods are illegals, that’s not really of any help. After all, I am interested in keeping a roof over my children’s head.

NE,

Too much, too confusing. Keep this for office use only.

I am keeping my 19 point checklist so I KNOW what negatives they have and in this climate, we can make a judgment call on minor issues such as time on job, medical bills, recent BK, MJ possession, evicted due to her badboy BF...

Like MikeA I just give 6 general items. Mine are not on the ad but on the top of the application. If I saw your list in an ad I would swipe away thinking "Too controlling - impossible to please".

Your list takes a higher level of financial intelligence, beyond what most renters can comprehend. My list does not slow down bad applications.

(So you will pay off all my debts for $250!!)

Yes, app fees are an additional source of income to pay for our efforts. "Find what people want and let them pay you for it."

The business of housing includes dialogue with people who WANT to try for one of ours. "Everyone is welcome to apply".

Sometimes we can work around their issues.

DO NOT give away your time for free. It only takes moments to deny most - who are not surprised they were denied!. We check free court records and pay stubs first, eliminates most in minutes.

Ads need to be inviting. Zillow only shows a few phrases unless they click for more. Most don't.

Today's renters expect upbeat and welcoming. Old school barking rules is a turnoff.

My app:

Before you apply, here are some basic criteria we use to screen your application.

No more than 2 persons per bedroom, 2 animals per house.

Misrepresenting service animals is a crime punishable by $5,000 fine and/or jail time.

All persons age 18+ who will be living in the home must submit a signed application. Each application can have 2 persons.

Pay stubs showing gross combined W-2 income, before taxes, of 3x the rent. Example: $500 rent requires $1500 income per month or more.

No evictions in the past 5 years

No violent, drug, or dangerous crime convictions in the past 10 years.

Not on the Sex Offender registry.

The $25 non-refundable processing fee must be paid with credit card, debit card and most payroll cards or by PayPal to begin processing.

Payment of the application fee and submission of an application does not guarantee approval and subsequent signing of a lease.

2 adults can be listed on a single application and pay 1 application fee.

Additional adults will need to complete additional applications and fees.

BRAD

Lighten up on the credit score.

No collections, negative trades or judgements. Would you elaborate?

I think you’re looking for perfect. Someone who could buy a house.

I like bank statements, tax return if self employed, in home inspections, and must be collectible.

Here's the thing... a person can have 1 thing that is bad...if they really make it up big time on all others.

.ie- slightly poor credit...BUT they have good income, same job for three years, no evictions and they are willing to pay double deposit.

or-

a felony from five years ago......but good credit, good income, good job, no evictions...etc.

Hard to completely disqualify on (1) item if ALL the others are good...

That's why my prequalifying form is "scored" with different items having different weights.

Ned, good point. I put heavier weight on criteria that is, in my order of importance. I have a few that I've read on this forum before, I.E., Can they follow instructions, attitude, cooperation, respect, etc.

My last criteria is "what does my intuition tell me? Someone on paper looks good, checks out (or seems to), but something's off; it doesn't feel right. I will definitely deny whether I have another applicant or not. Every time I've ignored my intuition I've regretted it, so it stays on my list.

NE (PA) You've gotten good feedback on your criteria. What will you do with it?

If a couple is legally married, the money is community property, at least in any state I've ever lived in. If he works and she doesn't, they both still have income.

If they are not married and he works and she doesn't, he has income and she doesn't.

I've never required a specific credit score. I tell applicants when they ask "I'm looking to see you pay your bills, and pay them on time". Sometimes they screen themselves out over that remark. That's OK!

We use HOUSEHOLD INCOME.

We increased from 3X to 3.5X. Considering 4X.

I will not reduce that because it's based on folks have the rest for living expenses - which we all know have increased greatly in the last few years. It's designed to allow them to eat and be able to drive to work.

We DO make an exception allowing a larger percentage toward rent for singles with no children to support. Or a little old lady on SSI with no car.

BRAD

Just every one of my places have different minimum credit score. I look for my target and niche to help determine what that score will be.

If this is a C- place, I will look at someone with a 600 credit score if I didn't upgrade the place yet. As soon as I start dumping money into the place, that score edges upward.

Fair housing will allow you to do this as long as you apply the same standards evenly to all people. Fair housing doesn't apply to the structure itself. So if you feel good with those credit score standards based on your investment, then its all good. I do allow for co-signer during the slow season if someone doesn't have the credit. That is how I work with someone. But I make it 100% clear, that cosigner has to have real estate in the general area in my own state. Then I make sure the co-signer understands that a judgement will be filed against that property so one way or another, I will get paid.

Jeffrey, if a couple comes in for an application do you have them fill out individual apps or do your apps have space for two people?

I was considering changing my application to be for a single person. That way I can maybe get more information on there.

NE, I have kept track of the credit scores of the people I have rented to over the last 25+ years. I have found that those with a 600+ score are usually the best but that those as low as 550 have also been good.

As a result, I have the criteria that those with a credit score of 550 to 599 have to pay a double deposit, whereas I usually only require a single deposit for those with a 600+ credit score. Those with a credit score of approximately 675+ have been the best tenants.

Other than for deposits, I don't pay as much attention to their credit scores. I pay the most attention to the amount of debts, the type of debts, and their recent payment history.

Also of great important is their landlord references, especially from their previous landlord more than their current landlord.

Gene, until the government says you can only collect one month security deposit. No matter what. Like it is in NYS and CA.

Gene, I found the magic number in a class C apartment to be about 580 where about 80% of the time they complete that year. If it is a class C house, I typically add another 20 points as my standard. If I put a significant amount of money into over hauling the place, I might even add 40 points to it and make it a 620 on a class C house.