Determining Tenant Credibility
-
Upload
mark-teta -
Category
Real Estate
-
view
87 -
download
0
Transcript of Determining Tenant Credibility
![Page 1: Determining Tenant Credibility](https://reader031.fdocuments.net/reader031/viewer/2022030313/58a6ac611a28ab0a7a8b6461/html5/thumbnails/1.jpg)
MARK TETAPRESENTED BY:
DETERMINING TENANT CREDIBILITY
![Page 2: Determining Tenant Credibility](https://reader031.fdocuments.net/reader031/viewer/2022030313/58a6ac611a28ab0a7a8b6461/html5/thumbnails/2.jpg)
As a landlord, making a decision on the “worthiness” of a potential tenant can be difficult
The most important determinant is always the individual’s credit score.
But there are several additional factors that should be taken into consideration when making a decision on a tenant:
![Page 3: Determining Tenant Credibility](https://reader031.fdocuments.net/reader031/viewer/2022030313/58a6ac611a28ab0a7a8b6461/html5/thumbnails/3.jpg)
How old is your applicant?
FICO scores will vary based on the individual’s age
If your applicant is younger, they may not have a large enough credit history to produce a “higher” score
![Page 4: Determining Tenant Credibility](https://reader031.fdocuments.net/reader031/viewer/2022030313/58a6ac611a28ab0a7a8b6461/html5/thumbnails/4.jpg)
What Factors Impacted Their Score?
Make sure to take time the time to review the credit reports
You may be overlooking a great tenant because of factors that don’t concern your line of business
For Example: Credit Scores take a hit every time an inquiry takes place. This (generally) has nothing to do with whether the person pays their rent on time
![Page 5: Determining Tenant Credibility](https://reader031.fdocuments.net/reader031/viewer/2022030313/58a6ac611a28ab0a7a8b6461/html5/thumbnails/5.jpg)
What’s the possibility of getting a cosigner?
It’s possible to find a tenant that could be a good fit, but their credit score is not particularly strong
Ask for a cosigner on the lease
The cosigner can provide backup if rent payments are missed by the tenant
![Page 6: Determining Tenant Credibility](https://reader031.fdocuments.net/reader031/viewer/2022030313/58a6ac611a28ab0a7a8b6461/html5/thumbnails/6.jpg)
Additional Pro Tips:
If a cosigner cannot be acquired, you can suggest:
Month-to-month leasing
High(er) rent payments
Automatic payments