[vc_row][vc_column][vc_single_image image=”3462″ img_size=”large” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Maybe you are an owner in a larger market, where finding applicants with good credit scores is not an issue; if you are that’s great and likely makes filling your units a bit easier. In smaller markets however, finding applicants with good scores can be a bit challenging, for that reason it’s often necessary to dig into the applicant’s credit report(s). A lower score should not always be reason for an automatic rejection, regardless of what your PM screening software tells you.
Take a look at the report and see what items are contributing to the score, are there medical bills that are in collections? This is a common issue and often has a reasonable explanation behind it – ask questions and find out what the issue is. Medical bills are the most forgivable of credit faux pas. Looking further, are there late payments reported? Look at the dates and then review current history, has the applicant gotten back on track and have they been doing well for the last 6 months? Maybe there was a change in jobs or circumstances that led to a dip, but now they are working towards improvement, again forgivable in many cases.
Other slips are more concerning, unpaid utility bills are cause for pause, especially since they may impact the ability to establish accounts once the applicant is approved. I would ask the applicant about the utility collection to confirm the account is theirs and then request proof of payment prior to proceeding with additional screening. Look for judgements from other property owners, unpaid cell phone bills, as well as last names and addresses on the report that were not included on the rental application – these are big red flags.
It’s certainly easier to have a flat score requirement i.e. 700, but unfortunately this one size fits all approach does not work in all markets. Property Owners/Managers must look at the whole picture when considering an applicant. Taking a few extra steps can help to keep you from overlooking potentially good applicants who experienced a temporary setback. Being the landlord who helps a resident build a good rental history is also good karma in the bank. [/vc_column_text][/vc_column][/vc_row]
