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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: MoneyGoal on April 28, 2019, 05:02:45 AM

Title: Renter
Post by: MoneyGoal on April 28, 2019, 05:02:45 AM
What are your thoughts? Yes, no?

Salary for both of them: $220k

Looks good, but then I got credit reports:
Credit scores for both couple is about 650 each
Credit card revolving debt: 90K for both of them - main concern

Minimum daily balance in bank account accounts: about 6 - 10k

Rent is $3200, which is about the same rent as prior place. Reason for moving is because want a bigger place.
Checked rental reference, never missed payment


Title: Re: Renter
Post by: SunnyDays on April 28, 2019, 08:06:08 PM
How long were they at the previous place?  If they could pay that amount of rent consistently for at least a year, that would be a good sign.  How long have they been in the current jobs at that salary?  Are they stable jobs?  If so and they've been there at least a few years, I'd be less concerned about their debt as long as there are no missed payments.  At their salaries, they could technically afford your rent, so if there are no other red flags, I can't see why not.
Title: Re: Renter
Post by: Villanelle on April 28, 2019, 08:11:50 PM
How long has your place been listed?  What's the rental market like in your area?  Have you had other signs of interest?

I'm skeptical about talking to a previous landlord.  They could be lying or misleading to get rid of a bad tenant.  Depending on the circumstances, it could even be a BFF you are talking to, not a landlord.  So a reference, while not meaning nothing, doesn't mean terribly much to me.
Title: Re: Renter
Post by: YttriumNitrate on April 29, 2019, 11:49:09 AM
I'd probably rent to them. Their minimum credit card payment is probably around $3,000 a month, and rent is about that too. That leaves a lot of wiggle room with a combined salary of $18,000 a month.

Also, to verify that you are talking to the actual landlord, I recommend checking the assessor records as to who owns the property they were previously renting.
Title: Re: Renter
Post by: Papa bear on May 02, 2019, 09:43:24 PM
You need to verify ability to pay and willingness to pay. 

Ability is based on income, assets, and other debt.  Youíve done this, looks good.

Willingness is based off of credit scores, credit report, and prior rental history.

You have a less than desirable credit score, probably no bankruptcies or evictions, but, from the sound of it, a good rental reference.  Though, as another poster had commented, make sure it is actually the landlord you spoke with. You may even ask to see their current rental to get an idea how it looks, too.

From what youíve told us, looks like they would be reasonable tenants.


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Title: Re: Renter
Post by: tralfamadorian on May 03, 2019, 08:42:22 AM
I wouldn't be too concerned about the cc debt on its own since the rent is only ~17.5% of monthly income. If their rent/income was closer to max 33%, it would be a disqualifier. I would ask for the landlord before the current reference and see if it's as good as the current one.
Title: Re: Renter
Post by: Mother Fussbudget on May 03, 2019, 09:28:12 AM
Another way to verify the landlord is to have someone who hasnít spoken to them call and express interest in renting their unit (the one these tenants are leaving).  The real landlord will love to speak to them, or say the place is already rented, or something similar.  A BFF will not have a place for rent, and youíll know what you need to know
Title: Re: Renter
Post by: theoverlook on May 09, 2019, 06:35:21 AM
Totally off topic, but can you imagine living like this? $220k in salaries and they still run up credit card debt. And are getting a bigger place despite still carrying that debt. Wtf.