What Makes a Qualified Tenant?
When making decisions about a quality tenant on paper, look for applicants that have enough money to pay the rent, have good to excellent credit with minimal debt, and an impeccable rental history.
At the very minimum, applicants should combine to gross 2.5x the monthly rent; though, a gross of 3x or more is preferable. Depending on the situation, you may want to check the reserves and ensure that the applicants have enough to cover three months rent in case of emergency.
A good to excellent score (700+) is preferred, though depending on the area, a fair score (650+) may be acceptable. Digging deeper into the report to examine the number of lines, total amount of debt and monthly installment requirements, as well as if any delinquencies exist.
Verify the applicants’ rental history. Specifically look at their previous terms to see if there are any major discrepancies between what they were paying compared to what they will be and learn if they paid on time and were not a nuisance to their landlord and/or neighbors.
Contact 24 Hour Property Management, Inc.
We’ve helped hundreds of investors rent properties over the years and we’d love the opportunity to help you locate a qualified tenant. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.