Landlord/Tenant law with multiple applicants & credit score question?

Question

We are in the process of renting a house out. Yesterday I accepted an application from two women who are friends and want to rent the house together.

Questions:
1) Am I legally required to accept applications from both of them? In other words, can a landlord decide to rent to only one party? I'm a bit wary of splittling the lease between the two of them because what if they have a falling out? However, I don't think I can deny them based on this because it could be considered discrimination based on familial status, correct?
2) They are using their fiances' incomes on the application to boost their monthly take-home. Should we consider this income since the fiances are not actually acting as co-applicants? I'm thinking no...
3) I haven't processed the application yet, but one of them said her credit score was 560. She said she's had a clean rental history at her apartment (which I'll verify, of course). What do you recommend as a cut-off no-go credit score?

Answer 1

1) You better rent to both of them or none of them because if you open that can of worms you could get into some legal trouble. You said you're a bit wary of splitting the lease because of a falling out, but what if they were hispanic--would you say that because you were wary that they couldn't afford the rent? That would be discrimination. If I wanted to rent an apartment with one of my friends who has a learning disability and having a hard time keeping a job because of this and you wanted to rent to only me--I would sue you. They will probably find a reason to drag you to small claims court so....
2) If I was a landlord and maybe future tenants put fake income on the application, I wouldn't rent to them. For one thing this is fraud and another if they can't pay you--it's your own fault! How do you know there really are finance's?
3) I know nothing about, but I have this sneaky suspician that knowing someone's credit score and discriminating because of it is going to become illegal. Right now, though, I would look into it.

Answer 2

You can rent to one party, but you are letting the other one off the hook. If both people sign the lease, then they are each responsible for the rent. If they split this covers you better than if you sign the lease with one and the other one leaves. If you were only going to rent to one, you should be sure that that person can pay the rent without help from the other. No, I would not consider the finces income unless they were signing the least. I don't know that I think credit score has much to do with it, if they have a good rental history. Some people pay their rent and other daily bills but still get in trouble with credit.

Answer 3

Credit score MUST be above 619......And, each tenant must sign a lease that makes them (individually) responsible for the entire month's rent. Do not split the rent on any lease.

You also should require PROOF of renter's insurance before giving keys to any tenants (this seems to keep the worst of the deadbeats away.

If these women don't qualify individually - don't rent to them. You are creating a scenario where you will end up on the losing end. Never count a "fiance's income" or third party's income to get a tenant qualified.

You aren't discriminating against them if you have the qualifications to rent in writing and apply it to all prospective tenants. (i.e. minimum credit score, income minimum's, local bank account at least six months old, and proof of id (soc sec card & D/L). and of course employment.

I'm a landlord and learned the hardway - my new tenant is a dream and just yesterday paid his Oct's rent (early!!)

A quality tenant is worth the wait and hassle. Believe me, go thru the hassle before they become tenants. If they become tenants - it's not a hassle, it's a nightmare!!!

Answer 4

1.) No of course not, and it's not part of the lease to decide what would happen if they split. After all, they would still be obligated to pay. If you're going to make "what-if" situations then you'll run in to a lot of problems. If they are applying together just accepting one of them wouldn't do any good regardless
2.) Any income they are siting you could request proof of, and since they would have no proof they are getting it you could technically say no. However, if it's all going into one joint bank account it would perhaps not matter, but it depends on how technical you want to get. You're probably safter not counting it, to be honest.
3.) General credit scores would say 590+ is something that could be approved. However, you might want to look at specifics like why is her credit low? How old are the problems? Was it was specific lender problem, or a string of issues? Basically factor in how likely it will be to effect you.

Answer 5

i would not recomend ANY cut off for the credit score. you can actually have excellent renters with NO credit histroy to speak of. call their last landlord and speak to him. get references. Based on the senario you stated here, I would not rent to these two. So far, they have lied on their app, by including someone elses income on the app, who IS not going to be on the lease. If they cannot get the house on thier own income, you are just asking for trouble with them. Pass em by and find someone else.

Answer 6

first of all i would only rent to one, that person would be responsable for rent. put in lease how many people can live there, only go by their income,

Answer 7

The standard is usually anything above 600 is okay. I'd deny them based on that.