Rent to Tenants with Blemished Credit?

Rent to Tenants with Blemished Credit? by Sandy Shores Broker Associate

As a landlord, I am often asked the question…do I rent to tenants with a short sale, foreclosure or a bankruptcy?

And often times people are shocked at my response…

Every tenant should be looked at on an individual basis. What is the reason for the short sale, foreclosure or bankruptcy? Did they get caught up in the sub prime mortgage mess and their taxes, insurance and interest rate adjusted up? I know many people that were comfortable and able to pay their mortgage payments until their payments skyrocketed.
I have been a landlord since 1996. I have no problem with renting to tenants that have credit blemishes. The right ones make good long term tenants. What was their previous payment history on their last rental? How long have they been at their job? I know many good hard working people that go to work everyday, but they just don’t earn enough money to cover all of their expenses, every month. Or, some people just have poor spending habits. Often times they are unable to make their credit card payments. I am indifferent to that. The good ones understand they must pay their rent every month to keep a roof over their heads. Many of them make great long term tenants. I have had tenants that have rented from me for over 12 years. They pay their rent faithfully each month. They came to me with credit problems and they still have credit issues. But, they know that with their rent, they don’t pay, they don’t stay.
However, I will not consider an applicant that has been evicted or has a had a vehicle repossession. Once evicted, often times it’s a habitual problem. And if they have lost their vehicle, then how can they get to work, keep their job and make money to keep a roof over their head.
But be aware, in considering a new tenant, look at the entire picture. All is not always what it may seem. Be sure to pull credit, make sure all the pieces of the story fit, do a background check and if they are local, be sure to check the Brevard County Clerk’s website for arrest, traffic and eviction records.

Remember, a current landlord may not be your best source of information. If they have a difficult tenant, that is trashing their house and hasn’t paid the rent in 3 months, if they tell a prospective landlord these things, it’s unlikely the new landlord is going to rent to them. Why would they? That means the current landlord remains "stuck" with this terrible tenant. Current landlords are not always the most reliable source of information, so beware.

Do your homework and be aware that the right tenant can be an asset to you and your property.

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Melbourne FL Real Estate, Sandy Shores, Realtor

Sandy Shores Melbourne FL Realtor

Sandy Shores, Melbourne FL Broker-Associate

M & M Real Estate, Inc.

Residential, Investment and Relocations

We have a team of professionals to facilitate your Short Sale.

Melbourne Real Estate / Palm Bay Real Estate

321-253-4545 or 321-733-6080

SandyShoresMelbourne@hotmail.com

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Serving Brevard County Florida for 16 Years

Brevard County Resident for 37 Years

Melbourne, Palm Bay, Suntree, Viera, Rockledge,

Cocoa, Canaveral Groves, Merritt Island, Titusville, Mims,

Melbourne Beach, Indialantic, Indian Harbour Beach,

Satellite Beach, Cocoa Beach, Cape Canaveral

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I buy, sell, rent, own and manage Investment Property.

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