<p>Tempemom,</p>
<p>I am not sure if 740 is a “good” score. In Trans Union, the scale is from 1 to 1000, 740 is below 50% average. In Experian and equifax the scale is 800 so 740 is a good score</p>
<p>Don’t ask the current landlord - they may have a vested interested in getting ride of these tenants. (not saying that’s the case) Ask the landlord prior to the current one. They have nothing to lose by telling the truth.</p>
<p>Art, before you post you received the reference from the landlord, I would say no way because I had bad experience with people with bad credit. The first year the tenant was ok, but the last year they left a mess, but it was also a starter house, attracted a different kind of people. Since this bad experience, I’ve only rent to people with good credit and good job, I have never had a problem for 10+ years, no empty house either. I rent to mostly executive who moved to the area and waiting to buy or they don’t plan to buy so they rent or they are temporary job. Would you want to do month to month renting if you were not 100% sure?</p>
<p>dietz, that is some times difficult to do, because they own a house prior to leasing. prior to the bankruptcy, they sold the house to settle some of the debt and moved into rentals.</p>
<p>I actually had a long discussions with both the husband and wife at their current location today. They did not trash the place even it will be demolished in a month. They paid the rent on time for 4 years and it is a higher rent than what is proposed to me. During the discussion, we went into the details of their high tech business and their faltered venture. I am pretty sure they will be able to afford the rent. In addition to salary of $240k, there are bonuses.</p>
<p>DrG, To me, a year lease or MTM really does not matter that much, the process to evict some one after 30 days occupancy in CA is the same, you need first give 3 and 60 day notices and then file UD lawsuit in court and if they contested, you have a long fight before they can be evicted by the Sheriff. The total process from beginning to the end takes 4 months at the minimum. The cost is around $4000 if you have to go all nine yards, more if bankruptcy is filed. Of course, you will lost 4 months of the rent.</p>
<p>I don’t want to go that route ever again, if I can avoid it.</p>
<p>You may want to check with California and SF housing rules. </p>
<p>IIRC there are strict rules about under what conditions you can turn someone down…especially if they are meeting or exceeding your asking price and aren’t negotiating on things they want (ie they want pets but you said in ad no pets). </p>
<p>I think bad credit is a good excuse to deny housing because it costs $$$$ to evict someone and if there is damage it can cost more $$$$. I don’t think there is any rule to say you have to loose $$$$, IMO.</p>
<p>Art, my sister has a rental and the guy was unemployed at the time, he paid the whole year ahead in cash. She has a management company to manage her property, so I assume they must know the law, anyway that was a while back(10 years ago), maybe the law has since changed.</p>
<p>You cannot discriminate race, creed or religion. You can deny housing by job, pets, financial or credit rating.</p>
<p>Her business failed, which sometimes just can’t be prevented and doesn’t reflect on her values or responsibility. In this economy, many of us with great values and honesty end up bankrupt. My E & E credit ratings were in the 770’s on the day we filed, after some tragic events. </p>
<p>These could be very good tenants.</p>
<p>How much more is THIS rent than their current rent?</p>
<p>Their current rent is MORE than the proposed rent.</p>
<p>Their CURRENT rented house is worth about $1 million MORE than my house, without rebuild.</p>
<p>You turned them down for a reason. I don’t think an extra $300 per month is worth the risk. Go with your gut feeling. </p>
<p>It seems like you are skittish from your previous tenant who you had to evict. What kind of job and personality and credit did that person have?
To me, someone who has owned a home previously will treat a rented home similar to their owned home. This is a big difference between buyers and renters and your prospective tenants fall in the buyers category. Also the tenants kept their previous home clean and paid on time. The previous landlord doesn’t have any reasons to lie to you because the tenants are being forced out by the landlord. They stayed 4 years with no problems so they are the type that prefer to stay put ?again like home buyers). The rent on your place is lower which gives them more improved monthly cash flow.The man’s income is solid. What is the man’s credit rating? Sounds like they are high consumers if they needed to sell the house to pay off debts.</p>
<p>I think that the risk is on the lower side but you are getting influenced by your recent bad experience.</p>
<p>I am with you, Yoho. The bankruptcy they had was a three million debt because of business failure, not a strategic default because the home value is under the water. I am sure at the time of their bankruptcy, the credit rating must be tanked to grade F, now they are standing at grade C.</p>