22 November 2010
A: Proper tenant screening involves looking at past credit history, tenancy history and determining the prospect’s ability to perform under the terms of the proposed lease agreement. A foreclosure on a prospective tenant’s credit report isn’t necessarily an automatic reason for denial.
Many individuals purchased property over the past eight years that clearly were not financially qualified to maintain and own real property. If the prospect handled the rest of his credit well, no other delinquencies, no collection accounts, and no evictions, and he has sufficient net income to pay the rent, then he might make a very good long-term tenant. He certainly won’t be buying any time soon.
If on the other hand, he has a pattern of delinquencies, several consumer collection accounts and non-verifiable income, then keep looking.