Orange County Property Management: Tenants with Poor Credit Scores

One result of the nation's long economic downturn, coupled with often devastating fallout from the housing crisis, has been a steep decline in the credit scores of people who were formerly considered safe risks. As these folks struggle to get back on their feet in a somewhat difficult economy, landlords and Orange County property management experts have had to find additional ways to qualify applicants who meet all but the credit score criterion.

As a rule, an applicant with a history of recent evictions should be passed over; the risk is simply too high. A credit score below 600 is also something to be concerned about. The only way to qualify a person like that is if he has flying colors in every other area, namely, income, savings, employment history, and rental history. In a sign of how standards have been lowered to accommodate the new realities, a credit score of 640 is considered the new benchmark for reliability on many loan applications.

In parts of the nation hardest hit by foreclosures, a property owner's choice is either to rent to someone with a blemished credit record, or rent to no one at all. Given these uncertainties, landlords and managers may ask for double the usual deposit, which is usually enough to cover potential eviction costs and property damage. Bank statements showing the balances in checking and savings accounts are also commonly sought, along with a letter of verification from an employer. In other words, a credit score is just one indicator of a person's reliability; other factors must be weighed as well.

When all is said and done, here at First Team Property Managment in Orange County, we have the property owners best interests at hand, and strive to find a balance, using best practices with respect to economic trends to ensure reliable tenants occupy the properties we manage while also ensuring properties don't sit vacant too long.

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