Let’s talk about credit reports. I’m sure you’ve had an applicant look at their report and immediately say, “I can explain.”
They’re going through a bad divorce. An ex-boyfriend used their credit card. Someone signed a lease in their name. There always seems to be a story behind the repossession, the eviction, or the unpaid bills.
But if the report shows a pattern of unpaid debts, don’t convince yourself that you’ll be the exception. If they already owe money to a car lender, a former landlord, an insurance company, multiple cell phone providers, and the electric company, what makes you think you won’t be next?
Some people don’t take their credit obligations seriously. Owners sometimes say, “I’ll take a chance on them and charge a little more.” But if paying the minimum rent is already a problem, charging more is unlikely to make it easier for them to pay.
And if creditors are already pursuing garnishments, there may be less money left in the applicant’s paycheck to cover rent. Those creditors are already waiting to be repaid.
Quit thinking your property will be different. Review the report, verify the information, and apply your screening standards consistently. Don’t let a persuasive explanation talk you into ignoring a pattern that’s right in front of you.
In the long run, it can cost less to leave a unit vacant while you wait for a qualified tenant than to accept an applicant who can’t meet your standards, go through an eviction, repair the damage, turn the unit again, and hope you recover what you’re owed someday.