You can rent to anyone you like....I have rental properties and have rented to people who have declared bankruptcy. I check employment, call references, determine why they needed to declare bankruptcy...and make a decision based on that. If they have a solid job, if they have permanent family in the area, if they can comfortably afford the payment...then I've made that decision and been very happy.
Eviction is a long process and very specific, so not one you want to go through. So make sure you do your due diligence...but often someone out of BK has no other debt and is better able to weather a loss of job better than someone who is current, but just making minimum payments. So there are other considerations too.
We manage our own family properties as well as clients. First of all make sure that you have a completed signed rental application for anyone who is going to be residing at your rental who is over 18 years old. This application authorizes you to run a credit report as well as to check their iinformation.
I would suggest a full credit report as well as an eviction one.
I would also suggest asking the prospective tenant for the last 12"+" months of cancelled rental checks. this will give you a very good idea how they paid their previous landlord.
If you have any questions, please feel free to call me.
If you need copies of blank rental applications, you can go to our rental web site http://www.gteamrentals.com & get a copy.
Wishing you the best.
Jorge E. GosÃ¡lvez
Broker Associate, GRI, SRES | DRE: 00811940
INTERO Real Estate Services Serving Clients since 1981
10275 N. De Anza Blvd. | Cupertino, CA 95014
(408) 249-3718 Direct | (408) 904-5465 Fax
Jorge@BrokersForLife.com | http://www.BrokersForLife.com
Those FICO scores aren't awful and if you have verified his job and he's paying his other bills on time. Then.....I think you are doing all the right things to check this person's worthiness. Great job.
I am with Dan on this one. You can... Do you want to? I have met some great people that had hardship. Just confirm all facts, does he have a job? did you see the last 2 paystubs? How is his credit since then? Everything matters because it is your mortgage on the line if he doesn't pay you.
Just make an informed decision.
The reality is that once a tenant is in, it can be very difficult to get them out if they do not keep up with their responsibility of paying the rent.
Your decision should be based on information you can gather about their most recent financial experiences. Our recommendation is to ask for a rental history with contact information so you can at least verify this information and whether or not they left by their choice or by some other means.
As previously stated, it may also be beneficial to request a somewhat larger amount for the deposit money.
The Eckler Team
There are websites and online services that can run your tenants credit for you. Just be thorough and check out every perspective tenant thoroughly. Just Google "online tenant screening" and several possible companies will come up.
If it was me I would want to get a higher security deposit and just maybe charge a bit more each month unless the bankruptcy was based on medical costs (maybe unexpected layoff). I would definitely make sure as noted below that they were paying all of their bills on time since filing.