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RE: Understanding Your Rental Applicant's Credit Report

in LeoFinance4 years ago

just because they don’t have a credit score does not mean that they would not be good tenants.

Like you said, I could see that in university towns and the like, that 90% of tenant applications would be from kids with no credit history.

Is this a risk that property owners talk about a lot? What's the general consensus around accepting a tenant with no history?

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It's definitely risk that ALL landlords should be concerned about - typically, we've found that newer landlords/property owners ready to pick up their first rental property are much more likely to take a risk like this - simply due to lack of experience, or that they haven't had a bad experience yet, and are willing to give someone a chance.

Seasoned property owners are typically more hesitant to accept this as they've been in the game long enough to know that it definitely increases their risk - and of course, risk aversion is a huge focus when building long-term investment properties and a sustainable business model.

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