Austin, TX Property Management and Unqualified Applicants

Even the most experienced Austin, TX property management professionals go through a period when they have a slew of unqualified applicants come through their doors. By "unqualified" we're referring to prospective renters who have poor credit reports. Or, in some situations, these applicants may not have a credit score at all. While some property managers in Austin, TX don't pay much attention to credit scores, a score of zero should raise some concern.

Why should Austin property managers be concerned if an applicant has a zero for a credit score? Doesn't that just mean they haven't built up their credit yet? Not necessarily, this can be a big indicator that you have another unqualified applicant on your hands. Sometimes a credit score of "0" means that they haven't made any payments on their open accounts for more than six months, they may be facing bankruptcy or a number of other things. So, what can Austin, TX property management professionals do about unqualified applicants?

The first thing you should do if you have an applicant with a bad credit score is call them up and confront them about the issue. Ask them why they think their credit score is so low. You may find that they are going through a messy divorce, which can sometimes lower credit scores when there are joint debts that need to be sorted out. Or, the applicant may have missed a few payments due to a recent job loss. Whatever the reason is, make sure you give the applicant the opportunity to explain it to you, many people providing property management in Austin don't and miss out on good tenants as a result.

Next, require that the applicant provides you with proof of employment. Most of the time, all that this will entail is that the applicant gives you a phone number where you can reach his/her employer at. Or, you may require a written letter verifying employment to put in the file. Requiring proof of employment for unqualified applicants is vital to make sure they have a steady income and can pay their rent.

Additionally, many Austin, TX property management firms will ask applicants with low credit scores to provide them with two or three months of bank statements to ensure they do have a steady income. This is just another thing that will help you determine if this tenant is worth going out on a limb for. If you are uneasy about the situation, you can always hold out until you come across a tenant with a better credit score.