It is no surprise that in low-income neighborhoods, you may encounter a greater probability of eviction and a longer time spans in vacancies. These two caveats are inversely correlated. You will normally have a greater probability of evictions if you’re less selective in the tenant screening process however you may fill up your rental units faster. In addition, you may experience a longer time span of vacancies due to being more selective in your tenant screening process.
A key element to keep in mind is that the majority of your tenants will have past credit problems, an eviction, low income or minimum wage, a single parent struggling financially, and possibly felons that will have a hard time finding a job should they get fired or laid off or quit. Of all the applicants you may find approximately 15% will pass your screening process and be worthy tenants. You’re basically competing for the top 15% tenant pool and so you’ll want your rental unit to stand out to help procure them. Something that will tell give you an advantage such as a fresh paint job.
My screening process is no past evictions a monthly gross household income of three times the rent amount, no past felonies on their record, two people per room occupancy limit, no pets allowed, and a cherry on top would be if they have a credit score of 620 or better. At times you’ll come to realize that no one is passing your screen test so you might become anxious and start being more flexible. When this occurs I may be flexible with the past eviction so long as it’s been at least 5 years or longer since the last eviction.
However, there are some things that should not be bent too much such as monthly gross income. A low monthly gross income will indicate whether that person can pay or not the rent.
