“Their credit score is only 580, but they have a good explanation.”
“The background check shows an old charge from 10 years ago — should I decline?” “Their references all say great things, so I’m approving them.”
Here’s the problem:
Most landlords either rely too heavily on the wrong criteria, or ignore critical red flags because they don’t know what they’re looking at.
After 19 years managing 250 properties in the Lansing area, I’ve seen every combination of credit scores, background checks, and references you can imagine. Here’s what I’ve learned:
- A 750 credit score doesn’t guarantee they’ll pay rent on time
- A 580 credit score doesn’t automatically disqualify someone
- A clean background check means nothing if income is insufficient
- Glowing references can be completely fabricated
The truth: These three criteria matter, but only when you know what to look for, how to verify, and how to weigh them against income (which is still #1).
In this post, I’ll show you exactly what matters in background checks, credit scores, and references — and what’s just noise.
The Hierarchy: What Matters Most
Before we dive into each criterion, let’s establish the hierarchy.
After screening thousands of applicants over 19 years, here’s the order of importance:
- Income (3x Rent Rule) — 50% Weight
Why it’s #1: If they can’t afford the rent, nothing else matters. Reality: A tenant with perfect credit, clean background, and great references will still fail if rent is 50% of their income.
Our standard: 3x monthly rent minimum, verified income only.
- Rental History — 25% Weight
Why it’s #2: Past behavior predicts future behavior.
Reality: How they treated previous properties and landlords is the best indicator of how they’ll treat yours.
Our standard: Contact previous landlords (not current), verify payment history, ask “Would you rent to them again?”
- Background Check — 15% Weight
Why it’s #3: Safety and legal liability matter, but most criminal history is old or irrelevant.
Reality: A 10-year-old misdemeanor matters less than a recent eviction.
Our standard: No violent crimes, no sex offenses, no drug manufacturing, case-bycase for everything else.
- Credit Score — 10% Weight
Why it’s #4: Credit shows willingness to pay debts, but doesn’t predict rent payment as well as income and rental history.
Reality: Someone with 580 credit and 4x rent income is a better bet than someone with 750 credit and 2.5x rent income.
Our standard: 600+ preferred, but we’ll accept 550-600 with explanation and strong income.
The bottom line: Income is 5x more important than credit score. Rental history is 2.5x more important than background checks. Most landlords get this backwards. They decline a great applicant because of a 580 credit score, then approve a terrible applicant because they have 720 credit.
Don’t make that mistake.
Credit Scores: What Actually Matters
Let’s start with the most misunderstood criterion: credit scores.
What Credit Scores Tell You
Credit scores measure: Willingness and ability to pay debts over time.
Credit scores predict: – Payment patterns (on-time vs. late) – Debt management (responsible vs. overextended) – Financial stability (consistent vs. chaotic)
Credit scores DO NOT predict: – Whether they can afford YOUR rent (that’s income) Whether they’ll damage your property (that’s rental history) – Whether they’re a safety risk (that’s background check)
The reality: Credit is a piece of the puzzle, not the whole picture.
Our Credit Score Standards
After 19 years, here’s what we’ve learned works:
750+ (Excellent) – What it means: Pays bills on time, manages debt well, financially stable – Our decision: Approve (if income and rental history are solid) – Watch for: High debt-to-income ratio (could have great credit but be overextended)
680-749 (Good) – What it means: Generally responsible, occasional late payment, manageable debt – Our decision: Approve (if income and rental history are solid) Watch for: Recent late payments (last 6 months)
600-679 (Fair) – What it means: Some financial challenges, multiple late payments, higher debt – Our decision: Approve with strong income (4x rent) and good rental history – Watch for: Collections, charge-offs, judgments in last 2 years
550-599 (Poor) – What it means: Significant financial challenges, frequent late payments, high debt – Our decision: Require explanation + 4x rent income + excellent rental history – Watch for: Recent bankruptcies, evictions, or unpaid landlord debts Below 550 (Very Poor) – What it means: Severe financial distress, defaults, bankruptcies, collections – Our decision: Decline unless extraordinary circumstances (medical bankruptcy, identity theft, with documentation) – Watch for: Unpaid rent, utility bills, or landlord judgments (automatic decline)
The Credit Score Exception: When Low Credit Is Okay
We’ve approved dozens of tenants with 550-600 credit scores. Here’s when:
Scenario 1: Medical Bankruptcy Applicant profile: – Credit score: 565 – Income: $6,000/month (4x the $1,500 rent) Rental history: 8 years, never late, excellent references – Explanation: Medical bankruptcy 2 years ago after cancer treatment
Our decision: Approved Why: Medical debt is different from financial irresponsibility. Income is strong. Rental history is perfect.
Result: 3 years later, still there, never missed rent, renewing lease again.
Scenario 2: Divorce Recovery Applicant profile: – Credit score: 580 – Income: $5,400/month (3.6x the $1,500 rent) Rental history: 5 years in marital home, no rental history – Explanation: Divorce 18 months ago, ex-spouse destroyed credit, has court documents
Our decision: Approved with co-signer (parent, 5x income, 720 credit) Why: Divorce-related credit damage is temporary. Income is solid. Co-signer covers risk.
Result: 2 years later, credit rebuilt to 640, no longer needs co-signer, excellent tenant.
Scenario 3: Young Professional, No Credit History Applicant profile: – Credit score: 620 (thin file, only 2 years of history) – Income: $5,000/month (3.3x the $1,500 rent) – Rental history: 2 years in apartment, always on time, landlord says “would rent again” – Explanation: Recent college grad, building credit Our decision: Approved Why: Low score is due to short history, not bad behavior. Income is solid. Rental history is perfect.
Result: 18 months later, credit is 680, exemplary tenant.
When Low Credit Is NOT Okay
We’ve declined dozens of applicants with 550-600 credit. Here’s when:
Red Flag #1: Unpaid Rent or Landlord Judgments Applicant profile: – Credit score: 570 – Credit report shows: $3,200 judgment from previous landlord (unpaid rent) Our decision: Automatic decline Why: If they didn’t pay their last landlord, they won’t pay you.
No exceptions. Ever.
Red Flag #2: Unpaid Utilities Applicant profile: – Credit score: 585 – Credit report shows: $450 unpaid electric bill, $220 unpaid gas bill (both in collections) Our decision: Decline Why: Utilities are basic living expenses. If they won’t pay utilities, they won’t pay rent.
Red Flag #3: No Explanation + Pattern of Irresponsibility Applicant profile: – Credit score: 560 – Credit report shows: 15+ late payments across multiple accounts, 3 charge-offs, 2 collections – Explanation: “I don’t know, I guess I just forgot to pay stuff” Our decision: Decline Why: Pattern of irresponsibility + no accountability = future problems. Red Flag #4: Recent Defaults (Last 12 Months) Applicant profile: – Credit score: 575 – Credit report shows: 4 accounts charged off in last 6 months Our decision: Decline Why: Recent defaults indicate current financial crisis. Too risky.
What We Look for in Credit Reports (Beyond the Score)
The credit score is just a number. The credit report tells the story. Here’s what we review:
- Payment History (Last 24 Months) – How many late payments? – How late? (30 days vs. 90+ days) – How recent? (last 6 months vs. 2 years ago)
- Collections – What type? (medical vs. rent vs. utilities) – How old? (5 years vs. 6 months) – Amount? ($50 vs. $5,000)
- Public Records – Bankruptcies (Chapter 7 vs. 13, how long ago) – Evictions (automatic decline) – Judgments (especially from landlords)
- Debt-to-Income Ratio – Total monthly debt payments – Compared to gross income Red flag: Debt payments + rent > 50% of income
- Inquiries – Multiple recent inquiries (last 3 months) = red flag – Suggests they’re being declined elsewhere or taking on new debt
The Credit Conversation: What to Ask
When credit is below 600, we have a conversation.
Our script:
“I see your credit score is [number]. Can you help me understand what happened?” Then we listen. Good answers: – “I had a medical emergency 2 years ago that wiped out my savings” “I went through a divorce and my ex didn’t pay joint debts” – “I was young and irresponsible, but I’ve been rebuilding for 18 months” – “I was a victim of identity theft, here’s the police report and dispute letters”
Bad answers: – “I don’t know, I don’t really check my credit” – “The credit system is rigged against people like me” – “I pay what I can when I can” – “My ex ruined my credit” (but no documentation or accountability)
The difference: Good answers show accountability, documentation, and a plan. Bad answers show denial and excuses.
Background Checks: What Actually Matters
Background checks are about safety and legal liability, not judgment. Our goal: Protect current tenants, neighbors, and our legal liability.
What We Check
- Criminal History (Last 7-10 Years) – Felonies – Misdemeanors – Arrests (without convictions) – Sex offender registry
- Eviction History (Last 7 Years) – Eviction filings – Eviction judgments – Unlawful detainer actions
- National Databases – Sex offender registry (national) – Terrorist watch lists (required by some insurance)
Our Background Check Standards
Automatic Decline (Zero Tolerance):
- Sex Offenses (Any Time) – Registered sex offender – Crimes against children Sexual assault/abuse
Why: Legal liability, safety of neighbors, insurance requirements. No exceptions.
2. Violent Crimes (Last 7 Years) – Assault – Domestic violence – Homicide/ manslaughter – Armed robbery – Kidnapping Why: Safety of neighbors and other tenants.
Exception: Domestic violence victim (with documentation, restraining orders, police reports showing they were the victim).
- Drug Manufacturing/Trafficking (Last 7 Years) – Meth lab operation – Drug trafficking/distribution – Manufacturing controlled substances Why: Property damage risk, legal liability, safety.
Exception: Simple possession (case-by-case, see below).
- Arson (Any Time) – Any arson conviction Why: Property damage risk, insurance requirements. No exceptions.
- Evictions (Last 5 Years) – Any eviction judgment for non-payment of rent Why: If they didn’t pay their last landlord, they won’t pay you.
Exception: Eviction due to landlord selling property or uninhabitable conditions (with documentation).
Case-by-Case Review:
- Drug Possession (Last 7 Years) – Simple possession (not distribution) – Marijuanarelated offenses (especially in states where it’s now legal) Our approach: – How long ago? (7 years vs. 6 months) – What drug? (marijuana vs. heroin) – Pattern? (one-time vs. multiple offenses) – Rehabilitation? (completed treatment, clean record since) Example decision: Applicant A: – Marijuana possession, 5 years ago, no other offenses, completed diversion program – Decision: Approve (if income and rental history are solid)
Applicant B: – Heroin possession, 8 months ago, 2 prior offenses, no treatment Decision: Decline
- Theft/Fraud (Last 7 Years) – Shoplifting – Check fraud – Identity theft – Burglary Our approach: – What was stolen? (shoplifting vs. burglary) – How long ago? (7 years vs. 1 year) – Restitution paid? (yes vs. no) – Pattern? (one-time mistake vs. career criminal)
Example decision:
Applicant A: – Shoplifting, 6 years ago, $50 worth of groceries, restitution paid, no other offenses – Decision: Approve (if income and rental history are solid)
Applicant B: – Burglary, 2 years ago, broke into homes, $10K stolen, still on probation Decision: Decline
- DUI (Last 7 Years) – Driving under the influence – Multiple DUIs Our approach: – How many? (one vs. three) – How long ago? (7 years vs. 1 year) License suspended? (affects ability to get to work) – Treatment completed? (yes vs. no)
Example decision:
Applicant A: – One DUI, 4 years ago, completed treatment, license reinstated Decision: Approve (if income and rental history are solid)
Applicant B: – Three DUIs in 3 years, license suspended, currently on probation Decision: Decline (can’t get to work = can’t pay rent)
- Misdemeanors (Last 7 Years) – Disorderly conduct – Trespassing – Minor in possession (alcohol) – Noise violations
Our approach: – How minor? (noise complaint vs. assault) – How long ago? (7 years vs. 6 months) – Pattern? (one-time vs. chronic)
Example decision: Applicant A: – Disorderly conduct, 5 years ago, college party, no other offenses Decision: Approve (if income and rental history are solid) Applicant B: – 6 noise violations, 3 trespassing charges, all in last 2 years – Decision: Decline (pattern of disrespecting rules/neighbors)
What We Don’t Care About
- Arrests Without Convictions – Arrested but charges dropped – Arrested but found not guilty Our policy: Innocent until proven guilty. Arrests alone don’t disqualify.
Exception: Multiple arrests for the same offense (suggests pattern even without convictions).
- Offenses Older Than 10 Years – Felonies from 15 years ago – Misdemeanors from 12 years ago Our policy: People change. Old offenses (10+ years) don’t disqualify unless they’re violent or sex-related.
- Traffic Violations – Speeding tickets – Parking tickets – Non-DUI traffic offenses Our policy: Not relevant to tenancy.
- Civil Disputes – Lawsuits (unless landlord-related) – Small claims judgments (unless rent-related) – Divorce proceedings Our policy: Not relevant unless they involve unpaid rent or property damage.
The Background Check Conversation
When something shows up on a background check, we have a conversation. Our script: “Your background check shows [offense] from [year]. Can you tell me what happened?”
Then we listen.
Good answers: – “I made a mistake when I was young. I completed probation, paid restitution, and haven’t had any issues since.” – “I was in an abusive relationship. I have a restraining order against my ex. That’s why I’m moving.” – “I struggled with addiction 5 years ago. I completed treatment, I’ve been clean ever since, here’s my sponsor’s contact.”
Bad answers: – “That wasn’t my fault, the cops had it out for me” – “I don’t remember that” – “Everyone makes mistakes” (but no accountability) – “It’s not a big deal” (minimizing serious offenses)
The difference: Good answers show accountability, rehabilitation, and honesty. Bad answers show denial and excuses.
References: What Actually Matters (And What’s Fake)
References are the most manipulated part of tenant screening. Why?
Because applicants choose who to list. And people lie.
Our approach: Verify everything. Trust nothing.
The Three Types of References
- Previous Landlords (Most Important) – Why they matter: Past behavior predicts future behavior – What we ask: Payment history, property condition, lease violations, “Would you rent to them again?” – Red flags: Current landlord (may lie to get rid of bad tenant), friend/family posing as landlord
- Employers (Moderately Important) – Why they matter: Verifies income and job stability – What we ask: Job title, salary, length of employment, full-time status – Red flags: Phone number goes to applicant’s cell, “employer” can’t answer basic questions
- Personal References (Least Important) – Why they matter: They don’t. Everyone can find 2-3 people to say nice things. – What we ask: Nothing. We don’t call personal references. – Red flags: All references are friends/family with no professional or landlord references
How to Verify Previous Landlords (And Spot Fakes)
This is where most landlords make mistakes.
Mistake #1: Calling the current landlord Why it’s wrong: Current landlords lie to get rid of bad tenants.
Example:
You call current landlord: “How’s their rent payment?” Current landlord (lying): “Always on time! Great tenant!”
Reality: Rent is 2 months late, property is trashed, landlord wants them gone.
Our rule: Never call current landlords. Always call previous landlords (1-2 properties back).
Mistake #2: Using the phone number the applicant provides Why it’s wrong: Applicants give you their friend’s number and coach them on what to say.
Example:
Application lists: “Previous landlord: John Smith, 517-555-1234” You call: “Hi, I’m calling about [applicant]’s rental history.”
“John Smith” (actually applicant’s friend): “Oh yeah, great tenant, always paid on time!”
Reality: John Smith doesn’t exist. You just talked to the applicant’s buddy.
Our rule: Google the property address. Find the landlord’s contact info independently. Call that number. Our Previous Landlord Verification Process
Step 1: Ask applicant for previous addresses (last 2-3 properties) Step 2: Google each address to find owner/management company Step 3: Call landlord directly (not using applicant’s provided number) Step 4: Verify the landlord is real: – “Can you confirm you own/manage [property address]?” – “Can you confirm [applicant name] lived there from [dates]?” Step 5: Ask the 10 critical questions (see below) Step 6: Listen for red flags in tone, hesitation, and word choice
The 10 Questions to Ask Previous Landlords
- “Can you confirm [applicant] rented from you at [address] from [date] to [date]?” – What we’re checking: Verify they actually lived there
- “What was the monthly rent?” – What we’re checking: Verify they could afford that rent (compare to income)
- “Did they pay rent on time?” – Good answer: “Yes, always” or “Yes, maybe late once or twice in 3 years” – Bad answer: “Sometimes” or “Usually” or “Most of the time”
- “Were there any late payments? If so, how many and how late?” – Good
answer: “No” or “Once, 3 days late, had a good reason” – Bad answer: “Several times” or “10-15 days late regularly”
- “Did they ever pay partial rent or ask for payment plans?” – Good answer: “No” Bad answer: “Yes” (red flag)
- “How did they leave the property? Any damages?” – Good answer: “Clean, normal wear and tear” – Bad answer: “Needed repairs” or “Kept security deposit”
- “Were there any lease violations? Noise complaints? Unauthorized occupants?” – Good answer: “No” – Bad answer: “Yes” (ask for details)
- “Did they give proper notice when moving out?” – Good answer: “Yes, 30+ days”
- Bad answer: “No, just left” or “Broke lease” 9. “How was communication? Did they report maintenance issues promptly?” Good answer: “Great, very responsive” – Bad answer: “Hard to reach” or “Ignored requests”
- “Would you rent to them again?” – THE GOLDEN QUESTION – Good answer: “Yes, absolutely” or “Yes, without hesitation” – Bad answer: “Probably not” or “Maybe” or long pause before answering
How to Read Between the Lines
Landlords won’t always tell you the truth directly. Listen for:
Red Flag #1: Hesitation You: “Would you rent to them again?” Landlord: long pause “Um… yeah, I guess so.”
Translation: No. They’re being polite.
Red Flag #2: Damning with Faint Praise You: “How was their rent payment?” Landlord: “They were… fine.”
Translation: They were not fine. “Fine” means problematic.
Red Flag #3: Deflection You: “Did they pay rent on time?” Landlord: “Well, you know, everyone has tough months sometimes…” Translation: No, they didn’t pay on time.
Red Flag #4: Overly Enthusiastic (From Current Landlord) You: “How’s their rent payment?” Current landlord: “AMAZING! BEST TENANT EVER! YOU SHOULD DEFINITELY RENT TO THEM!”
Translation: They’re desperate to get rid of them.
Red Flag #5: Won’t Give Details You: “Any lease violations?” Landlord: “I’d rather not say.” Translation: Yes, and they were bad.
When References Don’t Matter
We don’t call personal references. Here’s why:
- Everyone can find 2-3 people to say nice things – Friends – Family – Coworkers who barely know them
- Personal references have no accountability – They’re not risking anything by lying
- They want to help their friend
- Personal references don’t predict tenancy – “She’s a great person” doesn’t mean “She pays rent on time” Our policy: We require 2 previous landlord references. Personal references are ignored.
How to Weigh All Three Criteria
Here’s how we make final decisions:
Scenario 1: Strong Income + Good Credit + Clean Background + Good References
Applicant profile: – Income: $6,000/month (4x rent) – Credit: 720 – Background: Clean References: Previous landlord says “Would rent again without hesitation” Decision: Approve immediately
Scenario 2: Strong Income + Fair Credit + Clean Background + Good References
Applicant profile: – Income: $5,400/month (3.6x rent) – Credit: 620 – Background: Clean – References: Previous landlord says “Always paid on time, left property clean”
Decision: Approve Why: Income is strong, rental history is perfect. Credit is fair but not disqualifying.
Scenario 3: Strong Income + Poor Credit + Clean Background + Excellent References
Applicant profile: – Income: $6,000/month (4x rent) – Credit: 570 (medical bankruptcy 2 years ago) – Background: Clean – References: Previous landlord says “Best tenant I ever had, would rent again”
Decision: Approve Why: Income is strong, rental history is perfect, credit has valid explanation.
Scenario 4: Strong Income + Good Credit + Minor Background Issue + Good References
Applicant profile: – Income: $5,400/month (3.6x rent) – Credit: 680 – Background: DUI from 5 years ago, completed treatment – References: Previous landlord says “Great tenant, no issues”
Decision: Approve Why: Income is strong, rental history is perfect, background issue is old and nonviolent.
Scenario 5: Borderline Income + Good Credit + Clean Background + Good References
Applicant profile: – Income: $4,600/month (3.1x rent) – Credit: 700 – Background: Clean – References: Previous landlord says “Paid on time, good tenant”
Decision: Approve with caution Why: Income is just above minimum, but everything else is strong.
Scenario 6: Strong Income + Good Credit + Clean Background + Bad References
Applicant profile: – Income: $6,000/month (4x rent) – Credit: 720 – Background: Clean References: Previous landlord says “They were… fine” (hesitant)
Decision: Decline or request additional references Why: Bad rental history trumps everything else. If they didn’t treat previous properties well, they won’t treat yours well.
Scenario 7: Borderline Income + Fair Credit + Clean Background + Mediocre References
Applicant profile: – Income: $4,700/month (3.1x rent) – Credit: 630 – Background: Clean – References: Previous landlord says “Rent was usually on time, a few late payments”
Decision: Decline Why: Too many yellow flags. Borderline income + “usually on time” = future problems.
Scenario 8: Strong Income + Good Credit + Serious Background Issue + Good References
Applicant profile: – Income: $6,000/month (4x rent) – Credit: 700 – Background: Assault conviction 3 years ago – References: Previous landlord says “Great tenant” Decision: Decline Why: Violent crime within 7 years is automatic decline. Safety of neighbors matters more than income.
The Bottom Line: Income Still Matters Most
After 19 years and thousands of applicants, here’s the truth:
Income predicts rent payment better than credit, background, or references. But you need all four:
- Income: Can they afford it?
- Rental history: Will they pay it?
- Credit: Do they pay their debts?
- Background: Are they safe?
Our results with this approach: – 80%+ tenant retention over 7 years – Zero evictions in the past 3 years – Less than 2% vacancy rate – 95%+ on-time rent payment Our secret: We weigh criteria correctly. Income first, rental history second, background third, credit fourth.
Ready to Stop Making Screening Mistakes?
If you’re tired of approving tenants based on credit scores alone, or declining great tenants because of old background issues, let’s talk.
Free 20-minute consultation: We’ll discuss how our comprehensive screening process protects your investment.
We serve rental property owners in the Lansing tri-county area. Every applicant is screened using our proven 4-step process.
Good screening finds good tenants. Bad screening costs you thousands.
Let us show you the difference. Simply Live LLC | Lansing Tri-County Property ManagementPhone: [ (517) 258-0349] | Serving rental property owners in Michigan’s tri-county area for 19 years
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