Looking at a tenant’s available credit is a great way to prevent future problems. Consider the following situation. The tenant can easily afford rent today, but they have $50,000 in available credit on high interest credit cards. What if that credit is used, could they still make rent payments comfortably?
Lots of available credit might look good up front. It certainly helps boost a credit score. It’s also a potential liability that we try to avoid as a property management company.