Tenant Credit Scores: What Property Owners Need to Know

Preparing to screen tenant applications and wondering what kind of credit score to accept?

Credit is an important qualifying detail. When you’re establishing criteria for which applications will be approved and which will be rejected, you will likely establish a minimum credit score for applicants.

A great property in a thriving market can still underperform if your tenants consistently pay late, cause excessive wear, or leave before their lease ends. Tenant screening is critical, and credit scores are one of the most powerful tools available in that process.

Quick Overview: Credit scores give you a snapshot of someone’s ability to manage debt and bills. Credit scores are important in the screening process but should be accompanied by other screening criteria. Set your own credit score criteria and be consistent with every application. Tenant placement can be fast or inefficient due to tenant credit scores; make sure you’re balancing longer vacancy against risk of late or missing payments.

Why Credit Scores Matter in Tenant Screening

A credit score is essentially a numerical summary of a person’s financial history. While it doesn’t tell the whole story of someone’s ability to be a good tenant, it does provide insight into how consistently they’ve met financial obligations in the past. For property owners, this tells you two key details:

1. Likelihood of on-time rent payments. Rent may not always be reported to credit bureaus, but past behavior with credit cards, auto loans, or mortgages is often predictive of payment patterns.
2. Overall financial reliability. A tenant with a higher score is generally better positioned to handle unexpected expenses, reducing the odds that your rent becomes the bill they skip.

Credit scores help you gauge risk and protect your investment.

Understanding Credit Score Ranges

Most landlords use FICO scores, which range from 300 to 850. Here’s a general breakdown:

• Excellent (750+). Rarely a concern. These tenants typically pay on time and qualify for the best loan rates. Most landlords cannot expect to get a high number of credit scores in this range.
• Good (700–749). Solid candidates with strong payment histories.
• Fair (650–699). May have some blemishes but often acceptable, especially with additional safeguards.
• Poor (600–649). Higher risk. Past late payments or collections may be present.
• Very Poor (<600). Significant financial issues, likely to struggle with consistent rent payments.

As a landlord, the threshold you set depends on your market, property type, and tolerance for risk. We can talk about what the appropriate credit score minimum might be for your specific investment. Other factors will always need to be included, particularly eviction history and income.

Florida’s Unique Rental Market Context

Florida’s rental market is diverse. In high-demand cities like Orlando, Tampa, and Miami, landlords may have the luxury of setting stricter credit score minimums because applicant pools are large. In smaller towns or seasonal markets, being too rigid might shrink your applicant base unnecessarily.

Insurance costs, property taxes, and maintenance expenses are higher in Florida than in many states, so protecting cash flow is essential. That makes creditworthiness a particularly valuable screening metric here.

But remember: tenants have been dealing with inflation and rising costs. There’s a lot of medical debt and student loan debt that could be dragging scores lower than they’d normally be. Credit scores are a valuable metric, but they’re not the only way to determine whether a tenant is qualified. 

Balancing Credit Scores with Other Screening Factors

Credit scores should never be the sole deciding factor in tenant placement. Here’s what else you need, and why:

• Income Verification. A tenant with a fair credit score but strong, stable income may still be a safe bet.
• Rental History. References from prior landlords often provide better insight into reliability as a renter than credit alone.
• Debt-to-Income Ratio. Someone with a 700 credit score but high debt obligations could struggle just as much as someone with a lower score.
• Life Events. Medical bills, divorce, or temporary job loss can drag down scores without reflecting a tenant’s current ability to pay.

For Florida rental property owners, balance is necessary. Using credit scores in conjunction with employment verification, background checks, and rental references creates a fuller, fairer picture.

Setting Your Credit Score Criteria

When deciding how to use credit scores in screening, clarity is your friend. Establish written criteria before you begin reviewing applications. This protects you legally and ensures you apply standards consistently. Some examples include:

• Minimum score threshold. For instance, you may require a score of 650 or higher.
• Conditional acceptance. Applicants with scores between 600–649 may be accepted with additional security, such as a higher deposit or co-signer.
• Automatic rejection. Applicants below 600 may be declined outright, depending on market conditions.

In Florida, where tenant demand remains strong, many landlords find they can set higher standards without deterring interest.

How Credit Scores Impact Tenant Placement

Ultimately, tenant placement is about balancing cash flow stability with vacancy risk. You don’t want to hold out in the hopes that someone with an 800 credit score will want to rent your property. But, you also don’t want to hand over the keys to someone who is barely holding onto their 520 credit score. 

Higher credit score requirements usually mean fewer missed rent payments but can slow down leasing if the pool of qualified applicants is small. Lower thresholds fill vacancies faster but increase the risk of late or missed payments.

Tenant credit scores are not the only factor in screening, but they’re one of the most reliable predictors of financial responsibility. For Florida rental property owners, where operating expenses can be high, using credit scores effectively helps safeguard investments.

By establishing clear criteria, applying them consistently, and weighing scores alongside income and rental history, you’ll set yourself up for fewer vacancies, stronger tenant relationships, and a healthier bottom line.

If you’d like to talk more about tenant credit scores and screening, please contact us at Park Avenue Property Management. We’re providing expert support and advice in Celebration, Orlando, Lake Buena Vista, Kissimmee, Maitland, Altamonte Springs, West Palm Beach, Tampa Bay, and throughout Central Florida.