My $3000 rent property now has turned over after 7 years. What am I going to do?

Question

So I got this luxury property in a very nice gated subdivision in the northern suburbs of Atlanta. As a rookie investor, who had no idea how to invest in 2006 paid full price new construction for this SFR and now hoping that i can hold this home for another 1-2 years. My SFR rentals where I charge rent of $1600 are pretty easy for me to screen and select the right tenants. For this property, I am feeling a little nervous.

So far I turned down a Los Angeles Clipper basketball player and a Hip hop rap artist. But I just got an interesting application from famous gospel singer.

Check out this youtube video? He's got a voice from heaven. Should i take him in as my tenant?
	 
	 http://www.youtube.com/watch?v=TfyNPleary8&list=ALBTKoXRg38BDIqwIzYgq1JAijm_qXM4-T

Robert Leonard · Answer

I didn't watch the video, because I don't consider talents when I screen my applicants for rentals. If someone said, watch this cool video of me, I would probably watch it to see if they were involved in anything that I don't want to associate with, but otherwise, it wouldn't help them get into my property.

I don't care if s/he hunts alligators or can sing like an angel.  Do they have more than 3 times the rent in monthly income?  Do they have a 3 year work history with good references from their supervisor/previous landlord/personal references?  Are they financially responsible enough to have bank accounts and balance them without overdrafts or very low balances?

Those are the things that matter to me about a rental applicant.

John Adamkewitz · Answer

I would be very gaurded about renting to any professional athlete, I'd assume that they would be traveling most of the time leaving your property open for their friends and party's and who knows what else.

None of the younger guys seem to do well with money, and the more money the worse they are with it.

If I was handed a check for a few million dollars at the age of 19-20, I'm pretty sure the landlord of the $3000 per month apartment and I would no longer be friends when it was over.

John

James Park · Answer

@Rob K,

Little bit of both and not feeling comfortable. I do the standard procedure of 3 month bank statement, credit score, and income verification, but I also follow my gut and listen to my inner voice when selecting tenants for my properties.

For example, suppose one is applying to an Ivy League institution, but has a poor GPA and SAT scores. I try to find out why. If this person was just plain irresponsible, I turn down that applicant. If there are unforeseen circumstances, I give that applicant a second thought. There are times when I follow my gut when making decisions, and looking back I had made a good decision.

Michaela G. · Answer

Frankly, I wouldn't have a problem renting to someone who's got accountants to pay for it all ;-).

If they have enough money, then I don't care if they have parties. They'll help newly renovate those things that may be 10 years old by then ;-)

Albert Hasson · Answer

over the years I have had two major leaguers apply to rent one of my houses.  The first I rejected because although he provided proof of insanely huge pay checks, his credit was shot due to a foreclosure and poor money management skills.

The second I accepted on an 8 month lease, pre-paid.  He was a good tenant but left the place an absolute mess, don't think he vacuumed or cut the grass even once!  Still, if he came back and wanted to rent again I would rent to him.

John Adamkewitz · Answer

I love Veterans, I even bump them up on the list. But even if Ozzy Ozbourne were a former Marine (He's Not) I'd have to pass on renting to him and his posse.

I don't think the laws protect rock stars or Gospel singers. . . . .Yet.

John

Michaela G. · Answer

Georgia is pretty strict to protect tenants from discrimination.

If a potential tenant fits your criteria, you can't just reject them on gut feeling or you leave yourself open to potential lawsuit.

Elizabeth Colegrove · Answer

@James  Park

What did your previous tenants do? Personally as long as I had a security deposit and they passed my 3x rent, credit check, background, no foreclosures or bankruptcy and references I would rent to them.

Personally my niche to rent is to military/veterans. So far they have been AMAZING tenants. I know on here I have seen a few posts where people have mentioned they don't rent to them because of the Soldier Sailor Act.

My point is everyone has their "niche". I would not reject someone based on what they do, I would reject them based on what the numbers say unless your gut is SCREAMING. Than I would really look and see why you are uncomfortable because there is something wrong OR because you are uncomforatable because you have never rented to this kind of tenant before.

Rob K. · Answer

Curious why you turned down the Clippers player? He would have the income. Was credit or rental history bad?

My $3000 rent property now has turned over after 7 years. What am I going to do?

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