24 y/o, just bought my first house hack. How to avoid poor tenants?!
New to Real Estate · Seattle, WA · Member since 2020 · 24 posts · 25 votes
24 y/o, just bought my first house hack. How to avoid poor tenants?!
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Member since 2023 · 32 posts · 25 votes
2yMake sure that you thoroughly screen your applicants. When screening keep an eye on Evictions, Past collections, Criminal history, Credit score. Additionally you should always perform a rental verification and income verification. Keep an eye out for fraud and actually call the applicants place of employment to ensure that the the company is legitimate and that the applicant actually works there. Hope this is helpful!
17 Replies
- 2yTaylor DaschBusiness MemberReal Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
Theres plenty of sites that will do the background check, I use smart move. Always be sure to call the previous landlord - I have had a few times where they put fake landlord names ( their friends ) or lied about their standing with their landlord in the application. For a mentor, Id just try and find someone who needs help who is already investing and try to help them in whatever way you can.
Taylor Dasch | EG Realty560 Reviews - New to Real Estate · Seattle, WA · Member since 2020 · 24 posts · 25 votes2y
Quote from @Taylor Dasch:
Theres plenty of sites that will do the background check, I use smart move. Always be sure to call the previous landlord - I have had a few times where they put fake landlord names ( their friends ) or lied about their standing with their landlord in the application. For a mentor, Id just try and find someone who needs help who is already investing and try to help them in whatever way you can.
Thanks! I will start there.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Timothy Eaton:
Hi,
I just purchased my first home in the West Seattle area and I am going to be house hacking it as I renovate the unfinished basement, then I will refinance and end up renting both the top unit and the basement (as long as everything goes smoothly). But I am struggling with how to protect myself with poor tenants. Can anyone help?
I understand screening tenants is highly important and that's where I will start. But you can never know exactly how these tenants will be once they move in. In King County, evicting tenants seems to be a horror story. Is there any way I can add some sort of eviction clause that takes precedent over any of the county eviction laws, into the rental agreement?
As for screening tenants, what do landlords do for checking credit, inquiring to previous housing of an applicant, etc?
P.S. I am looking for a mentor. Can anyone direct me in the right direction? I am more than happy to do some free work for a potential mentor.
screen them,
- Member since 2023 · 32 posts · 25 votes2y
Make sure that you thoroughly screen your applicants. When screening keep an eye on Evictions, Past collections, Criminal history, Credit score. Additionally you should always perform a rental verification and income verification. Keep an eye out for fraud and actually call the applicants place of employment to ensure that the the company is legitimate and that the applicant actually works there. Hope this is helpful!
- New to Real Estate · Seattle, WA · Member since 2020 · 24 posts · 25 votes2yThank you, and yes it does help. It helps me put together a check list of things to verify before renting to someone.
Quote from @Alec Barnes:
Make sure that you thoroughly screen your applicants. When screening keep an eye on Evictions, Past collections, Criminal history, Credit score. Additionally you should always perform a rental verification and income verification. Keep an eye out for fraud and actually call the applicants place of employment to ensure that the the company is legitimate and that the applicant actually works there. Hope this is helpful!
- 2yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
Do all of the things that have been suggested and always remember the mantra "better to have no tenant than a bad tenant"! Never compromise.
- 2yNed J.Pro MemberInvestor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
Obviously screening is THE most important, but even then, you never know until you know. Its all about mitigating risk.... you cant get rid of it completely.
Other things to do to put icing on the screening results...
Contact the second most recent landlord.... they will tell the truth... the most recent may lie to get rid of them
Meet them in person.... trust your gut during the interactions
Visit their previous residence if local... is it trashed?
Look at their car....is it full of garbage or decently kept?
- Member since 2022 · 1k+ posts · 1k+ votes2y
Sorry to rain on your parade, but all the landlords are leaving Seattle. What are you thinking? If you're going to make it work you'd better know what you're doing waaaaaaaaay before you have someone sign that contract. The best protection for you might be renting rooms, SRO. Have lots of clauses in your contract, if any rule is broken send proper notice. Anyone with kids in school and you are screwed. Take your time and do a thorough screening. By law, screening will not show criminal or eviction history. You'll have to go to the courts and look them up personally.
- Member since 2024 · 1 post · 0 votes2y
if you can see their last 4 pay stubs is a good way to know they are still employed. Their supervisor can be friends with them and can lie and tell you they are still employed.
- 2yTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
@Henry T. ease up, man. He bought a house that he is going to live in and wants to subsidize his housing expense. All the landlords are leaving Seattle? Come on...there are reasons to not like it, but the place has appreciated to the moon and has one of the most robust job markets in the country. It's also a great place to live.
@Timothy Eaton do tenant screening and be stick to your parameters. There are worse things than vacancy. If you're nervous about it, start everyone on a month to month lease. I actually prefer month to month leases with a 30 day notice to leave. If tenants don't want to pay you or do not wish to honor the terms of the lease, they're just going to leave or do it anyway. You'll be stuck chasing them for money you'll likely never get. If it is month to month and a tenant sucks, tell them that you won't renew the lease at the end of the month. Good screening, common sense, decency, and treating people fairly will avoid 99% of problems. Also, West Seattle is an awesome neighborhood. The class of tenant that you will attract there will be great. My wife and I actually kicked the tires on a place there (to move to as a primary) several years ago. Woulda been nice to have gotten into that neighborhood at 2018 prices. You're going to look up in 5-10 years and feel great about that purchase. Nice work.
Good luck and feel free to reach out if you think that I can be a resource. I have nothing to sell and would be happy to help.
- 2yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
@Timothy Eaton pretty sure Seattle has their own unique applicant statutes.
You can't ask about criminal history and you have to accept first qualifying applicant.
Not sure on those, so be sure to ask!
Logical Property Management4.9453 Reviews - 2yDavid BennettBusiness MemberProperty Manager · Bothell, WA · Member since 2024 · 49 posts · 31 votes
Timothy, One thing I suggest is to join Rental Housing Association of Washington (RHAWA). This is an owner/PM oriented organization with a lot of resources such as forms, leases, notices, and educational materials on the laws in all the various WA jurisdictions.
To your question about overriding the county laws or any other laws in the city - no you can't. But if you know what your rights are and the procedures you are required to use to evict someone you are better prepared. People get frustrated with a tenant, but have not given the correct notices and find that they are stuck with the tenant because they have not done their job to manage the tenant.
However the best strategy, as everyone is alluding to, is to screen the applications properly AND within the law. There are 7 federal fair housing classes, 7 more in WA State and a couple more in Seattle. Know the law. I am a PM in Bothell, but do business in King county, so feel free to DM me questions.
- 2yDavid BennettBusiness MemberProperty Manager · Bothell, WA · Member since 2024 · 49 posts · 31 votes
BTW - contrary to what Travis said about month-to-month, I would avoid MtM in Seattle. Use a term lease and do not accept rent payments after the term expires, because that will convert it to MtM. For both MtM and a term lease in Seattle you must have just cause to not renew, but it is far easier to deal with a just cause with a term lease than a MtM. And MtM tenants in Seattle have even more "tenant friendly" rights that put you in a corner. Henry is a little on the cynical side, but he in not entirely wrong that it can be more difficult to be an owner in Seattle.
- Seattle, WA · Member since 2017 · 275 posts · 223 votes2y
I got started as a LL in seattle, and still have one property - a triplex - there. When I got started (2006) seattle only had just cause on top of state LL/T laws, and one of the just causes was 'term lease expired'. Times have changed.
My advice to somebody looking to start out in seattle now (and who already owns a property there, so "look elsewhere" isn't a simple option:
1) As previously suggested, join RHA. Take advantage of their new landlord and fair housing classes.2) read entirety of Seattle and WA's LL/T ordinances. Especially understand implications of things like roommate ordinance, first in time and fair chance, deposit installment payments, annual eviction moratoria,
3) Have the financial reserves available to withstand two years of nonpayment, on top of costs of eviction proceedings and supporting a deadbeat tenant.
4) seriously consider PM from day 1. True, its a 10% cost off the top if you have only 1 or 2 units, and I didn't hire PM for my first 10 years or so, and I learned a heck of a lot by managing things myself about me, other people, and the business. But its a different world than it was then.
5) changes in LL/T rules have made term leases in seattle almost pointless. It used to be this was the easiest method of having an out to get rid of bad tenants by nonrenewing, but this is NOT AN OPTION in seattle anymore. (It still is statewide under narrow circumstances) My philosopy which has served fairly well is never get in the way of an unhappy tenant who wants to move out. In fact I often incentivize tenants who are acting out to move; for example like offering to waive cleaning costs as long as they empty the unit, and not penalizing them for lease break.
6) Screen, Screen, Screen. Charge the highest rents you can to also prefilter out the weakest applicants. Don't try to do someone a favor. You will hear sob stories if you are meeting applicants yourself. Don't fall for them. Don't fall for the I-have-X-months-cash-I-need-to-move-in-today routine. You'll never see any more rent after that. They have that much because they weren't paying the last landlord and are getting evicted probably. All this screening, calling employers and prior LL's and verifying they are legitimate can be tough especially someone (like myself) who has nice-guy syndrome but it is critical to protecting yourself.
Finally, I'll paraprhase what was said above - One bad tenant is as much work as 20 good ones. You don't want that bad tenant especially just starting out. There ARE 'professional tenants' out there who seek out new and inexperienced landlords hoping to take advantage of you. So do everything you can to avoid them. Its a fairly low risk, but when it does happen is when you see these disputes in the news. It is getting more common however I think though I won't dive into the editorial as to why. - 2yMelanie P.Pro MemberRental Property Investor · Member since 2023 · 1k+ posts · 922 votes
When doing your screening try to develop your own contacts. Don't dial tenant-provided numbers. To verify paystubs Google the company and call their listed number. When you speak to the employer ask if the position is permanent and if they are happy with the applicant's work. If you're going to contact a prior landlord Google the old address to find prior ads for rent with contact info, look up the owners and see if you can reach them through Facebook or LinkedIn.
You will enjoy insane price appreciation on your investment even if the rent itself is not a cash cow. Stay positive.
- 2yAnnie EugsterBusiness MemberSpecialist · Seattle, WA · Member since 2024 · 1 post · 1 vote
Screening potential tenants is tremendously important.
As a housing provider, you must clarify what you will use as your tenants' criteria: a specific credit score, how many months or years of employment and rental history, etc.Everyone's responses on this thread have been great. Absolutely check references, but you need to make sure that you have in writing that the applicant has given permission to do so, and have a copy on hand to email or forward to references. Otherwise, references may not legally be able to speak with you.
I would recommend to familiarize yourself with the Seattle Renters' Handbook. This is to be given, physically, to your tenant at move-in. It's an outline of the responsibilities and obligations of both tenants and landlords.
Also, take a check or money order if there is a quick turn around time from screening to move in, don't get burned because the tenant's check bounced and you have already given them keys.
Good luck in your property management journey!
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