Prospective tenants claiming their landlords are selling
Rick BassettBusiness Member
Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
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Prospective tenants claiming their landlords are selling
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4yQuote from @Rick Bassett:
As of late, there seems to be a bumper crop of prospective tenants claiming that their reason for seeking a new rental unit is that their landlord is selling the property. Yet, the number of houses coming on the market in our area doesn't seem to match the volume of these claims. Also, a good number of these prospective tenants (not all though) are currently living in hotels.
Given the number of times that we have heard this over the past 30 - 60 days, we started wondering if the real reason has more to do with the recent ending of the eviction moratorium catching up with non-paying tenants. It is difficult to know for sure as landlords weren't able to file the typical eviction paperwork with the courts over the past 16-18 months that would normally be our source of public records.
We are now considering asking for proof of the last 2 - 3 months' rent payment (their rent receipts) when these red flags come up. Is anyone else doing this?
I hear this from tenants and I have been able to verify the house has been sold in many cases. I think this is happening a lot right now due to high values and a hot market. Just this morning I was reading a post from an investor on BP talking about buying a property and giving notice to the existing tenants to vacate.
However, I know there are applicants that use this to cover up the real reason they are moving. I don't see an issue asking for 2 or 3 months worth of bank statements. We used to do this years ago, before moving to higher standards on credit score. Many landlords don't evict or don't seek judgement for money owed, so you may not see it on a credit/eviction search. Of course you can also get the name of their previous landlord. Just be careful that they are not giving you a friends phone number. Larger operators are easy to verify, because their phone number can be checked on a website.
Also keep in mind it could be that the previous landlord sold the property after getting stiffed for rent during the eviction moratorium. Many tired landlords are selling right now, so even if it was true that the property was sold, that still doesn't mean they were a good tenant. Just be careful on screening and don't worry about the "story".
5 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4yI just looked at North Haven and only see six homes for rent. There are an increasing number of investors selling their properties to take advantage of the high prices. This will increase the number of renters with this story. When you only have six rentals in your market, it's reasonable for you to hear this story several times.
Quote from @Rick Bassett:
As of late, there seems to be a bumper crop of prospective tenants claiming that their reason for seeking a new rental unit is that their landlord is selling the property. Yet, the number of houses coming on the market in our area doesn't seem to match the volume of these claims. Also, a good number of these prospective tenants (not all though) are currently living in hotels.
Given the number of times that we have heard this over the past 30 - 60 days, we started wondering if the real reason has more to do with the recent ending of the eviction moratorium catching up with non-paying tenants. It is difficult to know for sure as landlords weren't able to file the typical eviction paperwork with the courts over the past 16-18 months that would normally be our source of public records.
We are now considering asking for proof of the last 2 - 3 months' rent payment (their rent receipts) when these red flags come up. Is anyone else doing this?
Why don't you just contact their Landlord for a reference?
The DIY Landlord Book4.7248 Reviews - Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes4y
Quote from @Rick Bassett:
As of late, there seems to be a bumper crop of prospective tenants claiming that their reason for seeking a new rental unit is that their landlord is selling the property. Yet, the number of houses coming on the market in our area doesn't seem to match the volume of these claims. Also, a good number of these prospective tenants (not all though) are currently living in hotels.
Given the number of times that we have heard this over the past 30 - 60 days, we started wondering if the real reason has more to do with the recent ending of the eviction moratorium catching up with non-paying tenants. It is difficult to know for sure as landlords weren't able to file the typical eviction paperwork with the courts over the past 16-18 months that would normally be our source of public records.
We are now considering asking for proof of the last 2 - 3 months' rent payment (their rent receipts) when these red flags come up. Is anyone else doing this?
I hear this from tenants and I have been able to verify the house has been sold in many cases. I think this is happening a lot right now due to high values and a hot market. Just this morning I was reading a post from an investor on BP talking about buying a property and giving notice to the existing tenants to vacate.
However, I know there are applicants that use this to cover up the real reason they are moving. I don't see an issue asking for 2 or 3 months worth of bank statements. We used to do this years ago, before moving to higher standards on credit score. Many landlords don't evict or don't seek judgement for money owed, so you may not see it on a credit/eviction search. Of course you can also get the name of their previous landlord. Just be careful that they are not giving you a friends phone number. Larger operators are easy to verify, because their phone number can be checked on a website.
Also keep in mind it could be that the previous landlord sold the property after getting stiffed for rent during the eviction moratorium. Many tired landlords are selling right now, so even if it was true that the property was sold, that still doesn't mean they were a good tenant. Just be careful on screening and don't worry about the "story".
- Rental Property Investor · North Jersey Shore · Member since 2020 · 102 posts · 49 votes4y
We have recently asked for rent receipts and/or bank statements (harder to fake)for 9 months or more.
zillow and MLS helps with the 'the LL sold/is selling the house" claims.
We just filled a SFH in 4 days as our corner of the world only had 3 SFH for rent. Many squawked about the price, a few knew the score
Our hope and concern at this moment is the sustainability of the market
- 4yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
I always verify past landlord references and employment; and I make sure I am talking to the correct person and not the applicant's mother. "We sold the house" "They are selling the house" "The check is in the mail". Eventually you will hear them all!
- Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes4y
All, we do pretty thorough screening now once someone applies are we will catch them if they aren't telling the truth. The bigger issue now is to cut down the number of tire-kickers by potentially telling them upfront that we will require proof of rent.
Nathan G - 2 of those are our properties, 6 homes on the market are about 20 less than the typical average
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