New landlord, did I screw up with this potential tenant?

New landlord, did I screw up with this potential tenant?

Member since 2023 · 24 posts · 2 votes

Hello all

First time poster here and need some advice.  I have a guest house on my property that I rent out.  Recently put it on the market and one of the first responses was a sweet girl.  She came on Sunday to the property and liked it so we decided to go through with it.


I sent her the lease on 8pm that day.  By Monday she had still not electronically signed so I asked what the deal was.  She said she did not have all the money for the initial rent + deposit, just half.  I said we can wait until the next day, Tuesday.


she showed up on Tuesday to paper sign lease but still did not have all the funds.  I told her I cannot do it that way, I need all the funds upon signing.  She said she was having a rough week and she’d let me know.  She later sent me a nice text apologizing and that she’ll confirm after he class on Wednesday.  I asked if she’ll have the money by Thursday but she never replied


I texted her around 1pm Wednesday and did not hear back by 6pm so I ultimately gave it to another tenant who paid and signed right away

she replied later that night at 9pm after her class that she has the money and will come after her class on Thursday (today) to drop it off.   I told her I had already given it to someone else

I feel really bad and almost like I screwed her over because she was keeping me in the loop for most of that time and maybe I was a little too impatient?  I really liked her so I have regrets.  Did I screw up?

0Reply
43 views

Most Popular Reply

Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
3y

Were you planning on dating her or renting to her??

I want my tenants to be nice people. I want to get along with them. BUT if they come looking and are not prepared to put deposit and rent down, keep walking. She was trying to see what she could get away with. BAD TENANT. Problem avoided. Keep going.

See this reply in the discussion

21 Replies

Jump to latestLatest
  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    3y

    Hey @Chris Park - no you didn't screw up... a tenant looking at rental options while not having the funds doesn't exactly scream financial responsibility. 

    On another note, I advise you not to make decisions based on your emotions too much. It's a rental business, not a hobby. 

    In my opinion, bullet dodged. 

  • Property Manager · Charlotte, NC · Member since 2022 · 269 posts · 135 votes
    3y

    No, you didn't screw up. Seems like she wasn't as transparent with you and didn't have the funds so it wouldn't have worked anyways.

  • Member since 2023 · 24 posts · 2 votes
    3y
    Quote from @Mohammed Rahman:

    Hey @Chris Park - no you didn't screw up... a tenant looking at rental options while not having the funds doesn't exactly scream financial responsibility. 

    On another note, I advise you not to make decisions based on your emotions too much. It's a rental business, not a hobby. 

    In my opinion, bullet dodged. 

    I felt it would have been a good fit because she was nice and we connected fairly well.  Part of me feels I screwed her over by not waiting a little while until she secured her funds but you’re right, she should have already had the funds ready.  Her excuse was that she had spent a while looking and did not anticipate finding something she liked
  • Member since 2023 · 24 posts · 2 votes
    3y
    Quote from @Tommy Parker:

    No, you didn't screw up. Seems like she wasn't as transparent with you and didn't have the funds so it wouldn't have worked anyways.

    You’re right, I’m just trying to be sympathetic and understand that life happens.  Maybe I could have been more patient?  She said she wasn’t anticipating finding anything she liked.  My issue was is that it left a bad first impression financially
  • Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    3y

    Were you planning on dating her or renting to her??

    I want my tenants to be nice people. I want to get along with them. BUT if they come looking and are not prepared to put deposit and rent down, keep walking. She was trying to see what she could get away with. BAD TENANT. Problem avoided. Keep going.

  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    Wow, you really need to decide if you are going to run a charity or a business. Or hire a PM and let them do their job. You need to establish clear policies and procedures, and follow them every time. It's against Federal Fair Housing laws to judge a book by it's cover. You need to deal with verifiable FACTS, and treat every applicant the same. Screening applicants is the single most important job a LL/PM performs, and you need to get it right or the cost of tuition in the school of hard knocks will skyrocket.
  • Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
    3y

    @Rick Pozos

    Rick hit the nail on the head!!! Your post sounds like you had a romantic interest in her. This is business and you took care of business and got your place rented!!! Bottom line!!! Never mix business with pleasure or family.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Chris Park:

    I don't see any mention of screening. If you had screened her, you would know right away that she can't afford the rental and wouldn't have wasted your time.

    My policy is to screen and approve. When I notify the Tenant that they've been approved, I give them 24 hours to deposit funds and lock in the rental. If they can't/don't then I offer it to the next person. It's fully disclosed so they can't complain.

    The DIY Landlord Book4.7248 Reviews
  • Member since 2023 · 122 posts · 68 votes
    3y

    If you start doing favors they're gonna what other favors. The problem is you have a kind heart. You trying to be understanding and helpful but the tenant isn't doing their part, and in a way, the tenant is taking advantage of your kindness. If you stretch out the deposit next they'll want you to change the rent due date. Because of this new job they are about to get or they thought you said the rent was on the 15th. Then they will ask you to float the utilities for a month. Then they will late pay every month. Then comes the complaining about everything that was there before signing the lease. Nowadays I take problems on the front end as a sign to move on. Remember a tenant is like a marriage. You are trusting them with your house and your peace of mind.  

  • Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    3y

    She was most unlikely to show up with all the money. 
    and you owe fairness to the other people looking who had their stuff together. 

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    3y

    Nope... you just avoided future headaches..... bullet dodged.

    You are letting emotions play a role.... DONT. The only question is "will this tenant pay me every month with no issues and take good care of the unit"?..... that's it. Not how sweet they are, not your emotional connection..... you aren't looking to date them. This is a business relationship..... NOT an emotional one. 

    Next would have been partial rent..... I'll pay you next week.... my car broke down and I dont have the $$ this month....blah blah blah. If they dont pass screening.... you are screening right?..... and ready to go NOW, then move on to the next one. No sob stories, no excuses on not having the $$ right now...

    Consider yourself lucky.....and based on your post, you are not cut out to be a direct LL..... get a PM.

  • Member since 2023 · 24 posts · 2 votes
    3y
    Quote from @Ned J.:

    Nope... you just avoided future headaches..... bullet dodged.

    You are letting emotions play a role.... DONT. The only question is "will this tenant pay me every month with no issues and take good care of the unit"?..... that's it. Not how sweet they are, not your emotional connection..... you aren't looking to date them. This is a business relationship..... NOT an emotional one. 

    Next would have been partial rent..... I'll pay you next week.... my car broke down and I dont have the $$ this month....blah blah blah. If they dont pass screening.... you are screening right?..... and ready to go NOW, then move on to the next one. No sob stories, no excuses on not having the $$ right now...

    Consider yourself lucky.....and based on your post, you are not cut out to be a direct LL..... get a PM.


    I just started doing this, I’m more than cut out for it.  Yes I’m screening and I’m not being emotional, just want to know where the limit lies to cut someone off that expressed interest in the place but were dragging their feet.

  • Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    Yes in my opinion you screwed up with this one but redeemed yourself.  It is tough and I am often really routing for certain applicants I like however they just aren't a good fit.  I call every lead that comes through Zillow or ask FB Mktplace leads to call me and we talk about qualifications.  If everything sounds good before inviting them to tour I ask them if they have the move in funds up front.  It is expensive to move so I understand not having them but if you don't you are not in a position to move.  I'm looking for tenants who have a savings mindset/ ability and aren't just living paycheck to paycheck.  If you haven't saved the funds to move you also don't have a savings to cover medical or car bills and we are only a single emergency away from not paying rent.  I tell them they can call back when they have it but to no surprise nobody does.  If you did anything wrong here it is you had someone apply and probably pay an application fee who had no business applying. 

  • Member since 2023 · 24 posts · 2 votes
    3y
    Quote from @Adam Martin:

    Yes in my opinion you screwed up with this one but redeemed yourself.  It is tough and I am often really routing for certain applicants I like however they just aren't a good fit.  I call every lead that comes through Zillow or ask FB Mktplace leads to call me and we talk about qualifications.  If everything sounds good before inviting them to tour I ask them if they have the move in funds up front.  It is expensive to move so I understand not having them but if you don't you are not in a position to move.  I'm looking for tenants who have a savings mindset/ ability and aren't just living paycheck to paycheck.  If you haven't saved the funds to move you also don't have a savings to cover medical or car bills and we are only a single emergency away from not paying rent.  I tell them they can call back when they have it but to no surprise nobody does.  If you did anything wrong here it is you had someone apply and probably pay an application fee who had no business applying. 


     I don’t charge an application fee but I’ll probably have to in the future for better screening 

  • Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    3y
    Quote from @Chris Park:
    Quote from @Adam Martin:

    Yes in my opinion you screwed up with this one but redeemed yourself.  It is tough and I am often really routing for certain applicants I like however they just aren't a good fit.  I call every lead that comes through Zillow or ask FB Mktplace leads to call me and we talk about qualifications.  If everything sounds good before inviting them to tour I ask them if they have the move in funds up front.  It is expensive to move so I understand not having them but if you don't you are not in a position to move.  I'm looking for tenants who have a savings mindset/ ability and aren't just living paycheck to paycheck.  If you haven't saved the funds to move you also don't have a savings to cover medical or car bills and we are only a single emergency away from not paying rent.  I tell them they can call back when they have it but to no surprise nobody does.  If you did anything wrong here it is you had someone apply and probably pay an application fee who had no business applying. 


     I don’t charge an application fee but I’ll probably have to in the future for better screening 


     How do you screen if you don't charge.  I use Rentprep which does it for me and they pay directly to them.  Are you paying for the screening out of pocket or how does it get done.  I don't know how I would do it better than a professional company and even if I could I prefer a 3rd party to do it and me receive no income to avoid conflict of interest.  

  • Member since 2023 · 24 posts · 2 votes
    3y
    Quote from @Adam Martin:
    Quote from @Chris Park:
    Quote from @Adam Martin:

    Yes in my opinion you screwed up with this one but redeemed yourself.  It is tough and I am often really routing for certain applicants I like however they just aren't a good fit.  I call every lead that comes through Zillow or ask FB Mktplace leads to call me and we talk about qualifications.  If everything sounds good before inviting them to tour I ask them if they have the move in funds up front.  It is expensive to move so I understand not having them but if you don't you are not in a position to move.  I'm looking for tenants who have a savings mindset/ ability and aren't just living paycheck to paycheck.  If you haven't saved the funds to move you also don't have a savings to cover medical or car bills and we are only a single emergency away from not paying rent.  I tell them they can call back when they have it but to no surprise nobody does.  If you did anything wrong here it is you had someone apply and probably pay an application fee who had no business applying. 


     I don’t charge an application fee but I’ll probably have to in the future for better screening 


     How do you screen if you don't charge.  I use Rentprep which does it for me and they pay directly to them.  Are you paying for the screening out of pocket or how does it get done.  I don't know how I would do it better than a professional company and even if I could I prefer a 3rd party to do it and me receive no income to avoid conflict of interest.  

    Thanks for the tip on rentprep.  

    I pay a monthly fee to pull up criminal and eviction history.  I ask for proof of income and I don’t focus too much on a credit report but I will start.  
  • San Francisco, CA · Member since 2020 · 17 posts · 26 votes
    3y

    Nope. Dodged a bullet IMO 

  • Rental Property Investor · Mississippi Gulf Coast · Member since 2022 · 205 posts · 168 votes
    3y

    Renters must have 100% of the first month's rent plus a deposit at the time they complete the application.  This is no different than someone signing a contract to buy a house and not having the down payment.

    The first couple of minutes into the conversation you need to ask if they have $x in hand and are in a position to submit their application and sign a lease for a move-in on x.  

    Never rent to someone without running a background check.  Particularly a check from their current landlord.  My property managers have a few requirements which are as follows:

    1.  Have all of the funds now, not two weeks or one month, etc. Now. 2.  They have a job that pays more than double what the rent will be.  3.  They acknowledge that they have read the lease agreement draft with all stipulations and will comply.  4.  They left or will leave the current landlord without damage and have paid their rent on time.  5.  No more than two persons per bedroom.

    There are more requirements but these are a start.  If they are relying on income from child support , then proof of funds must be submitted e.g. data about payer and information about their source of income.  

    By the way, they all sound nice.  The real nice ones are the ones who pay rent on the 1st of every month, change the AC filters, keep their property clean, and let you know immediately if there is an issue e.g. leaking sink.  Now that's nice.

  • Member since 2023 · 46 posts · 17 votes
    3y

    @Adam Martin thanks for the RentPrep mention, we really do appreciate it!

    @Chris Park If you ever had any questions about RentPrep or our services, you can feel free to reach out to me privately, or you can reach our office directly through our convenient Livechat feature that will connect you to any of our certified screeners in office who would be more than happy to answer any questions you have.

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    3y
    Quote from @Chris Park:
    Quote from @Mohammed Rahman:

    Hey @Chris Park - no you didn't screw up... a tenant looking at rental options while not having the funds doesn't exactly scream financial responsibility. 

    On another note, I advise you not to make decisions based on your emotions too much. It's a rental business, not a hobby. 

    In my opinion, bullet dodged. 

    I felt it would have been a good fit because she was nice and we connected fairly well.  Part of me feels I screwed her over by not waiting a little while until she secured her funds but you’re right, she should have already had the funds ready.  Her excuse was that she had spent a while looking and did not anticipate finding something she liked

     The first sentence is what concerns me. Thats all fine and dandy, and its a nice "perk" to have with a tenant, but it should NEVER influence your decision to rent to someone that is pushing the boundaries of being able to afford your unit. It is expensive to move...coming up with first month and deposit is often a decent chunk of $$.. no doubt But If they can't do that, then whats going to happen when their car breaks down.... they need a new cell phone..... they have some medical bills...or numerous other life events that require you to have some "rainy day" $$$? Paying rent becomes a stretch and you get left holding the bag. 

    You are human.... and sound like a good person with a good heart.... its ok to feel a little guilty, but you have to put that aside and run it like a business. 

    As for screening and application fees.... I don't charge a fee, I just have the applicant directly pay for the background and credit check. And I tell them to only do that if they meet my criteria first and are really interested in the unit. I don't see a dime of the $$ and there are no refunds if you don't get the unit. 

  • Member since 2019 · 2 posts · 1 vote
    3y

    We have it in writing in our listing that applicant has 48 hrs after application approval, to provide funds and sign the lease. Or apartment is forfeited to the next applicant. We don't have time to deal with those kinds of people

Join the conversationCreate a free account to reply, vote on answers and follow this thread.