What kind of tenant are you most easily fooled by.

Question

Being a fairly new landlord (3 years) and having just gotten into my first multi-family. I have found myself making concessions for a certain kind of tenant more than any other. I seem to give much more leeway to the 50 and over crowd. Maybe its because they are my parents age, maybe its because I see the lack of options they have at the end of their hire able years, but I have been taken in twice by older tenants who have fallen on hard times to my detriment. Know that I am aware of my blind spot I will be more careful of it in the future.

What I wonder is, am I the only one. Does anyone else find themselves giving more leeway to a particular demographic?

What I wonder is, am I the only one.  Does anyone else find themselves giving more leeway to a particular demographic?

Marcia Maynard · Answer

Interesting question.  I've allowed myself to be fooled when I've "seen what I wanted to see" or "heard what I wanted to hear" instead of looking at the facts.

Looking back on 18+ years of residential landlording, I can say the problems I most often encountered were a result of not having clear rental criteria in the early days or not following my written rental criteria once I had such in place.  Secondly, not effectively addressing rental agreement violations in a timely manner.  Thirdly, falling behind on my periodic inspections and thus not seeing things that I needed to know.

I've been most often fooled by a "tenant recommendation" from someone known to me who was trying to find housing for an employee, friend or family member of theirs.  These well meaning people may know an individual personally or professionally, but are clueless how the person will be as a renter.

"Rule Breakers" often fool me, because I don't have the mentality of a rule breaker, so I don't always see it coming.   I'm getting better at catching the signs.

Elizabeth Colegrove · Answer

@Rusty Thompson

I have my "rules" and I stick to them. I would say that my "pull to leniency" comes from the military population. My pull is not in the qualifications but in making sure that they are "taken care of" ie in processing, showings at odd hours, quick descions etc. I know it is because we are active duty and understand where they are coming form!

Honestly, having a heart as a landlord isn't a bad thing. Making sure that you are not taken advantage is key!

Annette Hibbler · Answer

Tenants need to prove to me their income well exceeds their rent first and pass the background and credit check.  I don't let emotion get into it cause that's when you are more likely to make costly concessions.   @Bill S. is 100% correct, it's a business not a charity.  "Professional" tenants are adept at deception and will take full advantage of a soft hearted landlord.  Stick to your guns and you're less likely to experience hassles.

One last thing, don't get too friendly with your tenants.  I believe it places you in a more vulnerable situation.

Bill S. · Answer

Not sure I have found myself in your shoes recently. One statement that really helped me was, "would you take food from your kid's mouth to feed this tenant/applicant?" Now it's not really that drastic but asking that question, puts perspective on the situation.

It's a business not a charity. If you want to be charitable with your tenants in need, donate to a local agency that helps the needy and let them pass it to the tenant. Also, I consider my charities 10x more needy than I have found my tenants to be. I can think of exceptions but I haven't actually come across any in real life.

Many times the "help" we give, really is just delaying the inevitable. The best help we can often provide is us calling a spade a spade and directing them face up to their situation. This allows them to move on with life sooner rather than stressing them out by allowing them to drag it out over time.

Trevor K. · Answer

I agree.  follow the leases and rules to the letter.  It is much easier to enforce the rules the same all the time, and much harder to lose a lawsuit this way.

Aly W. · Answer

When I was 18, I moved to LA on my own and applied to rent an apartment. I was a waitress at Bob's Big Boy and barely made enough to cover the rent and utilities. I had no previous rental history and my parents were not supporting me financially. The apartment complex managers, an elderly couple, said I reminded them of their granddaughter and they approved me for the apartment.

Now that I'm a landlord, I know I would never have rented to me ;) No rental history, income unverifiable as a waitress other than hourly minimum wage, tip income always fluctuating, no way it was ever 3 times the rent, etc.

I always paid the rent; there were times my groceries consisted of popcorn and rice, but I always paid the rent. I now have a rental unit vacant and got a call from an applicant 20 years old with a 3 year old child, and when I asked  about her rental history, she said "I don't have any, I'm too young! I live with my mother".

She has a job, but my criteria includes a rental history. I give a lot of credit to landlords like @Michele Fischer who give new renters a chance. An apartment complex can afford to take a risk with one questionable tenant; my husband and I own individual properties and can't deliberately take that risk.

Steve Babiak · Answer

I view that age group a bit differently I guess, but still give them the same opportunity and acceptance / rejection criteria.

People that age that are still renting are renters rather than owners for a reason. Many times that reason will be due to poor financial decision making, so you have to evaluate their financial position just like any other applicant. That way you do not have them as your tenants while they continue to make poor financial decisions.

There are good (read that to mean acceptable) reasons as to why people in that age group are renters, so you just need to perform screening to weed out those who are renters for the wrong reason.

Rolanda Eldridge · Answer

I follow my criteria for renting, but sometimes emotion does play a part.  Some are yellow flags(caution).  I believe in second chances  especially when I see the tenant reestablishing.  Most do well and stay for years.  Yes, I have been burned a time or two but I'm still winning.  I chalk it up as experience and keep it moving!

Michele Fischer · Answer

This is an interesting thread.

I've joined a local Facebook group for housing and it seems to get a lot of traffic by people who can't qualify.  They get rejected by the property management companies so they are actively looking for independent landlords.  Bingo, that's me.

In the past we have tended to try to get applicants "just starting out" into our units, since we know their options are more limited.  The good is that they can normally move in right away and often have support from family.  The bad is that they often don't have the other qualities we look for - employment longevity, high enough income, bank accounts, etc.

People with pitbulls also have limited options, but we see this as a situation they put themselves in and indicative of being poor renters.

What I have a hard time seeing or quantifying is how high maintenance a tenant could be.  If they drive you crazy with unrealistic expectations it is unpleasant and higher risk to end up in court.  I am getting better at spotting red flags.

Agree that having policies and rental criteria are the best way to make the decision less personal and more facts and data driven.

What kind of tenant are you most easily fooled by.

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