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Updated 5 months ago on . Most recent reply

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Dana Richardson
  • Clearwater, FL
12
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28
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Would you lie on payment history for your tenant?

Dana Richardson
  • Clearwater, FL
Posted

Hello,

We have tenants that moved to Florida from out of state and didn’t have rental history, jobs, and also a low credit score.  We rented to them as they had cash from selling their home and paid us first, last, and security plus 3 months of rent extra.  Needless to say, multiple times they were not able to pay and we had to use all the reserve funds and sent them notice of non renewal.  We are now getting notice from something they filled out asking us about their payment history,  They are nice people and take good care of our home, but they lack communication and clearly can not handle their finances.  What would you do?  Lie or tell the truth?

Thank you,

Dana

Most Popular Reply

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Dan H.
#2 General Real Estate Investing Contributor
  • Investor
  • Poway, CA
6,979
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Dan H.
#2 General Real Estate Investing Contributor
  • Investor
  • Poway, CA
Replied

I tell the truth that I can prove.  If tenant does not like the truth, we have records of when they paid, the condition of the unit at move-in and move-out, the record of security deposit deductions including photos.

if a tenant wants to sue for the truth, I consider it a cost of doing business.  We have not yet been sued for any feedback.  In general, we do not get a LL reference check request from our poor tenants.   I suspect they are having someone impersonate us as their LL.  

Why risk being sued?   Because I want honest LL feedback when I am screening tenants.   It would be hypocritical for me to want honest LL feedback but not be willing to provide it for the next LL. 

Fortunately, a very large percentage of our tenants deserve positive LL reference so it has seldom been a problem.  

also I have been threatened of being sued by tenants dozens of times and have never been sued.   It is because the tenant has no case.   They are playing poker with a $hit hand and I know it.   You cannot bluff if the other players know you have nothing. 

Tell the truth as to what you can prove.  If you do not have the proof, then do not state anything.   Provable Truth is a great defense.  

Good luck

  • Dan H.
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