Renting to Young Couple

[Ayodeji Kuponiyi]

Hi fellow BPers!

I'm renting a unit from my duplex and a young couple are very interested. Both are in school with one on a scholarship and are working however...the boyfriend works for his brother's construction business and doesn't have W2 to prove income since he gets paid cash. The girlfriend is a waitress and receives tips. She assures me her father would pay $600 leaving them to pay the remaining balance (I'm asking $950 for rent plus $25/per pet/per month) They have 2 pets so rent comes out to $1K/month. 

I asked if her father would co-sign and she said he wouldn't so I asked for her father to write a letter saying who is his and that he will pay $600 towards the rent for the duration of the lease and to have it notarized to which she assures is understandable and doable.

Should I consider them or keep looking?

[Bill S.]

Just for posterity I will explain the thinking behind "Next".

Undocumented income is the classic for deadbeats. If you have no income then to get around that tell the newbie LL you have income you just can't document it. This is the case for both tenants. They are professional tenants and once you give them the keys they will stall and put you off as long as they can so they can stay free. The second option is that these people might be able to afford rent but they have some form of illegal income that they are hiding with this ruse. The last option is their story might be 100% true but experience says it's not worth your time digging through the facts to figure out which is true.

On another note, for waitresses, most meals are paid for with a CC and so tips are also paid with CC. I was told this by a restaurant manager. Since it's paid with CC tips go to the w2 and pay stubs issued by the employer. Their pay stubs will reflect actual income in most cases. He said if you want to be generous you can probably add another 10% which would cover the cash tips. This was for a middle of the road restaurant. 

Construction is a notoriously unstable source of income. It's seasonable and very transient as a general rule. This is especially the case for entry level skilled workers and laborers. 

If Dad won't stick his neck out for his kid and her husband, absolutely no reason for a landlord to take a risk.

When you find yourself working harder than the tenants to get them qualified that is a sure sign to back off and re-read your rental criteria. 

All landlords should write down their rental criteria and review it when considering situations like this. As a rule, never change the criteria when you are trying to fill a vacancy.

A vacancy is a blessing compared to a bad tenant.