Rental Property Investor · Plano, TX · Member since 2015 · 80 posts · 14 votes
Hi, I bought my first rental property and I am very new to the landlording scene so I'm hoping someone can help me with a conundrum I'm in right now. Since I was a little late getting in the property, I missed the summer peak and there is not a lot of people looking for a rental property now that school has already started. A beautiful family of 2 adults and 3 kids recently liked my house and are willing to rent it out. They told me upfront that they had poor credit due to medical bills and the husband had a felony charge back in 2009. I ran their credit and the same came up, however, no evictions and good job history. They lived in an apartment complex before who did not give out any information when I called them and they are currently living with family and are looking for a bigger place of their own. It all looks good but I'm not sure if I am falling for a sob story. What are somethings I should look for or do to make sure they really are trying to rebuild their life and not showing me a rosy picture. They do claim they are making all the payments on time and trying to build their credit back up so they can buy a house some day.
Investor · Sugar Land, TX · Member since 2016 · 109 posts · 46 votes
10y
Ask for copy of checks that they claimed they paid rent or any kind of proof that rent is paid on time. I have had bad tenants with perfect credits and perfect tenants with bad credits so as long as they can show they have income and can provide rental history, you will be fine.
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
10y
I'd let them walk. Bruised credit is one thing could always ask for more deposit, but living with family?? not able to verify previous landlord?
Stick to your criteria it's less expensive to wait for a qualified tenant than get stuck 3 months down the road with a UD and a messy place to clean up.
Up date your listing daily, add more info to your lisitng, and keep the phone handy you'll get the calls.
They lived in an apartment complex before who did not give out any information when I called them and they are currently living with family and are looking for a bigger place of their own.
A landlord who will not talk and tenants now living with family? These are major red flags. I would suspect an eviction and at the least a significant level of instability. Are these really the best tenants you can find? If they do not work out can you afford lost rent possibly for three months or more plus lawyer's fees and court costs? if the answer to any of this is no you should keep showing. I would pass on these tenants based on your information. I know school has started but the truth is that with discipline and focus you can find good tenants any time of the year.
Rental Property Investor · Gwinnett Co., GA · Member since 2016 · 34 posts · 6 votes
10y
Hmm, it sounds like they are too sketchy and I agree with Brandt's post above. It's much better to have an empty rental than it is to deal with very difficult tenants who don't pay. And even worse, tenants who tear your place up. It's simply not worth the cost. Screen best you can and go with your feeling after talking to them and I get the impression from your post that you are not completely comfortable renting to this family.
Rental Property Investor · Phila, PA · Member since 2015 · 276 posts · 111 votes
10y
@Lallu Tappu. "A beautiful family of 2 adults and 3 kids recently liked my house and are willing to rent it out. They told me upfront that they had poor credit due to medical bills and the...". This makes you sound desparate. Are you willing to lend them your asset?
Where do these prospective tenants fit within your criteria? As a result of your due diligence, Would you lend them money/cash taken from your pockets on a promise they would pay you back over the long term? What proof have they showed you that they are already taking care of those outstanding bills? Is it reflected in their current credit reports or is it something they just 'started' paying back? I believe in helping those getting back on their feet and heading in the right direction, but I don't want to be the test case if they are heading down the right path. i prefer my tenants to already be on that path so I have a general preference of a 5 year look back for common risks like credit and housing history.
I don't always agree that charging a higher security deposit is always the answer. In this case, I would require a perfect co-signer. I'd make prospective tenant show me that someone already believes in them in their current situation. Anyone can agree to a higher security deposit but it harder to find someone to back up any financial irresponsibility.
Don't change your criteria to justify accepting a poor tenant. Be patient and you will be rewarded with a great tenant.