Real Estate Investor · Toledo, OH · Member since 2008 · 234 posts · 53 votes
Well guys we have a tenant that got some sort of settlement. She's about 40 and told us upfront that her credit is not good. She was right. I ran it and it's not. She apparently is suppose to go back to work for this one company in a couple months. I think she has a workers comp or some sort of accident settlement. In any case, hubby wants to go ahead and rent to her. I'm nervous, but her paying a year upfront doesn't sound too bad. That's about 8k. She's suppose to meet with hubby tomorrow and bring a check.
Would you all take the year in advance from a tenant with bad credit? Good thing is she has no evictions from what the report showed, so that did make me feel better.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
17y
I would take it for sure. About 9 months in I would start to have a discussion on where she is at about paying month 13 - meaning - I would start to plan early just in case.
I agree with Niman I would require a full security / first / last etc...whatever your local law allows you to collect - I would go for max just in case.
Real Estate Investor · Toledo, OH · Member since 2008 · 234 posts · 53 votes
17y
I'm so irritated right now I could choke my husband. Anyway, the gal who was willing to pay 1 year in advance met with him tonite. He had called her last night and she said paying the 1 year wouldn't be a problem and she sounded very excited. Well, tonite she tells him that she can only pay 6 months in advance because she needs to buy furniture. He said no and the best he could offer her under the circumstances was 10 months. She agreed and wrote a check for almost 6k.
Now, why am I so peturbed by this? For one he didn't call me to consult. Second, this is a guy who is very business savvy and has always taught me to walk away from a deal. Then he compromises. I guess I'm just disappointed. I think this gal would of paid the 1 year if he insisted. He says he doesn't know if she would of but she was positive on the phone last night...uhhg! So in any case he is in the dog house....at least until he cuts me a check for 3k (HALF!!) LOL! :mrgreen:
Real Estate Investor · Toledo, OH · Member since 2008 · 234 posts · 53 votes
17y
I need to add that I don't want anyone to think I'm ungreatful. I mean 10 months upfront is awesome! I guess my disappointment comes from the fact that I worry if the gal saw that my husband (aka landlord) compromised when he already told her due to her credit we'd require a 1 year upfront, that she'll think she can pull one on him down the road.
Anyway, I am indeed grateful for the money and the knowledge that we won't have to worry about collecting rent for the next 10 months.
Just had to clarify so you all wouldn't think I was a ungrateful spoiled brat (:
Real Estate Investor · Hurst, TX · Member since 2008 · 76 posts · 10 votes
17y
Hey, Kel, don't feel bad. Mine's in the dog house, too. We recently evicted the "adult entertainer" who my husband rented to without my consultation. He put up the for rent sign last week and we got numerous calls right away. A nice young, clean cut couple with a two-year old is very interested. I thought "Yeah, perfect tenants!" Hubby brought the app home tonight. She's divorced and just started a new job this month. My husband assumed the man with her was her husband. So I asked him if he asked her if the man was going to live there, too. We need an app from him, also. Nope, didn't ask. Now I have to call her and ask all the questions he should have already asked. Like, why does your emergency contact's last name match your current landlord's last name? Are you currently living with your parents? Does your boyfriend currently live with your parents? Can you really afford the rent, utilities, etc., after the two of you get into a fight and your boyfriend moves out? Men!
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
17y
Even with her changing to 10 months, that still doesn't sound bad as long as you get what you want for deposit. I would also stipulate that you can do quarterly inspections to see how well she is maintaining your property. If after three months you see things are left in bad shape, that should give you a good indication of what kind of tenant she will be.
Bellevue, WA · Member since 2008 · 40 posts · 0 votes
17y
This may be totally unrelated to your situation but I have heard about marijuana growers who do this. They pay in advance for many months, then change the locks and turn the house into an indoor growing operation. Screws up everything. Google around to find more info.
Real Estate Consultant · San Francisco, CA · Member since 2009 · 94 posts · 28 votes
17y
Originally posted by Kel S:
I'm so irritated right now I could choke my husband. Anyway, the gal who was willing to pay 1 year in advance met with him tonite. He had called her last night and she said paying the 1 year wouldn't be a problem and she sounded very excited. Well, tonite she tells him that she can only pay 6 months in advance because she needs to buy furniture. He said no and the best he could offer her under the circumstances was 10 months. She agreed and wrote a check for almost 6k.
Now, why am I so peturbed by this? For one he didn't call me to consult. Second, this is a guy who is very business savvy and has always taught me to walk away from a deal. Then he compromises. I guess I'm just disappointed. I think this gal would of paid the 1 year if he insisted. He says he doesn't know if she would of but she was positive on the phone last night...uhhg! So in any case he is in the dog house....at least until he cuts me a check for 3k (HALF!!) LOL! :mrgreen:
WOW!!!! I wouldn"t want to be in his shoes. :wink: