Renter Qualifies, Wants It Unseen, Contract Worker, Out of State

General Landlording & Rental Properties
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Renter Qualifies, Wants It Unseen, Contract Worker, Out of State

Chris S.
Gettysburg, PA · Member since 2014 · 73 posts · 9 votes

Hello, I have 7 rental properties right now (I'm not extremely seasoned in finding renters) and on one of them we have an applicant from another state that wants to rent the house unseen (just from pics on Zillow).  The husband would be coming here for a contract position and the wife would be getting a job here (that's not set up yet).  

Their current income meets our requirements, but since it's a contract position that ends in 4-6 months, I'm wondering if they'll be able to pay.  They said they would pay 7 months up front (of a 7 month contract), plus 2 months security, to make it easy.

The whole thing kind of seems like the perfect storm for an internet scam / bad story.. ha.  I'm not sure how I could lose money here, but I figured I'd run it by you guys quick..  Thanks!

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Sai T.
Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
9y

@Dustin Lavender

True, When they want they show a lot of desperation then suddenly they take U turn and disappear like they don't exist!!!

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  • Sai T.
    Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
    9y

    If you think a scam then do Viedo call 

    1Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    Hey @Chris S. , you said "I can't see how I'd lose money here..." You could lose money by them moving in, and then trashing the place or moving in, he loses his job and can't get another one and in 7 months, you have to start the eviction process. 

    Upfront money sounds awesome, but can lead to hassles down the road like having a more difficult time evicting because of the prepaid rent, and tax issues such as claiming it the year you receive it instead of the year it's applied. There are also some states that limit the amount of money you can collect upfront, or require you to pay interest on it.

    Not to mention why do they need to prepay? Some prepay because they are bad with money and have come into some and want to make sure their rent is paid. Well, when the prepaid time runs out, how are they going to come up with the money?

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    1Reply
  • Gail K.
    Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    How far away are they coming from?  Do they have someone local who can view the property for them?

    We no longer rent properties to folks sight unseen.   Did that once to a young military couple (a military base is close to one of our houses) coming from across the country.  Dealt mainly with him but both seemed excited to have a house when they hit the area.

    Until they hit the area.

    He was happy with the place. 

    She wasn't in the house 10 minutes when she started complaining she didn't like the neighborhood (which was simply a quiet neighborhood with large lots and good sized homes), didn't like the fixtures in the bathroom, didn't like the fact the countertops were not granite, didn't like this, didn't like that.   By about the fifth "didn't like" I was ready to tell them "let's cut the crap and stop wasting my time; get out of my house".  

    I was angry because I had held the house for them; something I decided NEVER to do again.  Now if someone wants to rent it based only on pictures they've seen in the ads I tell them nope; they've either got to see it in person or have a friend/co-worker/relative view it for them and report back to them.

    I can understand these folks wanting both to rent it unseen and paying up front because, honestly, many landlords would not want to accept someone who may only be here for 7 months bringing the possibility of an empty rental into the winter months when it can be more difficult to find tenants.

    Gail

    1Reply
  • Chris S.
    OP
    Gettysburg, PA · Member since 2014 · 73 posts · 9 votes
    9y

    Fyi, we decided to give them a shot.. 

    We held the house for him, we didn't respond to other requests and when it came time to pay, the guy said he wanted to drive the deposit down instead of just venmo'ing it (5 hours both ways) and tried to make us feel like we were inconveniencing him.  My wife got a bad vibe from him and just told him to forget it.  We rented it last night to a great couple w/ 700+ credit each..

    I think we're going to make it a point to not do it sight unseen moving forward..

    0Reply
  • Sai T.
    Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
    9y

    Lesson learned 

    1Reply
  • Dustin Lavender
    Investor · searcy, AR · Member since 2016 · 147 posts · 111 votes
    9y
    Chris S. we never, ever hold a property for anyone. We did at first, but then often times they sound convinced on the phone and change their mind when they get there leaving you high and dry, most time having turned someone else away. Now the rule is, if you want it, show up first and pay for it.
    1Reply
  • Sai T.
    Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
    9y

    @Dustin Lavender

    True, When they want they show a lot of desperation then suddenly they take U turn and disappear like they don't exist!!!

    2Reply
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