Applicant recently divorced with bad credit

[Fredie Robinson]

Hello all,

I finally finished the rehab on my first deal and put it up for rent yesterday. My question is I have a lady that is recently divorced and has bad credit that wants to rent my house. She has a steady job (working for a property management company, ironically), has 2 kids that she wants to keep in the same district they are in now, and wants to stay at least 4 years. I asked why she wasn't staying in her house and she told me Wells Fargo wants a 10K balloon payment in order for to keep her house. I'm not sure how true that is but should I just pass on this applicant? She lived in her current house for 13 years until her husband wiped all the accounts clean. She has enough for all the fees/deposit/rent. I would just hate to get burned on my first rental.

[Linda S.]

@Fredie Robinson,

A M2M gives you, the landlord security.    If she doesn't pay 1 month, you let her know you are not renewing next month, and give her a 30-day notice.     This is MUCH easier than a full eviction.   M2M gives the landlord better protection.    IMO I'd tell her she cal stay as long as she wants, as long as she pays she can stay!      

I would suggest M2M because say the bank goes after her, and she has to file bankruptcy and can't pay, you're legally stuck with her for 2 years, and then would have to go through the eviction, not to mention say you find out she's a horrible tenant-- 2 years with a bad person could really suck!