Hypothetical : Should I consider this rental application?

Question

Hi everyone hope all is well,

Hypothetical : I received an application from a person that admitted breaking an apartment lease 6 years ago, but since the application doesn't say "no broken leases" on it, he wants his application to be considered.

This is a 2 bedroom house, the bedrooms are small. He is planning on moving in his girlfriend (non-working student), and 3 small kids.

I'm worried that this house is going to be too small for them and can see them leaving sooner than/ staying longer. Also, since it is 3 kids and only one income I can see the potential for issues (of course I could be wrong).

I appreciate your advice on this.

Lisa S. · Answer

Hi @Luke H.

I think everyone has great points!

I worked in multi family for apartments in property management over 15 years. As a property manager my leasing agents would bring me applications where an applicant has broken a lease in the past.

I would advise my leasing agents to ask the applicant to provide a letter on letterhead from the previous management company where they broke their lease proving their balance is $0.00 owing no outstanding balance.

If they had any outstanding balance we would not lease to them until they have taken care of the outstanding balance.

If they paid any outstanding balance then that says a lot right there that they did not just break the lease and leave the management company high and dry with a balance. They took responsibility despite breaking the lease. This is where we would give them the 2nd chance to lease an apartment.

People do have real life situation that happens that causes them to have to break their lease. I saw it all the time with my residents who had to do the same. I do give your applicant some credit for being honest about their past rental history.

Our standards was always 2 heads to a bed. Check to see what the laws are with occupancy numbers.

On the income side there were many people we leased to that only had one income. For the most part we did not have any issues unless they fell on hard times because we would ask them for the proper documentation upfront to make sure they made at least 3x the rent monthly.

There were other application criteria that they did have to pass but I just focused on your main concerns.

There are great companies that you can use to screen your applications to make it easier for you to be confident you are renting to qualified renters. It also removes any emotions that you may have towards the situation and stick to the qualifying criteria.

Going through the eviction process is never fun. We filed on anywhere from 5-15 people a month. Some paid before court, eviction day, or just moved out. Then we go back through the process of finding qualify renters. It's all apart of the industry.

Ultimately, trust your intuition. Just wanted to share this with you to see if this would help you through your application/qualifying process.

Good luck!

Matthew Olszak · Answer

Every application submitted is considered as-is. One of my first criteria is that it is filled out in full. If not, I'm not calling to get the missing info, application is denied based on being incomplete, and they can resubmit if the unit is still available. Your criteria should consider rental history- "Have you ever broken a lease, been under eviction proceedings, or owed any sum to a previous landlord after moving out?" Not "DO you" but "HAVE you EVER"

As to your immediate situation - what do your local occupancy laws say? If 2 adults and 3 kids fit within that occupancy, you CANNOT deny the application based on that as you can get knocked with a fair housing violation for discriminating against familial status. It doesn't matter what you think 2 adults and 3 kids will live comfortably in, it matters what the law says the max is for safety. Equally, the 3 kids w/ single income doesn't matter, you can only base income on a per-adult or per-household basis.

This is a good example of why your rental criteria should cover as many situations as possible. Even though you might want to not rent to them based on familial status, they are easily denied based on a breaking a prior lease (which I don't recommend if you have a low-B or C property). And that isn't an item that will exclude almost everyone of a certain class. However if they pass all of your criteria but have 3 kids, you shouldn't worry about it, they live there and not you, so they are most well-equipped to decide if a unit is of proper size for their lifestyle.

Matthew Paul · Answer

He will move in with the girlfriend and her 3 kids . they will get into a fight , he will leave . Then you will have a mom who doesnt work with 3 kids playing the sympathy card .   Once you file for eviction she will file complaints about the place how its a dump , her kids ate lead paint and you are harassing her .

Or it could work out just fine .

Take your pick

Rob Rothman · Answer

A two bedroom home is large enough for a total of 4 people, no more. If you get an inquiry from someone who has a less-than-stellar rental history screen them, then decide based on the screening report. Place an emphasis on the results of the credit report before you consider their income. Income isn't a guarantee that they will pay the rent, but a good credit score (650 or higher) usually is. If they handle their finances responsibly, they will usually pay the rent on time.

Brian R. · Answer

I would not rent to them.  I have a rule, no more than 2 people per bedroom, as does one of the cities that I have a property in.  Your city may have the same rule.  I see too many problems with these people.

Rob D. · Answer

If everything else is perfect I would offer a month to month lease and a the max security deposit allowed by your state. You can give them a guarantee no rent raise for 12 months. This way they feel better about you not raising the rent for 12 months but if they get stupid you can wave good bye 30 days later

Thomas S. · Answer

I would accept their application and then reject it when a better applicant is found.

No I would not rent to them since they are a poor fit for the property and the girlfriend creates a high risk situation.

It may work out but your function in screening is to reduce your risk factors. This applicant is a high risk that you definatly want to eliminate.

Michael Noto · Answer

@Luke H. Run a complete credit, criminal, eviction check on all applicants over the age of 18 living in the apartment. Also collect their proof of income. Until you have all of this info in front of you it is a complete waste of your time thinking about hypotheticals.

Make sure you have minimum screening requirements you are passing along to perspective renters before they apply as well.

Fred Heller · Answer

The state and sometimes your city have statutory occupancy limits. I've always heard 2 adults and 1 child per bedroom. Regardless of the statutory limits, you have the right to impose your own. 2 adults and 3 kids for a 2BR rental seem like an awful lot to me. I would probably pass.

Hypothetical : Should I consider this rental application?

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