Which tenant to choose

Question

I recently had a lot of interest in one of my houses during a showing and received a couple of applications from some qualified tenants and I am trying to make the right choice and wanted to get the opinions of the bigger pockets forum:

Applicant #1 - a couple that was incredibly enthusiastic about the property, filled out the application and gave a security deposit at the showing (I told them I didn’t want it until I screened the application, but they said that I was free to tear it up if I went another direction, and they just wanted me to know they were serious. One is a self employed contractor with a verified income of about 7x rent the other is a yoga instructor with a verified income of 3x rent. Great landlord references. The contractor has mentioned his handiness and ability to do maintennace as a potential benefit, I’ve heard that this isn’t necessarily a positive. One has a lower credit score due to having almost no credit history, but absolutely no delinquent payments. The others has good credit. They are willing to sign a two year lease.

Applicant #2 - three graduate students that are looking to sign a 3 year lease. They each have fairly low wage jobs, but are well above the 3x rent level. They are young and have been living in dorms, so their rental history and credit are not established, but have good references from their schools in terms of their tenancy in dorms (for whatever that’s worth). The benefit for this group is clearly the three year leaden term.

Applicant #3 - a Doctor and his working wife that want a 1 year lease. They make plenty and have good credit, and good references honestly not sure why they’re renting. They are currently my lowest priority just because I’m sure they’re going to leave afternoon one year to buy a home.

I’d love to hear any advice from the forum.

David Zheng · Answer

I also would go with tenant #1, but do some more googling and social media searches on both of them. Make sure they also have good employment history meaning check out older tax returns. Ask to see some of the work for the contractor just cause too :)

Christopher Finn · Answer

@Max Briggs

I'd go with applicant #1, their credit, his work background, the references, and the 2 year lease would seal the deal for me.

Thomas S. · Answer

"non-discriminating reason to decline applicants."

It sounds almost like you are afraid to do the job.

As long as you have non discriminatory guide lines for screening you can never be convicted of discrimination. Anyone at any time can accuse you of discrimination regardless. If I were more qualified than the applicant you accepted I would want to know why you discriminated against me since I should be the obvious first choice over a less qualified applicant.

As for accepting the first qualified that is not proper screening practices. You screen to find reasons to reject applicants not to accept. Choosing the first qualified over the best qualified not only places you at higher risk it also does a disservice to all other applicants. You are not mitigating your risk you are throwing darts at a board.

Thomas S. · Answer

Congrats, nice you came back to report. Only advice I would give is to never give rent reductions. Maintain full rent and pay tenant for work. This keeps your business "clean".

Thomas S. · Answer

"I would still put them above choice 3"

Is that because of the 2 year lease, if so you may be disappointed and should disregard the lease offer in considering their desirability. A decision on a 2 year lease will be a mistake since I believe they are going to be very difficult tenants. Guaranteed he will want to trade work for rent. Do work without permission, not pay rent on time etc. Term leases only benefit tenants, long term leases are not a guarantee of how long a tennat will stay.

Max...take #1 and come back in 6 months and let us know how it turns out.

JR T. · Answer

#1

Thomas S. · Answer

Unlike others I would be hesitant of applicant #1. Red flags....Overly enthusiastic applicants offering to do maintenance work is usually used a s distraction hoping a landlord will over look something. I would be extremely cautious in doing a back ground check to confirm previous landlords. Do a internet search on both their names and the company. I also do not like the offer of a 2 year lease, another red flag attempting to lull a landlord into not doing a thorough search. #1 is sending off bad vibes.

Maybe on grad students, they are usually fairly solid, definatly not on a 3 years lease. I would sign a one year with students.

I like the doctor, no hidden bad vibes, I also like the one year lease. Generally I would prefer M2M when renting to strangers but feel positive about a one year with a Doctor.

Contrary to other landlords a long term lease is not a positive in my books. They will stay exactly as long as they stay regardless of a lease. A long term lease offer is basicly a hidden bribe for nieve landlords. Long lease allows your tennat full control over a property with the ability to still leave whenever THEY choose. I do not fall for that trick.

My choice would be #3 hands down with a distant second choice being the students.

Lauren Keen Aumond · Answer

#1 for the reasons others mention above.

Steve Vaughan · Answer

You didn't mention smoking or animals, so all being equal I'd go with #1.

Docs and nurses tend to be upper crust picky. Roommates are a dramatic reality show waiting to happen.

Always ask of anyone smokes and how many animals they have!

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