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Updated almost 6 years ago, 12/23/2018
Prospective tenants in a rush to move: what to look out for?
I have a prospective tenant that is eager to move b/c he is living out of a hotel now (in the midst of a divorce; divorce hasn't finalized yet).
He hasn't started the application process yet but when I mentioned cost to move in + presenting 2 pay stubs and 2 bank statements, he didn't seem to wince (though, we were speaking over the phone).
His income, credit score, criminal history, eviction history still hasn't been verified/checked.
But I'm still new to this and I don't know if tenants in a rush to move can cause problems later... In your experience, can they?
@Jihan Shareef. Search the county records for property search. Should have house and car taxes. If your county has that. Good luck.
@John Hovanec Thanks! I was actually on the property search website for the county earlier but didn’t think I could find it there so I quit it. I’ll check again!
@Account Closed Never let the prospective tenant make their problem yours. Take the necessary time to check him out and don't skip any steps. Life happens to people and he mighty be ok. On the other hand he might reconcile with his spouse and not be a long term tenant. Good luck
I own in a market where there is very little vacancy, so almost everyone is in a crunch to move. In my opinion, the more desperate/ in a hurry they are, the more disqualified they are! Hope everything works out for you!
Someone who appears in need isn't necessarily a red flag, they may really be in need of finding a stable home quickly. You will spook yourself out thinking about what ifs. Set processes and follow them, don't worry about what could be, here are just some examples
Do's
Set minimum standards to rent your unit
Collect an application and application fee
Call references and verify them with an internet search of previous management, social media
Call employment and do an internet search to verify the number
Run the background and criminal check
Collect a deposit along with the first months rent
Never Do
Allow someone to move in without an application or app payment
Allow someone to move in before calling, or without references
Allow someone to move in before getting the background and criminal results
Allow someone to pay any portion of the rent of deposit at a later date - collect it all up front
Even if the person seems nice and has a situation you trust. ALWAYS run your due processes before letting anyone move in. Because IF they turn into a nightmare, and even good people can, or something comes up in your due diligence after the fact, you likely will have a much harder time getting them out than to have said "you don't qualify" - in the first place
Be empathetic, take the time to efficiently get through your process, but think very carefully before you make exceptions. Be careful not to stir up fair housing issues with refusing to allow him to sign a long term lease. If you only offer him month to month housing, be sure the reason is documented. You must be able to cite your minimum standards and how the tenant doesn't meet them. You can't offer only MTM because BP posts made you panic!
Have a solid process, follow it, stick to it, and trust it
@Eric Carr Thanks! If he ever gets back to me, I’ll make sure to continue with the regularly scheduled screening and application process!
@Tyler Bushey I see what you mean... Thank you!
Don't jump to conclusions and don't create a chilling affect. Treat all prospective tenants with respect. Trust but verify. Establish great rental criteria and screen thoroughly. After the prospective tenant applies to rent, then go to work with getting your background check and verification done in a timely manner.
Consider making MTM rental agreements your norm, as they will allow you to make changes to the rental agreement when you want to (anytime of the year) and will allow tenants to move when they want to move without drama and hassle. Happy Tenants = Long Tenancies. Our longest term tenant has lived in the same apartment for over 30 years on a MTM rental agreement. How long a tenant is likely to stay is dependent on how well the unit meets their needs and your management style, not whether they've signed a long-term lease or MTM rental agreement. Tenants will move when they need to move, regardless.
Originally posted by @Account Closed:
Thanks, @Account Closed!!! You're the third person to verify that this is a common scenario. I'll keep vetting him.
Another facet of my urgency to find a place to rent was my mindset. I came from the San Francisco Bay Area, where the number of places to rent or buy is significantly below the demand for them (which is why real estate prices are so high there, as other threads on BiggerPockets have discussed). Applying for an apartment means getting on a waiting list.
The market conditions for real estate in Pensacola are much more relaxed (Why You Don't Want to Move to Pensacola).
@Account Closed Facebook is another good place to check out the people. I used it as an additional screening.
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Originally posted by @Account Closed:
I have a prospective tenant that is eager to move b/c he is living out of a hotel now (in the midst of a divorce; divorce hasn't finalized yet).
He hasn't started the application process yet but when I mentioned cost to move in + presenting 2 pay stubs and 2 bank statements, he didn't seem to wince (though, we were speaking over the phone).
His income, credit score, criminal history, eviction history still hasn't been verified/checked.
But I'm still new to this and I don't know if tenants in a rush to move can cause problems later... In your experience, can they?
Wanting to move in a hurry is always a red flag. It's good to have concern when you've got a tenant in a hurry. Often it's a sign of financial irresponsibility.
However his story is also a very logical reason why an otherwise financially responsible person would be in a hurry.
See no reason to eliminate him at this time. Do the showing, run his credit, criminal etc...I'd probably also do some research on the county auditor site. If his story is true it's likely that he owns a home with his soon to be ex-wife. If he doesn't that's another possible red flag.
Scope out his facebook as well. I'd imagine you'll see evidence of his marriage on there.
Originally posted by @Account Closed:
If he doesn't get back to you, might be a good reason, just let it go and keep marketing
Marcia has good advice above, we agree here
I agree with the majority here that it could be a red flag. Check everything and don't leave anything to chance. A month-to-month lease at a premium may be a good idea. Sometimes people need to move quick and it's nothing, but you're better off making sure you are diligent about it. We just had someone who needed a rental quickly and moved in within 5 days or so, but it's because their house had burned down and the insurance is covering the rental for them. We got a check from the insurance company for security deposit, cleaning deposit, pro-rated December rent and full January rent. So it moved quick but we felt comfortable with everything.
Originally posted by @Account Closed:
I have a prospective tenant that is eager to move b/c he is living out of a hotel now (in the midst of a divorce; divorce hasn't finalized yet).
He hasn't started the application process yet but when I mentioned cost to move in + presenting 2 pay stubs and 2 bank statements, he didn't seem to wince (though, we were speaking over the phone).
His income, credit score, criminal history, eviction history still hasn't been verified/checked.
But I'm still new to this and I don't know if tenants in a rush to move can cause problems later... In your experience, can they?
On the one hand, this doesn't sound necessarily bad. I mean, living in a hotel, and just having gone through a divorce, is a tough set of circumstances, so he feels urgency, which is good. I like your screening requirements, income, financial docs, credit and income history is a must. I would not compromise on requiring him to provide you with all of those things, however much urgency he might feel.
However, I do have a story about an overeager tenant. Recently had a single family rental come up, and we had a woman (and her fiance) who were very eager to sign a long-term lease, and get started as soon as possible. We came to find out that they place they currently listed as their address, they were evicted from, less than a year earlier! Needless to say, we did not take them. The point is, due all of your due diligence, don't ever compromise on that. If a tenant cannot live with your process, and wants to rush things, move on, as they are not a good fit for you.
@Shiva Bhaskar If he follows up, I’ll be sure to go with my planned screening and application process.
@james
@Account Closed I’ll keep my eyes open.
Someone mentioned checking facebook and social media
There are things you might find out by checking, like maybe someone bragging about how they lied about a divorce, or that they have a family of 6 moving into your 1 bed rental instead of two people. But you must be careful how you handle information you find on Facebook - again due to fair housing laws.
@Jihan Shareef I had many of these stories in many years. Never rented them much less showed them the house. Waste of time.
@Jihan Shareef I would trust your gut feeling. Is it possible he lost his house to the hurricane in Wilmington NC? Better to ask questions than to speculate. Overall, trust your intuition.
Validate he has not been evicted from rental reference.