Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

16
Posts
11
Votes
Josh Thomas
  • Rental Property Investor
  • Dallas, TX
11
Votes |
16
Posts

Fire Time Landlord: Would You Rent to These Tenants?

Josh Thomas
  • Rental Property Investor
  • Dallas, TX
Posted

Hello All,

I just received applications for our first tenants ever. They have passed all of our screens (criminal, credit, etc) and in general, I feel good about it. But there are some quirks:

• It is 4 people total. A couple, plus two others that are not related. I think they may all be friends from "back home" This is in Denver, btw.

• They are young. 23, 23, 24, 24 y/o and working entry level jobs. A few of them are college grads, and a couple may have dropped out. Not 100% sure. Collectively, I think they cover 4x-4.5x rent amount. We are trying to get another guarantor, like a parent, especially if they are still in school.

• All have Good+ Credit but one, who is still currently behind on surprise med bills in collections. He wrote quite an authentic letter, and has recently worked out a payment plan with them, but was still late Dec/Jan bills. Seems like a good person that had some bad luck. I've actually been in the exact situation before.

My PM likes them and without having met them myself, I feel like it should be ok. We plan to rent to the under one lease, so if one goes down, they are all still responsible. That said they are young, and our house was completely renovated 2y ago. So part of me is terrified they will turn out bad and f-up my place. Always a risk though I suppose!

Would you lease to them? If you did, are there any caveats? Any tips, or specific legal clauses, or lease structures you recommend to keep my best interest protected?

Thanks in advance all! Cheers!

Most Popular Reply

User Stats

1,240
Posts
3,065
Votes
Terrell Garren
  • Rental Property Investor
  • Concord, NC
3,065
Votes |
1,240
Posts
Terrell Garren
  • Rental Property Investor
  • Concord, NC
Replied

Hard pass.  Too unstable. Four different lives means four X reasons for the lease to be broken.  I can imagine what will happen when their friends visit or damages are assessed.  Not slamming all 20 something year olds.  I was one once and I remember...most of it lol.  If it were a beat up Class C, ok.  Not a newly renovated house though.  BTW, your PM will likely rent to anyone that passes a screen and can fog a mirror. 

Loading replies...