Real Estate Investor · san francisco, CA · Member since 2011 · 19 posts · 0 votes
I am renting my newly purchased sfh and really need your advise on picking the tenant. Both is ready to move in this Saturday oct 1.
Applicant #1: the couple with 2 kids and a dog. Combined income is 2x monthly rent. Great references. Seems really nice people. However, one of them is illegal immigrant. They are going to commute over 1 hour to work after moving in. So i am afraid that they may only stay for 1 year and move back.
Applicant #2: high income. Both working, 3 years, 10 years at the job. Couple with 2 older kids. One filled chapter 13 bankruptcy 2 years ago because of 2 years unemployment. The Other filled bankruptcy 1 year ago helping out the spouse. They rent the same apartment for last 7 years. Likely will be long term tenant.
Or maybe wait for one more month to find better tenant.
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Neither. In my opinion an honest analysis of both candidates points to finding somebody else. While the idea of getting the vacancy filled is very nice, the potential problems you will encounter could make your life very difficult. I would have to pass on both potential tenants and hold out for someone that meets all requirements (the loss of rent may hurt short term, but the benefits of a great tenant will pay long term). In my opinion, keep looking and you will find the right tenant.
Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
15y
I don't care to be a landlord.
#1 would be out definetly for me. Two times the rent is not enough income.
#2 sounds a little risky but better.
#3 I don't think another month vacant would hurt to try and find one you are comfortable with.
My experience with landlording was a 297 unit apartment complex in Houston over 25 years ago. I had to get out because nobody qualified in my mind. (still wouldn't)
Don
Real Estate Investor · College Station, TX · Member since 2011 · 105 posts · 18 votes
15y
For me personally there is no way that I would intentionally do any business with an illegal. I REFUSE to contribute to our nations problems.
#2 doesn't look too bad as long as the income is there. I would go with them and make sure they know that you are serious about being paid. If they have been in the same apt for 7 years they obviously found a way to pay their rent during hard times. They could turn out to be the dream tenants. Lots of income but no credit for a loan of their own.
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Neither. In my opinion an honest analysis of both candidates points to finding somebody else. While the idea of getting the vacancy filled is very nice, the potential problems you will encounter could make your life very difficult. I would have to pass on both potential tenants and hold out for someone that meets all requirements (the loss of rent may hurt short term, but the benefits of a great tenant will pay long term). In my opinion, keep looking and you will find the right tenant.
Residential Landlord · Indianapolis, IN · Member since 2010 · 592 posts · 138 votes
15y
Neither, 2x monthly income doesn't qualify, recent bankruptcy doesn't show financial stability. Keep looking, most landlords who have a bad experience being a landlord it is because they have bad tenants. If you have had it on the market for a while and these are your only applicants you may need to reduce your asking rent or offer a concession.
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
15y
Are these your only 2 applicants or the best of the worst? I was in a panic with my first rental property too but it's better to keep taking applications and/or lower the rent and offer a concession as Kyle said. Lower rent doesn't always mean lower quality tenants. I've gotten 2 great tenants by lowering the rent (compared to similar properties) by $50 and $100.
Real Estate Investor · san francisco, CA · Member since 2011 · 19 posts · 0 votes
15y
Thank you all for your feedback! I decided to wait.
The illegals: I asked them all sort of questions before they told me one of them is illegals.
I have just checked out the bankruptcy people - very glad I did it. No to them.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
15y
Keep in mind that you cannot make a decision to rent to them based upon the number or age of the children, so I would avoid any posts/comments that indicate you are looking at it.
This is San francisco. Illegals aren't illegal there. In fact, you might want to research the legal ramifications for exposing an illegal alien there. You may get sued for discrimination.
Indianapolis, IN · Member since 2008 · 244 posts · 36 votes
14y
Are you getting a lot of traffic? What type of area is it in? I would go with #2, most tenants have filed bankruptcy or had been foreclosed on or have bad credit. Or... let it sit empty.
Real Estate Investor · san francisco, CA · Member since 2011 · 19 posts · 0 votes
14y
I feel disappointed that I didn't rent out for the October 1st and have to continue the process of finding a tenant. Thanks brian for your encouragement. Thanks Marc for pointing out the age of children on my first post. The house is in a pretty nice area. I don't know how to classify the area like some people did A, B or C. The applicant #1 decided to take another house before I made my decision, but didn't inform me till after my post. Applicant #2 is a NO because other issues I found out later. I am very glad I did a thorough check on them.
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
14y
Having a non performing tenant in your property is far worse than letting it sit empty. My first two rental properties several years ago were both vacant for 3 months after I bought them. One of the tenants that I took out of desperation had to be evicted and caused several thousand dollars in damage. It's not cheap to have an empty rental, but the wrong tenant can cost you so much more.
Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
14y
Originally posted by Phillip Gainey:
This is San francisco. Illegals aren't illegal there. In fact, you might want to research the legal ramifications for exposing an illegal alien there. You may get sued for discrimination.
PG
Ain't life grand? No one will pull my fanny off of the 6 o'clock news if I get caught with illeagle aliens. But, proving they are legal is very delicate matter too.
Don
Real Estate Consultant · Fredericksburg, VA · Member since 2011 · 11 posts · 1 vote
14y
I'm not sure what kind of marketing you are using but hiring a property management company will get you a lot of exposure and for their fee, they will screen applicants for you.
I know they charge 15-20% a month but that way your freeing up a lot of your time.
But, if being a landlord is all you do then I can see why you wouldn't want to spend the extra money.
Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
14y
I have no problem with tenants that have filed bankruptcy if it was because of a failed business or medical bills. I also don't mind if they have been foreclosed on. Hell, I think most of the increased demand for rentals is from people who lost their homes due to foreclosure. What I don't like to see is collections for department store cards or phone bills. The most important aspects are sufficient income and stable employment.
p.s. Always remember not to discriminate against protected classes.
Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
14y
Originally posted by Phillip Gainey:
This is San francisco. Illegals aren't illegal there. In fact, you might want to research the legal ramifications for exposing an illegal alien there. You may get sued for discrimination.
PG
Wow. That's crazy. How can you discriminate against an illegal? I'm glad I'm not in a crazy liberal state like Cali.