Which person to rent out?

Question

Hi,

I have a person that wants to rent out my house. She only has money to pay for the first months rent. She just moved here from another state and she doesnt want to pay hotel. So she doesnt have a job but she says her daughther will help her. She basically makes $8 per hour she was a babbysiter for 2 years. So she say she can afford rent and she is applying everywhere . She will come up with the deposit in 2 weeks.
1. should i rent it to her?
2. if i rent it to her how hard is it to kick her out if she doesnt pay rent?
3. i heard it is hard to kick people out... is that only if they pay rent? (you ahve to pay them 30k? to get them to move out?)
4. if they dont pay rent is it easy to get them out? what are my options?

I have another guy who is a bounty hunter he says he has the money he wants it for his fmaily he is moving from another state

4. should i rent to him? what are your thoughts.. he has no felonies.. i think others dont want to rent to him because he is a bounty hunter.

Awaiting your feedbacks.

Thanks

Bienes Raices · Answer

Well, you have your way of doing things, and I have mine. You stated in an above post that you've already had one problem person whom you had to return a deposit to. I don't know the circumstances of that case, but when I get someone who turns out to have a serious criminal history, or to be a con artist, I want to mail a rejection letter and forget about them--I don't want any further contact with them to return a deposit or potential disputes about a deposit.

Jonathan Sher · Answer

Judy, make sure you read up on fair housing rules, and make sure you identify your criteria for what approves someone to your standards. Do you have an application you have people fill out? This will help you obtain salary information, current and past work information, SS# and information to run credit and criminal background checks and information to verify their employment and past rental history. Kicking someone out isn't neccesarily hard, but is expensive and can be labor intensive. The last thing you want to do is have to kick someone out...

On here you will see a lot of landlords require the persons gross monthly income to be a minimum of 3x the rent. People also have specific credit scores and criminal backgrounds they will accept and reject Etc. Picking the right Tenant is EXTREMELY important. It can make or break you!

It sounds like the "Baby Sitter" has no current job. How can you be certain she can find a job? What will you do if you put her in your rental, she stops paying rent and starts crying to you on the phone saying she has no where else to go with her children on Christmas Day? Just food for thought, renting is a business relationship, not a charity.

Bienes Raices · Answer

^ Well, that is what I mean about different things working in different areas. I get tons of people from craigslist--it is a lower middle class neighborhood. I get a fair amount of people who only speak Spanish as well.

I take the non-refundable deposit too, to hold the place. I just wouldn't want to take a refundable deposit before the application is approved and then return the deposit if the application doesn't get approved. It's not just people doing something illegal--there are people who have ripped off another landlord so they have extra cash they can throw at you because they think they can buy their way in. It doesn't happen all the time, but I've only been doing this 1.5 years and I've run into several of these people.
But having said all that my experience is not your experience, my area is not your area. Some things work better in certain situations. Other things--like sticking to what's in the lease--work universally.

James H. · Answer

That's interesting that the sign in the yard doesn't work for you as it is contrary to almost every post I've seen here. I don't know what kind of property you have, but I expect to screen through a lot of losers. CL doesn't generate jack for my property but I get about 15 calls a week from my sign. This property is in a low income area, but I wouldn't consider it a war zone because I feel safe there even at night. More than half of my applicants probably don't have internet. Also more than half (not necessarily the same half) don't speak English. Luckily we do because it is a hugely under served market.

This is what's useful about the deposit(in my opinion):
Most people's leases end at the end of the month, but people view the property throughout the month. If I find a candidate that likes the property and that I want to approve on, say, the 12th of the month, but they can't move until the end of the month because they just paid rent for the last month of their lease, I would like to hold the house for these responsible people. However, I don't want to hold it for free. So that is the useful part of the deposit. If they change their mind, I keep the deposit.

That being said, I can understand about not wanting to contact denials except with a letter. After thinking about this, I may change my policy to only accept the deposit to reserve only if the applicant is approved. But still, seeing that they have money does help with my decision, especially with the demographic I am working with. I am not too concerned that I will get duped by a drug dealer or whatever like you brought up. Once upon a time, I lived in the same trenches my potential tenants (even the losers) live in. I know a drug dealer when I see one and I am a pretty good judge of character of the people I am dealing with. Now if I had a nicer property, I might have a more difficult time discerning who was right for my property. But I'll worry about that when I get there.

Bienes Raices · Answer

^ Maybe so, but if I try something that's recommended in a book (or on here), and find it isn't working or useful in my area or situation, I drop it. For example I tried using the "for rent" sign in the front yard and didn't care for the low quality applicants it consistently attracted, so I stopped using it and stuck with craigslist. Other people may have had better luck with the sign, so they keep using it.

James H. · Answer

I downloaded the form form Bigger Pockets and it is at the end of the rental application that Joshua Dorkin posted for everyone to upload. Since I am new I am going with tried and true methods, not what "feels" right.

James H. · Answer

Look bub, nobody is telling you to change your deposit practice. You asked so I told you. If you want to discourage people with money from your properties, I won't stand in your way. If you think somebody having the deposit money a couple weeks in advance makes them likely drug dealers, who am I to change your mind. As I said, what I do is typical common practice in my market.

Bienes Raices · Answer

I have had several people who seemed to have lots of money on hand whom I wanted nothing to do with. One of them said they received large "disbursement checks" every month (I found out later the person was arrested for selling a a large amount of pot). The last thing I want to do is give encouragement to these types of people.

James H. · Answer

"This seems like it could just encourage people who have no realistic chance of being approved"

Rather, it helps discern who is serious and has money apart from the rest.

James H. · Answer

It is common to take a deposit to reserve a house or apartment in my area. The guidelines are clear: If your application is approved and you move in (after paying first month's rent), the deposit converts to your securtiy deposit.If your application is denied, your deposit is refunded.If your application is approved, but you change your mind and don't move in, the deposit is NON-REFUNDABLE.

This way if you have someone who wants to rent your house, but they can't move in for a couple weeks, they can still reserve the house as you would want to do for a qualified applicant. But if they change their mind for whatever reason, you keep the deposit and don't loose the money you could have possibly made renting to the next qualified applicant. If they are not approved, they get their money back. It is simply a way of keeping them invested in the process. This is hard work, I like to see that they have some skin in the game too.

You also have a better idea of how serious the people are which can help making an approval or denial if you are on the fence about whether or not to approve an applicant.

Also, there is no bait and switch here regarding the app fee either. We hand them a copy of the written criteria and tell the verbally what our expectations are.

Which person to rent out?

Which person to rent out?

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