Rental Property Investor · Ocala, FL · Member since 2018 · 48 posts · 35 votes
I'm in the process of renting out my second property. I've had a few interested parties but nobody who actually put in an application yet.
The only couple who's ready to put an app in is an older couple and their only source of income is the husband's disability payments.
I'm not familiar with disability, but the only proof they can provide me is some old, wrinkly piece of paper that describes the benefits. When I asked for bank statements to prove the amount actually being deposited, they told me that they receive them on some sort of preloaded debit card and they don't have a way of showing it.
I don't want to disqualify them, but without proof that they can actually meet the 3x rent monthly income how can I check if they can actually afford the house?
Don't waste your time on them. Tell them what you need in the form of actual proof, income taxes, deposits etc. and leave it to them. When applicants are not straight forward and easy to screen they are not worth your time. Applicants must prove they are worthy, not your job to do it for them.
Tell them to come back when they have the records necessary to prove income.
I wonder if you can get in touch with their case worker to verify the benefits. I'd be shocked if they didn't get a monthly statement that they could show you though... You're right to be skeptical without better proof.
Don't waste your time on them. Tell them what you need in the form of actual proof, income taxes, deposits etc. and leave it to them. When applicants are not straight forward and easy to screen they are not worth your time. Applicants must prove they are worthy, not your job to do it for them.
Tell them to come back when they have the records necessary to prove income.
The government negotiated a deal for a "prepaid debit card" called a Direct Express card with Comerica Bank to provide benefits to "unbanked" recipients on social security, disability, us coast guard retirees, and some others entitled to federal benefits. They did this because many commercial "prepaid cards" were charging recipients of government benefits (and other users) really egregious fees. Unfortunately, these cards do not permit ACH debit transactions which require both bank account and routing numbers. Most of these "unbanked" people have been screwed over by banks in the past and don't really want a traditional bank account. Since I require online payment and ACH debit transactions cost .50 and visa/mc transactions cost 2.75%, I am currently suggesting that these tenants switch to an online bank (I liked simplebank.com) to avoid high fees.
I don't have a problem with tenants that receive disability payments. I have a problem when they receive several , or many governments benefits. If they can't provide proof of the benefit I would let them apply some where else. If they provide proof of income that meets your requirements then screen them like any other applicant. Realize they if you evict them it will be impossible to collect back rent or damages.