Class C Property Owners.... Pre-Set Qualifications????

Question

Scenario: You Own A Home, A Duplex In An Urban Area, The Property Is Considered "Class C"... The Area Has Some Riff Raff And You Know This.

It Is Time To Start Renting Out Your Property, Your Goal Is To Obtain A Good Number Of Applicants And Select The Best Fit Tenant For The Home. What Qualifications Are You Implementing? Are These Qualifications Different Than The Qualifications For A CLASS A Or B property? Why? Or Why Not?

Dennis M. · Answer

I throw an ad up on Facebook marketplace . When the right ones messages me I will know the top three simply by screening through the profiles .. then I narrow it down . You can tell about 99% of the time who would make a good tenant just by trolling their profile

Mark Fries · Answer

@Cameron Riley

My qualifications:

A pulse on one hand and cash in the other...

Wesley W. · Answer

Here is the qualifications letter that I use (B-/C+):

Thank you for visiting and applying.  We are pleased you are considering making your home with us. We are very proud of our property and its residents and believe you will be, too.  Our standards for qualifying to rent a unit are simple and fair. They are:

Applicant must be employed or have verification of income.  We require monthly gross household income to be at least three times the monthly rental rate.  Self-employment or income other than wages from employment such as tips, commissions, school subsidies, or allowances from parents may require verification.  An applicant that is not currently employed must provide proof of funds (current bank statement), which will equal a full year of the lease agreement and may require a guarantor and/or additional security deposit.

Credit history for a two-year period prior to this application will be evaluated. Lack of credit history may require an additional security deposit.  Negative credit history including bankruptcies or repossessions is unacceptable.

Applicant is preferred to have a minimum of one-year verifiable rental history. Verifiable rental history for a period of at least 12 months, in which all the lease terms have been satisfactorily fulfilled, is preferred.  Negative rental history, eviction, or outstanding monies owed to a previous landlord are unacceptable.  If applicant owned a home, applicant may need to furnish mortgage information upon request.  If applicant has no prior verifiable rental history due to living at home, an additional security deposit may be required.  If  an uninterrupted chain of documentable residence cannot be established for the previous 24 months, this is unacceptable.

A criminal background check will be done on all applicants and any occupant 18 years of age or older.  Misdemeanors against persons or property or felony convictions within the past five years are not acceptable.

Applicant’s character.  Evidence suggesting a courteous person who is generally clean and well kept in appearance, and demonstrates truthfulness, reliability and follow through on and during the application process.

In the City of X, occupancy limits have been established per unit size.  Please confirm that the unit for which you are applying meets the minimum legal criteria for the size of your household.

In order to proceed with the application process, each applicant aged 18+ must provide:

• Completed Rental Application
• Scan/photocopy of NYS Driver’s License or Government-issued photo I.D.
• Scan/photocopy of the two most recent pay stubs

At landlord’s discretion, compensating factors such as an additional security deposit or co-signer (guarantor) may be required for qualification if Applicant fails to meet any one of the above requirements.In the event of multiple applicants, tenancy will be granted to the most qualified, based on the above criteria.

Once your application is approved, you will have 24 hours to submit a non-refundable binder payment for your rental unit.  This payment will become your first month’s rent upon move-in.

We look forward to providing you with a positive rental experience while you call this residence “home.”  We are a local company, owned and managed exclusively in X.  We pride ourselves in managing well-maintained units for our quality residents.  If you have any questions about any part of this process or the qualifying criteria, please ask and I will be happy to help.

Thank you again for your interest.

I never have any problems finding applicants that fit these criteria.  I also require first/last/security on lease signing (M2M only).  My competitive advantage is my units are a bit nicer than my competition so they show well (and have better pics, IMO).  In the winter, it's always a bit tougher to find someone good - but again, never a lack of interest from qualified renters when I have a vacancy.

Jason D. · Answer

@Cameron Riley yes, the qualifications would be lower for a 'c' class property than an 'a'class property.

My qualifications are...

Income 3x rent

No evictions

No Felonies

No serious derogatory items on credit

Jason D. · Answer

Yes, both of my current rentals I would consider C - C+ neighborhoods. So far so good! A couple years of good tenants.

Previously also had a B - B+ property. The only change for that on was a minimum 650 credit score. Great luck with that one as well, 5 years, 2 tenants, 1 missed month of rent due to turnover.

Jill F. · Answer

Hi @Cameron Riley

Some of my properties  are probably C- (maybe even D+ depending on who you ask). In an A or B neighborhood/property, you expect people to have a credit score to protect. Hardly anyone has good credit in C- world.

I'm trying out a new website with a personality questionaire called honestrenter.com. But it's too early for me to tell how it's going to work out though early results are promising.

#1 is job history. Steady employment history is paramount.

#2 is no evictions (Ok, I'll consider maybe one eviction if they have a good excuse that I can verify...Like I was in jail or I would have moved. Or my name wasn't on the lease: I was couch surfing and paid the real tenant and they didn't pay the landlord or what ever.)

#3 is no recent serious or violent criminal convictions.

#4 I try to avoid people exhibiting behaviors consistent with cluster B personality disorders

Dennis M. · Answer

Well  That criteria  alone might . Besides I’m not saying you tell people that lol

Mark Fries · Answer

@Cameron Riley

Crushing it

Wesley W. · Answer

Why would that be discriminatory??

Behavior on social media is not a protected attribute.

Wesley W. · Answer

@Charlie Moore  Yes, my properties are C class.  There is not a qualification for personality, but rather character.  There is a very distinct, yet immensely important, difference.

I disclose the character component because honestly, it is a factor for me.   It is also easy for me to use, if needed, rather than something more concrete.  I would use it as justification if there ever were a claim of discrimination, as I keep a well-documented paper trail of an applicant's interactions and conduct throughout the process.  It would be harder for me to make that case, I believe, if it were not part of the written qualifying criteria.

Class C Property Owners.... Pre-Set Qualifications????

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