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Updated almost 6 years ago on . Most recent reply

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BOB CRANEY
  • HIGHLAND, MD
141
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Best practices in qualifying unrelated/Unmarried prospects

BOB CRANEY
  • HIGHLAND, MD
Posted

I have a really nice 2BR/1BA apartment in one side of a duplex that seems to be attracting a disproportionate qty of calls from prospects who are roommates/friends or a BF/GF and another friend. In almost all these cases none of the individuals qualify on their own under our 3x gross income guidelines but together they do. I have not had the best of luck with this arrangement in the past and wonder if it would be advisable/legal to have a different income standard when qualifying unrelated prospects vs a married couple. My property is a B+ property in a C area and it’s been difficult getting that better quality tenant due to being in the “CUT” as they say.

Any best practices in situations to limit my downside risk. I was thinking of just don’t MTM leases for these situations so I can evict quick if things turn south.

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Marc Winter
  • Real Estate Broker
  • Northeast PA
2,659
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Marc Winter
  • Real Estate Broker
  • Northeast PA
Replied

I would not suggest you use one set of approval criteria for one 'type' of applicant that is in any way different from another 'type'.  There's a word for that.

With any lease involving more than one signer, include the words "jointly and severally" in your lease, along with a plain-language explanation of what the terms mean:  even if your co-tenant moves out, doesn't pay, causes damages, incurs violations or fines, etc, you are BOTH responsible.

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