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Updated almost 12 years ago, 02/01/2013

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Jon K.
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Are all last-minute tenants bad ones?

Jon K.
Posted

Are all last-minute applicants bad ones?

I've been looking for a February roommate.

I've started getting more inquiries again, but after a quick Google/court record search for them, I have charming candidates.

1) Student with no job... she has a recent lawsuit against her from a rental company. And, at least 2 people have filed restraining orders against her. Google also says she allegedly tried to run an adoption scam.

2) Female in her 30s with drug charges within the past few years.

3) Guy with tons of charge-offs in small claims court.

This is a roommate setting. I don't accept people with evictions or drug charges. Small claims ok if older collections, and if income/rental history is good.

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Jon K.
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Jon K.
Replied

I forgot to add... druggie girl is currently on probation for a bogus check case.

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Ed B.
  • Real Estate Investor
  • Sacramento, CA
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Ed B.
  • Real Estate Investor
  • Sacramento, CA
Replied

All I can say is you must live in a crappy neighborhood to get those kind of loser applicants. My sympathies to you.

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Jon Klaus
  • Developer
  • Garland, TX
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Jon Klaus
  • Developer
  • Garland, TX
Replied

I might change my tact from advertising to seeking referrals. Let your network know exactly what you are looking for. Also contact local churches or other organizations that match your values or lifestyle.

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Rob K.
  • Investor
  • Southeast, MI
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Rob K.
  • Investor
  • Southeast, MI
Replied

Jon K. I've seen you post about roommates before. I'm just curious as to what you have? Is this a house that you live in and you rent out rooms? How many rooms? Do they have free run of the house? How much are rents? What state is this in?

I knew an older lady who had a colonial that she turned into a house that she rented out. Her son had changed the dining room into a bedroom for her and added a wall and door in front. When you walked into the front door, the roomates could go upstairs to their rooms. The owner had another door to go throught to her main floor area. The upstairs had three bedrooms with locking doors. The three tenants shared a bathroom and had a small fridge and microwave in the hall to share. This was in the mid 90's. She was getting $60 per week per room. She was about 70 and had started renting to some bad tenants. Her son wanted her out and put her in an assisted living apartment.

The guy that bought the place did the same thing and lived on the main floor and rented the upstairs. He got rid of the worse drifters and replaced them with better drifters.

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Kyle J.
  • Rental Property Investor
  • Northern, CA
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Kyle J.
  • Rental Property Investor
  • Northern, CA
Replied

I don't know that ALL last minute applicants are bad, but it is certainly a red flag when someone has to move NOW. Usually they're running from something (i.e. eviction, etc). Or they're trying to create a sense of urgency on your part hoping that you won't fully check them out.

As for the applicants you described, I wouldn't rent to any of them in a house that I don't live in, and I certainly wouldn't want them to be my roommates. Keep searching for better candidates and maybe reconsider where you're advertising. Not sure where you're advertising now, but you're obviously not attracting the best candidates.

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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
Replied

Sometimes you will get people who have had a disaster hit their house they are in now - fire, tornado, hurricane, flood, etc. - and they have to move ASAP so they need to get into another unit in a rush. Accepted one who did give 30 days notice BEFORE having even looked for a new place - due to break-in at the place she was at.

I had two other interesting situations come up this past year. One was supposedly on move-in day unable to get into the new house and was not getting response from that landlord - so I got a call on one of my "for rent" signs wanting to just move in that day! Not happening until I get an application and applicant passes screening I told the lady calling. then a short time later the brother of this lady called ... same deal, same reply.

The other was supposed to be having the new place made ready by the landlord, but he had not yet finished the work, so she decided to see what was available. Seemed like she wanted to move quicker than what that new landlord was doing.

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Bienes Raices
  • Orlando, FL
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Bienes Raices
  • Orlando, FL
Replied

I want to understand WHY their moving so quickly. If I'm comfortable with the reason and it can be verified it doesn't bother me. I don't let anyone move stuff in early before they take occupancy.

I need at least a few days for them to get the utilities set up in their names, so I would reject anyone who needed to move in on the same day. I guess this wouldn't apply in your situation since they are sharing a house you already live in.

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Bienes Raices
  • Orlando, FL
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Bienes Raices
  • Orlando, FL
Replied
Originally posted by Jon K.:
Are all last-minute applicants bad ones?

I've started getting more inquiries again, but after a quick Google/court record search for them, I have charming candidates.

That is smart. I wish I had started doing this kind of pre-screening a long time ago. And since it's free, public data I don't see anything wrong with doing it.

I just wasted a lot of time texting/meeting with someone when a simple search of the clerk of courts websites would have revealed they had a conviction for writing bad checks.

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Jon K.
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Jon K.
Replied

I unfortunately am relatively new to the area, with no networks to get referrals on. I've had some short-term med students, but their schools weren't local so there's no connection there to get others like them.

It's a house with a few rooms I rent out. They each have their own bedroom. I sure don't want to do it forever, but for now it's necessary.

My rents are cheap. $400something utilities included. Seems dirt cheap to me. Same price, or less, than others around here. My neighborhood is nicer, and house is larger/more expensive than Craigslist comparable rooms for rent. They get access to the rest of the house. The roommates combined rents couldn't even pay a standard mortgage on this house, let alone utilities.

I've gotten some good tenants from out of state. One was ideal, but bought their own house. Others moved in with dating partners. I accept short-term.

I don't accept smokers, pets, or evictions, or people on probation. (LOL)

I might have to cave and accept pets at some point, but I have massively huge custom windows and drapers, light carpet, and antiques.

Interesting idea about the old lady with a dining room turned bedroom. I actually have a large dining room that could be a room if it had one more wall. It wouldn't have an attached bath. I guess I'm not alone in getting drifters. Maybe that's the nature of the game with many roommate situations.

I get inquiries from "bad" tenants, or people with kids, or couples. No way. I'm living here too and sharing kitchen spare, laundry, and living rooms.

I also get inquiries from old people. I invited a few this week. Sometimes they realize I'm (relatively) young and choose to live with someone their own age.

I'm advertising on Craigslist, Roomster, Facebook/Oodle, and Roommates.com.

Should I have a long ad? A short ad?
Not state my criteria upfront (no smokers, pets)?

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Rob K.
  • Investor
  • Southeast, MI
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Rob K.
  • Investor
  • Southeast, MI
Replied

Have you thought about having people pay weekly instead of monthly? The drifter types live from day to day and check to check. If they are paid weekly (weakly), they might be able to pay better on a weekly basis instead of saving money for a whole entire month. You would also get the benefit of four extra paychecks per year as there would be 52 weekly payments instead of 12 monthly payments. Just a suggestion.

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Bienes Raices
  • Orlando, FL
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Bienes Raices
  • Orlando, FL
Replied

Jon K.

You may be overthinking this. Since you'll be living there with them you'll be keeping an eye on them and they'll be less likely to do damage. My aunt has been renting a rooms in her house to students for years, and the biggest problems she's had is someone moving their girlfriend in without permission, and one tenant who was a party person. No serious damage, no no-pays, no psychos, as far as I know. I don't think she does extensive screening either. I'm not saying just take any warm body, but as long as the person has the income and you put them on month to month, and do the criminal screening, I wouldn't stress out over it. Most people renting a $400 room probably aren't going to have sterling credentials anyway.

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Jon K.
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Jon K.
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Weekly? Hmm. That's interesting. Would weekly tenants still have a one year lease? I could get some short-term professional travelers that way too.

By "drifters," are we talking borderline homeless and ghetto?
Or young people who work but relocate often?

With my nice neighborhood, I'm not sure I would want to lower the bar to drifters vagrant bums who couldn't afford $400something upfront. My wall art is worth more than $400. I usually rule out those on probation for fear they'll jack my stuff or ruin the house. Do you run into that problem with drifters often?

My ideal target is young professionals and students. Had those in the past, but not this time of year.

Short-term medical students or working professionals needing one month only is another ideal tenant I've had and hope for.

I really should find a way to advertise at the colleges here. None of them had off-campus housing lists or offices. Hmm...

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Jon K.
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Rob K

Do you usually get more lates with weekly payments?

Are these people incredibly broke and desperate? Is $400something an incredible amount to someone who's, say, 22? I could see weekly payments being good for a student. Hmm..

Bienes Raices

I probably am pre-screening too much, but people with jobs/schools, no recent court records, non-smokers, and who seem sane still aren't flocking in this time around.

I'm surprised your aunt doesn't have much damage. Does she have to share kitchen and living rooms with them?

I suppose I could try out a person, do month to month, and if it just doesn't work, as them to leave. Hopefully I get someone mid-month that's a good enough match since Feb. 1 is unlikely.

I started advertising early January or mid-December... can't remember which. I'm surprised I haven't found a match yet. Usually I've found someone by now that's safe, clean, employed.

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Rob K.
  • Investor
  • Southeast, MI
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Rob K.
  • Investor
  • Southeast, MI
Replied

Jon K. I've never done weekly payments or had roommates. I was suggesting that since that is what the lady that I mentioned earlier did and also, it seems that you're having a hard time finding qualified people.

You didn't say what state you're in, so I don't know the values. In Michigan, someone can rent a one bedroom apartment including heat and water for under $500 per month in a b- or c+ area. I didn't know you were in a nice area. With all of the down and outer types you mentioned, I thought you might be in an expensive ghetto type place like Compton or somewhere. You mentioned that it's a nice area, so hopefully you have good tenants. I just figured they were drifters since you mentioned all of the drug problems and scams in your post and also, they are just renting rooms.

I only suggested weekly payments since someone who is renting a room is probably on the edge financially and might have an easier time with weekly payments.

If you're getting $400 monthly, keep doing what works. I would think that college students would be good prosepects. Also, people who work a lot of hours in a hospital or factory and don't have a lot of off time would be good prospects also.

Have you considered going month to month? I would think a roommate would be hesitant to sign for a year. They could be afraid that you or one of the other tenants could be nuts and not show the true colors until after they move in. I think a single woman would be afraid to commit for a whole year.

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Jon K.
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Jon K.
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Rob K

My leases currently are only month to month. I accept one month visiting medical students too. I don't do 1 year leases at all. You're definitely right about people being nervous to do leases. I stopped doing year leases shortly after I got roommates. Now it's monthly.

The nearest nice 1 bedroom apartment to me is $700 - $950 plus utilities. Normal nice 1 bedroom apartment is $750 plus utilities. The nearest average/nice rental house to me, not as large or nice as mine, is 3 bedrooms at $1800 plus utilities. The nearest room for rent to my immediate area was about $600 bills paid. That house was newer, gated neighborhood, nice. If you drive 10 minutes away, the rooms for rent are around $450-- some include utilities, some don't. It does seem like $450ish utilities paid is a fairly average going rate around here for a room for rent in an average older, smaller, somewhat less nice home than mine. The $600 room for rent I saw had a newer, nicer house than I do. I saw one person rent a room in a nicer house than mine in a very nice gated neighborhood for $700 bills paid. $450 bills paid is more common than those higher amounts. If you drive 15-20 minutes to the moderate ghetto, you can get a 1 bedroom small apartment for only $500 plus utilities. If you drive 20-30 minutes to the true dangerous ghetto, you could probably get a nasty old 2-3 bedroom house for that very $400.

Are my rates off?

I should probably think about doing bi-weekly or weekly payments. I don't want someone destitute enough that they'll destroy my house or jack my stuff, but someone with regular weekly income that at least covers their expenses would be good.

It is an interesting idea. I think I see drifters as hobo, but maybe that's what I am looking for-- a clean blue collar professional who pays on time weekly, makes just enough but not too much, and not a criminal. You're right about someone just renting a room likely being on the financial edge. People like that would probably stay longer too. I really should expect people needing $400ish in rent/bills to be more on the financial edge. How close to the edge should I go-- do I accept evictions? Not look at collections?

My area is more.... "suburban" style. Definite quiet, premium area. That's probably one of the problems. It's an established, quiet family community. Not many young people, and definitely no roommates around here in the immediate area. I'm probably 15 minutes to any of the nearest 3 colleges, so it's not completely ideal for students. It's a bit far from campus. Maybe young people want to party it up more. Another downside to my area is that people get married young. So, that rules some decent people out right there.

So far, I've had better tenants in the past. Some medical students, some young professionals, some graduate students. My graduate student makes $1200+ a month and had good rental references. I got lucky last year with a tenant who made $65K with stellar credit. That was a weird fluke, much too overqualified for a roommate. They just wanted to live with other people. They bought a house within the year. Most of my tenants have been students or recent college graduates who just got their first full-time job. Usually average credit, good rental references, able to pay rent/deposit up front.

I'm not sure why I'm not getting more of those people now. I've gotten some old people who realized I was younger and didn't come see it. I've gotten people in the middle of a divorce show interest, but not come look. I guess responsible students don't move in February. And, recent college graduates would have graduated last May and already found a place. Could this be a "timing is off" issue than price?

I've been trying to vary my Craigslist ad, but that doesn't seem to help. I could try varying the price.

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Jon K.
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Jon K.
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Rob K

How lucky you are to never have had roommates. Roommates SUCK. I'm so tired of roommates. Goal is to have none by winter.

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Rob K.
  • Investor
  • Southeast, MI
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Rob K.
  • Investor
  • Southeast, MI
Replied

Jon K. It sounds like you have thought of everything. I don't think I would lower my standards. Maybe try having the same qualifications, but accept weekly payments and see if that opens up the pool a little. You will make more money and it's not an inconvenience for you since you're in the same house.

I would also put out the word among friends and co-workers that you're looking for a roommate. Maybe let them know that you will pay some small commission ($50-100) if they refer a good prospect to you that ends up renting. Nothing talks like cash.

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Amy A.
  • Portland, ME
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Amy A.
  • Portland, ME
Replied

I always put in my Craigslist ad that I do a criminal and credit check for a fee that's refundable with first month's (or week's) rent. It cut way back on the criminals applying.
Here's an idea for short-term renters: check with the local hospital to see if there are traveling nurses who need a room. Also might mention if you've had a criminal background check - if you work in a bank or school, etc. then you've had one done. They'll want to know that you're a safe person to refer them to.

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Jon K.
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Jon K.
Replied

Rob K

Originally posted by Rob K:
Jon K. It sounds like you have thought of everything. I don't think I would lower my standards. Maybe try having the same qualifications, but accept weekly payments and see if that opens up the pool a little. You will make more money and it's not an inconvenience for you since you're in the same house.

I would also put out the word among friends and co-workers that you're looking for a roommate. Maybe let them know that you will pay some small commission ($50-100) if they refer a good prospect to you that ends up renting. Nothing talks like cash.

I'll give the weekly rent payments a try.

Should I try offering a small referral commission or discount on the first month on Craigslist? My local circle is pretty much non-existent, and I work remotely for a non-local company. I should make expanding my circle and not having roommates my goal for 2013.

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Jon K.
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Jon K.
Replied
Originally posted by Amy Arata:
I always put in my Craigslist ad that I do a criminal and credit check for a fee that's refundable with first month's (or week's) rent. It cut way back on the criminals applying.
Here's an idea for short-term renters: check with the local hospital to see if there are traveling nurses who need a room. Also might mention if you've had a criminal background check - if you work in a bank or school, etc. then you've had one done. They'll want to know that you're a safe person to refer them to.

Amy Arata I'll try adding that to my listing. Maybe I should just accept this people to get someone, but it sounds so risky if they've bounced checks or done drugs.

I'm looking for the info for hospitals and schools with med students visiting here. I've had a few nurses or med students here and want more. They had good backgrounds. And, they were perfect short-term responsible roommates.

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William Bannister
  • Commercial Landlord
  • Oshkosh, WI
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William Bannister
  • Commercial Landlord
  • Oshkosh, WI
Replied

Wow:) A lot of very entertaining posts here. I went down this road over 20 years ago when I bought a big junker house by campus and was about 23 years old. I was lucky enough to have a deep pool of roommates and they almost always were students. I dont even remember having to do credit checks because I knew most of them and they were pretty honorable.
Im glad that situation lasted only 2+ years for me and eventually I bought another home and moved into that one alone. I have ran boarding homes a few times over the years and eventually closed them up to sell the homes to take advantage of increasing markets.
I will not go back to boarding homes because of the trouble. They seem to collect the worst bottom of the barrel of tenants you can possibly get. Even a drifter with a clean record scares me because if you piss them off when they move out and do it most likely while your at work school or ect. Who knows what will go down the road with them.
A security deposit doesnt pay for you flat screen and dresser full of clothes going down the road with them.
If your already after just one person to live with you where are your contacts in life? Find some quality people in your life and spread the word to them you would like a good roommate?
I would think somewhere there has to be a divorced guy or girl that is going to school that isnt rich that needs a cheap safe place to stay...Other then the craigslist adds that bring the masses to your doorstep you dont know? Do any of your friends coworkers know anyone. Your trying to find a roommate. It is so much more then a tenant because you live there. If your running the add I would suggest you put in the add your criminal back round and credit check part of application to weed out the garbage. You would save time for all involved. I know at the higher end boarding homes and room mates type situations your offering more services helps like internet+cable and maybe even order a newspaper remember its all tax deductible against the rent received.
In our boarding homes I ran a long time ago I had a cleaning lady over there once a week toke out garbage and vacumned after doing a light pickup of living room and dining room and bathroom. Paid for about 1.5 hours of work was worth it. Make the service to tenant a little more since they live in your place could be like hotel treatment they might like it. Offering free towels. Go get a stack of towels at Walmart for 25 bucks. In one of our boarding homes during holiday season I always brought stacks of towels over and left a bucket full of cheap bars of soap and also a huge box of toilet paper. They liked that. I always brought tenants dishes I found in my apt buildings I did turnovers on too. The boarding home was a place for me to donate things too when I would go over to collect rents. No more though its too time consuming as far as I feel I stick to apt buildings and sfh


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William Bannister
  • Commercial Landlord
  • Oshkosh, WI
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William Bannister
  • Commercial Landlord
  • Oshkosh, WI
Replied

As a fairly social guy when I was college age, I thought I knew a lot about the less legal aspects of party life and drugs when I had my college boarding house going putting up with roommates using alcohol.
Later i would learn a lot more about drugs then I ever knew when I had a drug house get busted. The funny things was one of my drug houses came from a tenant with stellar 750+ fico credit that was enrolled in college and seemed like a fairly intelligent guy. I wont go into details but several hundred pounds of weed and back door blown open by the law and off to prison they went. After cleaning up the mess I was like wow this is how drug dealers do it!:) I can look back and laugh now but it sure wasnt funny looking at all the vent work being rerouted to shelves of pot plants and paint on the walls ruined by the humidity. The law had to blow the doors open right after Christmas? Maybe they needed to fill there quota before the New Year:)

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Bienes Raices
  • Orlando, FL
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Bienes Raices
  • Orlando, FL
Replied
Originally posted by Jon K.:
Rob K

Do you usually get more lates with weekly payments?

Are these people incredibly broke and desperate? Is $400something an incredible amount to someone who's, say, 22? I could see weekly payments being good for a student. Hmm..

Bienes Raices

I probably am pre-screening too much, but people with jobs/schools, no recent court records, non-smokers, and who seem sane still aren't flocking in this time around.

I'm surprised your aunt doesn't have much damage. Does she have to share kitchen and living rooms with them?

I suppose I could try out a person, do month to month, and if it just doesn't work, as them to leave. Hopefully I get someone mid-month that's a good enough match since Feb. 1 is unlikely.

I started advertising early January or mid-December... can't remember which. I'm surprised I haven't found a match yet. Usually I've found someone by now that's safe, clean, employed.

Jon,
Her tenants are mostly Asian exchange students who tend to be very shy. They don't do real cooking--they just use the microwave (by their own choice). They are like ghosts, they spend most of the time out or in their rooms.

I have friend who shared his apartment with someone back in the '80s (I doubt he screened the person at all). One day my friend's VCR disappeared and my friend told the roommate to leave. The roommate did leave, but left all his possessions behind, including family heirlooms. My friend tried to contact the guy, but he was incommunicado. Finally my friend got rid of the stuff, but then a year later the man showed up asking for his belongings. He never tried to take my friend to court though. This is the worst "roommate" story I've heard, and I've had several roommates over the years and have known many others who have. The more likely issues are dirty dishes and noise problems.

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Jon K.
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Jon K.
Replied
Originally posted by Bienes Raices:

Jon,
Her tenants are mostly Asian exchange students who tend to be very shy. They don't do real cooking--they just use the microwave (by their own choice). They are like ghosts, they spend most of the time out or in their rooms.

I have friend who shared his apartment with someone back in the '80s (I doubt he screened the person at all). One day my friend's VCR disappeared and my friend told the roommate to leave. The roommate did leave, but left all his possessions behind, including family heirlooms. My friend tried to contact the guy, but he was incommunicado. Finally my friend got rid of the stuff, but then a year later the man showed up asking for his belongings. He never tried to take my friend to court though. This is the worst "roommate" story I've heard, and I've had several roommates over the years and have known many others who have. The more likely issues are dirty dishes and noise problems.

Ah, nice. One of my tenants is Asian and grew up in Asia. This one is more reserved and shy. Cooks a lot though... can't get used to the smell. I should seek out international students who might be shy and could enjoy a furnished house for short-term.

A missing VCR? Heh. I'm glad that's the worst roommate story you've heard.
Noise problems I'm familiar with... and people having too many guests.

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Jon K.
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Jon K.
Replied
Originally posted by William Bannister:
...
I will not go back to boarding homes because of the trouble. They seem to collect the worst bottom of the barrel of tenants you can possibly get. ....
A security deposit doesnt pay for you flat screen and dresser full of clothes going down the road with them.
If your already after just one person to live with you where are your contacts in life? Find some quality people in your life and spread the word to them you would like a good roommate?
I would think somewhere there has to be a divorced guy or girl that is going to school that isnt rich that needs a cheap safe place to stay.......

These people could move fast. They're coming with only bedroom furniture.

One of my old roommates moved so quietly I didn't notice. They gave me proper notice, and didn't leave so much as dust behind. I didn't see this roommate but maybe 10 times in a year. They were amazing. Usually stayed at their partner's house. They were practically a ghost.

I definitely need to meet more people in general in life. I have a rule about not doing business with friends. Besides, my friends are married, too messy, or have pets. I'm relatively new here and don't yet have semi-acquaintances.

I should try to get a recent divorcee in here. I have furniture, so someone's got to find that useful. And I do short-term stays.