Newbie tenant screening question

[Michael Doub]

I just finished the rehab of my first BRRRR and am screening/selecting tenants. A young engaged couple applied and completed credit and background check on my cozy listing, but only her information was there because he does not have a SSN. This couple was referred to me by my contractor who is family with them and basically said he would co-sign lease for them if they ran into trouble/difficulty paying rent (i put no real value in this as it is the tenants responsibility not someone elses). How should i evaluate the worthiness of these potential renters, if i should at all ? He is the main breadwinner in the relationship. Or, is this an easy decline?

[Brian Lucier]

@Michael Doub

Hello Michael, interesting question. For starters there are three classes of rental candidates we do not rent to, they are:

• Friends
• Family
• & Fools

Way too many stories of that brother, cousin or distant relative moving in and thinking your have "Bigger Pockets" and decide on their own the you don't "need" to collect the rent. Nothing puts a damper on Thanksgiving Dinner faster than having to evict Uncle Charlie then ask to "pass the potatoes".

Folks will always try to help a friend having little concern for the impact it will have on your bottom line. I loved the comment to have the person referring them as the co-signer. That - is brilliant @Sandy Gabin. Renting to fools? Well if they cannot pass your screening criteria, do not have income, no rental history, or offer to pay in cash and arrive at the showing in a U-Haul; then just move on. 

Being said, you MUST perform a thorough screening background check equally and fair on ALL applicants the EXACT same way to avoid being accused of discrimination.  

Discerning? YES! Discrimination? NO - NOT EVER - NO WAY - NO HOW (thank you Wizard of Oz)!!!
For your perusal and entertainment, please check out our BP members blog post:

Top 10 Tips: Guerrilla Tenant Screening Tips for Landlords