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Updated almost 5 years ago on . Most recent reply

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59
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Adam F.
  • Rental Property Investor
  • New Jersey
11
Votes |
59
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Applicant has Federal Tax Leins

Adam F.
  • Rental Property Investor
  • New Jersey
Posted

I've had my rental listed for about 2 months now, and haven't had anyone fill out an application until this week. I should mention this is the second turnover I've ever had and I've only been a landlord for about 2 years now.

I just got the screening results back, and everything looked really good except I noticed they both (married couple) had multiple small business federal tax leins between 2010 and 2017, for amounts up to 350k. I'm not sure if this is a deal breaker since they both have really good credit, good income etc. Plus they're my only serious prospects right now and are looking to rent for 2+ years. However federal tax leins sound pretty serious to me, especially with those types of numbers.

Just looking for some advice or insight here on the best way to move forward.

Most Popular Reply

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Bjorn Ahlblad
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
6,948
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6,603
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Bjorn Ahlblad
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
Replied

@Adam F. yes google federal tax liens and you will find more than you ever wanted.

The 'we are selling our house and want to move into an apartment' can be a huge red flag! Also, the IRS would have seized their house to satisfy a lien, which is maybe what is happening. Or, they have just picked a listing to say 'see that's ours we are selling'-pretty common scam actually. That way you won't be looking for previous LL's-right? Be on your toes with this couple Adam! Believe nothing and verify everything. 

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