How to best protect myself renting to a non qualified tenant with qualified roommate

Question

I am considering renting to someone who

1. Was a drug addict but allegedly clean for 5 years. Had a felony arrest 5 years ago.

2. Has bad credit

3. Has no job

hear me out.

his mother contacted me. He is living in their family investment home but she's selling it and she's looking for somewhere for him to go. She has significant enough assets. She is willing to sign on as the main tenant which means she is responsible for the apartment.

my thoughts thinking out loud:

the other prospective tenants have income issues so at least in this case I know the rent will be paid.

the mother has pretty significant assets (low 6 figures + another 6 figures from sale of the house)

if he destroys the property I could go after her for it right? She would be listed as a tenant even though she would not live there.

he has supposedly been clean for years. The mother would not be willing to sign on and risk her assets if she thought there was a chance he could relapse and destroy the place, I'd assume.

other thoughts: say he has unsavory friends and starts inviting them over. So the rent is paid, but he is disturbing the neighbors, or stealing things, or smoking cigarettes indoors or something. He would be in violation of the lease and would need to be evicted. I'd have to hire a lawyer. Could I go after his mother for these costs?

i want to give him a chance. I'm familiar with recovery and addiction and I know some people just need to turn their life around. But also need to protect myself.

Adam Bartomeo · Answer

Just you considering it means that you need to FIND A PROPERTY MANAGER TO PROTECT YOU! This is all said to try and help you.

It is about facts, not feelings, not hopes, not maybes...

3. Job/ income - tells you if they have the ability to pay you. THEY DON'T!

2. Credit - tells you if they will pay you. THEY WON'T.

1. Felony - tells you if they will give you and/or the neighbors a problem. THEY WILL!

Wanting to help people is a great attribute but your thought process is wrong. This is a business not a charity. Part of the reason people pay rent is because they need shelter, the mom already has shelter and is more likely to stop paying you rent if things go sideways in her life. At some point she will get tired of her adult son taking advantage of her and you will be stuck.

Nathan Gesner · Answer

Automatic denial.

1. Family and friends do not count as Landlord references.

2. No job or income.

3. Bad credit. If they trash your place and you send them to collections, they won't care because their credit is already bad.

If mom and the son were living together, and mom had really good credit, then there may be some wiggle room to consider them. However, she wants you to qualify him based on her record, even though she is not living there. That is bad practice.

I would consider someone with a felony record if they have a clean history for at least two years after serving their sentence. "Clean history" means they are productively holding a job, paying their bills, building their credit, and doing all the things a responsible citizen does. This guy has been living in mom's house, not working, not building his credit. I would bet dollars to donuts he's still doing drugs.

Nathan Gesner · Answer

There are good renters and there are good property managers. You must know what a good one looks like, screen until you find a good one, then supervise them to ensure they adhere to the agreement.

I manage up to 400 rentals and have dealt with thousands of renters. This one has a ton of red flags. You can believe my experience or ignore it and let them in. Don't say we didn't warn you.

Dee Hart · Answer

Could you add his mom as a cosigner or guarantor?

Michael Smythe · Answer

High probability of NOT ending well.

Sounds like mommy is tired of supporting him.

Matthew Paul · Answer

Why isnt his mother moving him in with her for starters ?  If she pays a year up front , makes it harder to evict .  What could possibly go wrong with this situation ?     None of it will happen if you say ...................NO

Ned J. · Answer

Stop trying to talk yourself into accepting a tenant.... if you have to do that, its the wrong tenant.

When screening your job is to decide why you should declined them...... and this guys has LOTS of those.

PASS

Colleen F. · Answer

@Lily Yu   he got laid off in April, it is now August.  You don't wait to look for a job if you have a felony, with a record it will take longer to find a job, He should be working something. The fact that she said he is waiting to see where he will be housed is not a good sign. The fact you are talking to her only is not a good sign. I have a son out of work, he is looking everyday and with misdemeanors they are turning him down.  He picks up day jobs and temporary work where they don't care about a record in the interim. He lived in boarding houses when he had to. Mom can't do it for him.

If this is a poorer neighborhood and he called you and he was working or mom was living there or a gaurantor I would consider it but I would not take him on, unemployed and not taking his own initiative for a job or apartment.

Adam Bartomeo · Answer

@Lily Yu Honestly, it sounds like you need help with decision making. Selecting bad PM's and now considering selecting a bad tenant... If you are against PM's than you might want to consider partnering with someone with strong decision-making skills.

Lily Yu · Answer

The only reason I'm considering this tenant at all is because of the mother's assets. I live in a historically low income area so I always run into issues with people being able to pay rent. The mother was willing to pay for the whole year upfront in escrow. Which is not necessary and a little tricky legally, but she certainly has enough money to pay their rent so that is not my concern.

I am just one person with one experience but I will tell you in my experience the property managers I've dealt with have been the biggest thieves of all. It doesn't happen like a tenant, all at once, but it's death by a thousand paper cuts. I have had good property managers but a majority of them have been bad which is why I now manage everything myself. In fact, all the worst tenants I ever got were once put in by property managers.

How to best protect myself renting to a non qualified tenant with qualified roommate

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