All Forum Posts by: Emmett O.

@Jason D. @Kelly N. Thank you guys for words here. I definitely will be more strict in my standards and not overthink things like I just did here

Hi Everyone,

I have an interesting question regarding a potential tenant. A guy came around the property over the weekend and seemed like a good, upstanding dude. He was open about having a dog, only smoking outside, etc.. His social media looked fine as well. He promptly paid for his background and credit checks and sent me a month of his most recent pay stubs. I didn't like his income and his credit wasn't fine but because he vibed well when we met I asked follow-up questions. 

1. Do you have an annual salary you can share?
2. Do you have a Tax Return I can look at?
3. What is your monthy income before taxes?
4. Can you give me landlord references for the last two places you have rented at?
5. What is your current rent? What is your current utilities picture?
6. I see some credit card debt on your credit check and quite a few delinquent accounts. Can you explain this?  (was a car payment and some accounts under dispute)

He answered all of these pretty timely and, because he probably noticed my concern, said he had his parent's lined up to be co-signers if necessary. 

It gets weird when I called his two references. The older reference wouldn't give out information as a policy. The newer reference was a property manager that placed the guy and then the property owners took back management. The property manager said he paid all fine for the first two months and his credit was fine, after two months the owners took back over. He did make a comment or two about how onerous the property owners were. 

The potential tenant then gave me the number of the landlord who has since had him and OH BOY. When I asked if she could recommend him she made the following points

• They're currently evicting him and he was evicted once before (nothing showed up in my Cozy background check btw)
• He lied about only having a dog for two weeks, and now they're going on 9 months
• The dog poops all around the community grounds
• He's a smoker and litters his butts
• He was fine up until about 6 months ago when he stopped paying rent
• He won't let anyone in the apartment even for radiator work
• He's lost a lot of weight
• etc..

So I denied the application but the tenant replied back very cordially asking what the landlord said because he was curious how they could give a bad recommendation. I want to reply back honestly but am not sure if that is a smart thing to do or if I should just let the conversation end there.

Is there something funny going on here? I am denying the application regardless due to credit and income but was curious what the other opinions here are. 

@Yuriy Skripnichenko you weren’t joking, I got it in less than 24 hours that was crazy fast! Does the Cert of Suitability take 7 days because the rental license number needs to get processed to the certificate of suitability system? 

@Yuriy Skripnichenko thanks for your response back there. It makes total sense now that I have done it myself. As for the Rental License, have you ever just done it all the way through the online portal? If so do you have any idea how long it takes and what docs they require? It seems to me they require the deed and U&O (Cert of Occupancy).  

Hi Everyone,

In a lot of the books I am reading, as well as some of the podcasts I have listened to, many landlords have talked about adding a clause to their leases to give anywhere from $25 to $100 a month back to the tenant if they handle maintenance issues themselves. 

Has anyone had success in doing this? Are there any nuances to this approach? What does the legalise look like in your leases? 

-Emmett

Thank you Yuri!

@Chris Mason @Ryan Murdock

Thank you for the advice guys, much appreciated. I am gonna stay local on this one.

Hi everyone,

I'm in the process of buying my first investment property and I have a conundrum. I thought I was all set up to use my mortgage broker that I used for my first house but when she got back to me the rate was much higher than I expected.

With that issue popping up I shopped around and got a lower rate from Quicken. The rate she gave me was 6%, the rate Quicken gave me was 5.625%.

My question is: is it worth saving 40bps just to get the cheaper loan? Or should I stick with the local lender? My preference is the local lender but I was wondering if anyone had any further wisdom or can relate to this story.

Thanks everyone for your help!

-Emmett

Thank you @Account Closed !

Does anyone know if you need a Philly Business Tax # and Philly Commercial Activity License for each property? Or do you just need one of each and then you are good for the foreseeable future?