All Forum Posts by: Eric Jones

Hey Jordan, I am a landlord, investor, and agent in Oklahoma City and would be happy to help you navigate the market as well as any questions you might have. Let me know if I can be of any assistance!

We have a husband and wife that have applied for one of our properties (both of them applied individually, as instructed). The wife meets the minimum requirements, but the husband does not meet the credit score requirement. As suggested in one of the Bigger Pockets books we included a disclaimer in our requirements that, at our discretion, we could require things like an additional deposit to offset the credit score in the event an applicant did not meet the credit score requirement; this is what we intend to do (require an additional deposit).

My question is should we send an approval notice to the wife and send the conditional approval notice to the husband at the same time? Or should we just send the conditional approval notice to the husband first? Or should we send one conditional approval notice that is addressed to them together?

Being that they are married (and have been for 20 years), I feel it would make sense to conditionally approve them together with the requirement of an additional deposit, but is that wrong since they applied individually? I know if this were a true roommate situation it would be best to approve / conditionally approve them separately, but since they are married should I address their approval together? Any input would be greatly appreciated, thanks!

Quote from @Richard F.:

Aloha,

Even if they have a "Hiring" Letter, showing they have been offered the job, most companies have a "probationary" period of 90 days to six months, during which they could easily be terminated (or decide to leave). Are they local prospects, or "new to town" also? You need to ensure they have adequate savings to sustain them for some period of time; and they should offer proof of their general job stability and earnings for the previous year or two at least. This, of course, in addition to usual full credit and background checks.

Great points, thanks! They said they are new to town. 

I have a prospective tenant that says they have accepted a new job that will allow them to meet the minimum standard set for monthly income, but they are waiting on the company to officially send the contract to be signed. I wouldn’t approve them based on that story alone, but if they do produce a signed contract and I verify with the company that it is legitimate, would you still accept them (assuming everything else checks out regarding the minimum standards) or would you prefer to wait until they at least begin their employment or maybe get their first check? I am somewhat hesitant to rely on just a signed contract and no actual income received yet, but wanted to get other opinions. Also, they have not applied yet; they just asked if the signed contract could be used as proof of income. Thanks!

Thanks @Chris B. ! I appreciate you sharing your experience in this situation and how you’ve handled it. 

Thanks for the input @Alexandre Marques dos Santos !

I have an applicant I am considering conditionally approving due to a bad credit score. The condition is a higher security deposit. I know I have to send an Adverse Action notice, but I imagine the applicant will ask what issue caused the conditional part of the approval. Is there any problem with letting the applicant know it is due to a bad credit score? I wouldn't think so, but all of the AA forms I've found do not seem to give the option to specify the reason for the AA notice other than noting it is something from a consumer report. I also understand the AA forms are most likely often used for rejections and in those cases I'm sure landlords have no desire to continue the communication with the applicant, but what about in this situation where I am considering conditional approval? Is there any reason to not let them specifically know it is due to a bad credit score and that is why a higher security deposit is being required? Thanks!

Thank you all for your input, it is greatly appreciated and helpful!

I had a showing today for our rental property and the individual said her kids (all 18 years old or older) would be living with her and that one of them is disabled. My requirements state all individuals 18 years or older that will be living in the house must complete an application and meet the minimum standards. How would you handle the disabled individual in terms of screening and application? She made it sound like it was a shock that her disabled daughter would have to go through the same process she herself would go through in terms of applying, but I just told her I would get back with her. She hasn't applied yet. Thoughts?

@Jarrod Marker have you used the new lease offered by the OREC that you linked? If so, I wanted to get your input on Section 2 (RENT) that says the tenant agrees to pay......."with __________ bills paid." My tenants will be responsible for all utilities; do you read that line as needing to be filled with the word "no"? Or would it be "all" bills paid (by the tenant)? I couldn't figure out which word was needed there. Thanks for any help!