All Forum Posts by: Erik Dofelmier
Erik Dofelmier has started 9 posts and replied 42 times.
Post: Hot take: Personal booking websites for your STR are overrated
- Posts 42
- Votes 17
Very informative thread. We are under contract on a STR with an already established private booking website. It's also on VRBO but has no Airbnb presence. Being that this is our very first STR, it seems like we should continue using the established website but also start using Airbnb. Or should we start from scratch and utilize the other platforms only initially being that we are new to the game?
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Well, great news. We signed leases on both units today for a 1 March move in. I appreciate everyone’s help and advice.
Now I gotta figure out this refi aspect of the BRRR method. DSCR or conventional? I used heloc money for the DP and rehab so I want to pay that back asap. Any advice? Thx
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Ben Russell:
Quote from @Erik Dofelmier:
Quote from @Ben Russell:
Quote from @Erik Dofelmier:
Quote from @Greg Weik:
High credit means this is someone who pays their debts. They take seriously any borrowing commitments. They also do not want anyone coming after them based on damage to the home (this is the turnover part of the analysis).
Income is not relevant in this analysis.
I've seen plenty of high-income tenants with wrecked credit, because they are irresponsible. If they ever squeak through our process, they are consistently riskier tenants in terms of default and damage.
I'll take someone on a tight budget who is "a Lannister" any day of the week. That's a Game of Thrones reference, but the idea is solid - you want someone above all else, who always pays their debts.
on another note I received multiple applications today but now need some additional advice. One couple has a dad moving within six months from out of country. He’s waiting on a visa. Our standards are anyone 18+ has to fill out an app. How do you handle the situations where they aren’t US citizens and may not have the full credit background check etc?
-Ensure the couple meets your screening criteria, including the income requirements. They should be the ones able to finicially qualify and be able to pay rent, not the father.
-Tell them that anyone else who moves in at a later date must have a US issued ID (driver's license, ID card etc) and they cannot have any criminal record inline with your preset screening criteria. You still check references, past landlords etc (if applicable). That person's credit is irrelevant, because the couple has met the income requirements and is basically acting as a co-signer for the other occupant.
-In your lease have a clause about adding and removing tenants. Make sure it is clear that any tenant modification to the lease must be approved PRIOR to move-in. Have fines for unauthorized occupants. Also, have a fee for the administrative work of adding or removing a tenant. We chage $100.
-Once the dad gets here, get a copy of his ID, run a criminal background check, if possible call his references, and then do a lease addendum adding him to the current lease and let him move-in.
Congrats! I'm sure that's a relief.
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Ben Russell:
Quote from @Erik Dofelmier:
Quote from @Greg Weik:
High credit means this is someone who pays their debts. They take seriously any borrowing commitments. They also do not want anyone coming after them based on damage to the home (this is the turnover part of the analysis).
Income is not relevant in this analysis.
I've seen plenty of high-income tenants with wrecked credit, because they are irresponsible. If they ever squeak through our process, they are consistently riskier tenants in terms of default and damage.
I'll take someone on a tight budget who is "a Lannister" any day of the week. That's a Game of Thrones reference, but the idea is solid - you want someone above all else, who always pays their debts.
on another note I received multiple applications today but now need some additional advice. One couple has a dad moving within six months from out of country. He’s waiting on a visa. Our standards are anyone 18+ has to fill out an app. How do you handle the situations where they aren’t US citizens and may not have the full credit background check etc?
-Ensure the couple meets your screening criteria, including the income requirements. They should be the ones able to finicially qualify and be able to pay rent, not the father.
-Tell them that anyone else who moves in at a later date must have a US issued ID (driver's license, ID card etc) and they cannot have any criminal record inline with your preset screening criteria. You still check references, past landlords etc (if applicable). That person's credit is irrelevant, because the couple has met the income requirements and is basically acting as a co-signer for the other occupant.
-In your lease have a clause about adding and removing tenants. Make sure it is clear that any tenant modification to the lease must be approved PRIOR to move-in. Have fines for unauthorized occupants. Also, have a fee for the administrative work of adding or removing a tenant. We chage $100.
-Once the dad gets here, get a copy of his ID, run a criminal background check, if possible call his references, and then do a lease addendum adding him to the current lease and let him move-in.
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Greg Weik:
High credit means this is someone who pays their debts. They take seriously any borrowing commitments. They also do not want anyone coming after them based on damage to the home (this is the turnover part of the analysis).
Income is not relevant in this analysis.
I've seen plenty of high-income tenants with wrecked credit, because they are irresponsible. If they ever squeak through our process, they are consistently riskier tenants in terms of default and damage.
I'll take someone on a tight budget who is "a Lannister" any day of the week. That's a Game of Thrones reference, but the idea is solid - you want someone above all else, who always pays their debts.
on another note I received multiple applications today but now need some additional advice. One couple has a dad moving within six months from out of country. He’s waiting on a visa. Our standards are anyone 18+ has to fill out an app. How do you handle the situations where they aren’t US citizens and may not have the full credit background check etc?
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Carini Rochester:
Quote from @Erik Dofelmier:
Thank you. It's a fully renovated duplex so no one has been in it before. Based on Zillow and FHAs FMV numbers it seems to be in the spot, but perhaps it may be too high. When should I drop the price? Another two weeks?
I do get a lot of inquiries, but when I respond with the minimum requirements I don’t get much response after. We are in February so I’m chalking it up to the off season too.
So you recommend having people apply first? I’m using Innago, so they charge $45/app. I’d hate for someone to spend $45 on an app for a property they haven’t seen, but the way it’s been going I may have to. Thanks.
I have the prospective tenants use the Zillow application process. For one price they can submit their information to many landlords, making the process pretty inexpensive for them. I get to see their credit score, current credit situation, employment history and current, eviction history, criminal record. I get plenty of information to make a decision about spending my time showing the apartment.
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Greg Weik:
I checked out your listing and read what you're doing to attract PTs (prospective tenants) and pre-screen them, and here are my takeaways:
-No offense intended, but your marketing photos could be better. You have paint and other items in one of the photos near the entrance. None of the photos are zoomed out (or you're using an outdated phone camera). Marketing matters. Notice the haze around the photos; you must wipe the lens on your camera before shooting. If you're using an iPhone, edit each photo's brilliance and brightness a bit to make the photos more crips.
-Your property suffers from "exterior obsolescence." When you have a property in an area with low demand and demographic challenges (low credit scores, low income), you've got to get all the other details right.
-You might consider lowering your income requirement to 2x the rent. This became the law in Colorado recently, and as terrifying as it is, you need to cast a wide net in your situation. I would suggest lowering the income requirement before lowering the credit requirement.
-Next time, use a brighter paint color. I suggest SW 7015 (Repose Gray) vs. the dark color you chose. Make the space feel larger, but don't paint the walls white (too stark.)
-Your template is good for PTs (Prospective Tenants), but I would suggest asking them questions: What's your credit score? What's your monthly gross income? Do you have pets, if so tell me about them? When do you plan to start a new lease? Don't announce qualifications and hope the PTs will read these and show up qualified. No one reads.
-Finally, go with the highest credit score possible. Nothing is more important when it comes to tenant selection. In the Denver market, we have the luxury of requiring a 700 minimum score, but I imagine you could get a 700+ credit applicant with a few improvements.
No offense taken. I appreciate the candid feedback. Thank you. I'll try and get some updated photos when I go back tomorrow (I moved the open house to tomorrow).
Good points on the template and asking additional questions. With regards to the credit score, I thought that it would be better to be flexible on that requirement vs the income. I've heard some stories from other landlords that some of their best renters have had some lower credit scores due to bad luck and/or hard times. Thoughts on why you (or anyone else) like to be more strict on that versus income? Thanks.
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Jaron Walling:
@Erik Dofelmier Did you find qualified tenants yet?
I have one good candidate, but he wants to wait until 1 March to ensure he will have the necessary funds. I’m showing it again today in more of an open house style so we shall see.
I had one prospective tenant get offended and cancel on me because I was going to show it again after her scheduled time. She said she felt it was a “competition”. Oh well.
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Michelle Fenn:
I also include in minimum requirements minimum credit score of 600+ with no utility, cell phone, cable or internet delinquencies or collections. I would not include the smoking background and pet policies in every reply. You may be scaring away potential tenants with your long checklist. Better to meet them in person and talk about policies.
Do not feel bad about the 600+ credit score. I recently took a realtor CE course and learned due to all the free money the government passed out during the pandemic only 15% of the population have scores under 600.
Post: Prescreening Prior to Showing & Still Nothing
- Posts 42
- Votes 17
Quote from @Michelle Fenn:
Listing that I have posted since Thanksgiving till now, get requests for information but I have had showings where even the confirmed potential tenants are no-show. I am in the "cold" Mid-west. No one wants to move around the holidays or until the weather breaks. Though I do get interest from tenants with low credit scores and evictions. Even with a slow rental market I still maintain my minimum requirements. I am a PM and I am not getting to concerned until March.
”Thank you for your interest on the duplex located at 1109 Old Georgia Road. The owners require all prospective applicants to meet the min requirements in order to be considered.
Min Requirements:
-Non-Smoker
-Income must exceed 3x monthly rent
-Min credit score 600
-No evictions or unpaid judgements from previous landlords
-Background check will be conducted on all applicants over 18-No more than two pets (dogs and cats) allowed. Non refundable pet deposit of $250/pet with monthly pet fee of $20/pet required. Cats must be fixed and proof will be required
-First month's rent and security deposit will be required
-If you meet these and would like to arrange a showing please let me know.
Thanks,
Erik ”
Is this too forward? I almost never hear back after emailing this.