All Forum Posts by: Daniel Miller

Oh!! I like that... that way, I can take deposits only from those I'm actually preparing to research (which won't be most of them...)

This topic is the one that I am *most* uncomfortable about, among all the things involved in renting a house - The up-front fees for submitting an application.

Okay, we want the applicant to to pay us for running their credit reports. No problem, and I'll demand cash for that. In addition, we don't want to do alot of work to check out an applicant, call to tell them they are accepted, and have them say "never-mind, I already found a place somewhere else"... Yes, I understand that if I take a check for deposit to ensure the applicant is serious, but then they back out later on, they almost certainly will stop payment on the check, and lose $20 or so instead of $200.

But really, if one applicant back down and I have other applicant, have I *really* lost all that much??

For a moment, let me skip the pros and cons of those arguments. What I'm finding in three viewings so far, is that *nobody* has had $225 to $250 in their pocket. Frankly, *I* never have that much cash in my pocket, I feel it just makes me a target for lurkers in the world. Besides, I manage almost everything by credit or debit card these days. (Let me note that there are not many banks near my parents' house; sending them to a bank on Saturday would likely be very awkward.)

Anyway, tomorrow I am going to be showing the house to at least 5 people, with one more unknown. I showed it to a surprisingly normal person today; he did not have $200 in his pocket, but he paid $25 cash for credit check, and is willing to include a check for the deposit when he sends the application - except that I'd actually prefer that he sent the application via email, and he can't sent a check that way.

So what do I do, reasonably?? My first appointment tomorrow is at 1200, and they run to 1500 so far. I'm pretty sure all local banks will be closed by the time I can ask a prospect for a deposit. I'm also pretty sure most or all prospects will not have that kind of cash in pocket. If they want to deliver it later, they have many ugly options (and no good ones, AFAIKT)... mail a signed money order?? mail cash?? Drive to Fremont to hand over the check?? (The latter is a *really* unpleasant option, especially in afternoon commute traffic.)

Frankly, I'm inclined to drop the early deposit, I don't think I'm running that much risk!! I'll take $25-$50 non-refundable fee for checking credit, and leave it at that...

Thoughts??

You want to hear something funny? I am both relieved and disappointed by this result... I was curious about their situation, and actually looking forward to finding out what was at the root.

Consider: they were probably *not* on the verge of foreclosure (I don't think), because I have their last two bank statements and they had paid their $4900+ mortgage on time both months. They were also paying a variety of other significant expenses reliably; their cash-flow was *huge*, yet not stretching their resources.

(BTW, are these inappropriate comments for me to make?? I'm hoping that since I've given no details about them, I'm not violating privacy concerns. SysAdmin: if this is wrong, please just delete my post...).

There were several odd things, especially "payroll receipts" generated by obviously cheap software - but that wasn't necessarily nasty, since they operated their own small business, and could reasonably be using accounting software from any cheap source. I have confirmed via multiple sources that the business had existed for more than 10 years.

In today's digital world, 10 or 15 days is a fair bit of time for me to do research. I felt that I had time to delve into them a little more, and get some interesting insight into an odd world, and if things didn't work out, I would still have (well, I hope) other options to research when I show the house today and tomorrow.

But, well, this is valid data too... and the world moves on!

Wouldn't you want to wait for the estate to be settled legally? I know that can take awhile if probate is involved, but a court (or a lawyer, if probate is not required) will decide exactly where every dollar goes. I was executor for my parents' estate when mother died (it had to go through probate, for reasons that don't matter here), and at the end the court document included two pages of specific addresses and dollar amounts that I was required to settle.

Well, they managed to simplify this situation for me; I got this email from her this afternoon:

I wish her alot of luck if they really cannot wait two days for someone to get their documents in the mail!! I have a hunch they've owned that house for a long time, and don't understand what renting is about... I sent them a courteous response wishing them luck in their search. (this was *very* odd, since they didn't even want to move in until the 27th, so we had *plenty* of time to do all this! Although it was getting complicated, I did not have the sense that any insurmountable problems were present.)

Hopefully my next interviews will be a little more... conventional??... I had one today, who didn't do anything weird, and I have at least five more lined up for tomorrow, at half-hour intervals.

Kyle J.: well, it looks like I won't be getting detailed credit reports then... I don't have a separate room with a lock on the door; I don't do this for a living, I'm just trying to rent out my dad's house. Hopefully I won't need such detailed information.

Jon Holdman and Steve Babiak;
Do these sites actually verify that you have this equipment, or is it just check-boxes? Do you actually let somebody into your home to look at your office, for this or any other reason??

Good points, Steve Babiak;

> That's *very* valid about the application fee, and making it too easy to apply. I'll drop that thought entirely...

> I'm also going to start asking questions about why they are moving... that will also help me evaluate ambiguous situations such as the one that I've been discussing here.

hmmm... in her earlier emails, she had said they were selling the house and sale would close at end of month. If that was true, they should have bank/real estate documentation which documents this, yes??

This *does* feel odd... she sent me an email a couple of days ago saying "my husband and I are very excited to move into your house!"... but her husband has not seen it, she came alone to the viewing... now he *may* simply be the type that says "yes, dear, whatever you want..."; that's certainly how my parents operated, she made the financial decisions (for 55 years), he just signed where she told him to. Nonetheless, it's left me with a funny feeling, though nothing concrete to base it on...

I'm glad I didn't stop showing the house once I got their application (I made that mistake last weekend with the first applicant).

extract from article in SfGate (KTVU website):
"The average asking rent at buildings with at least 50 units in Oakland hit $1,925 in the third quarter, up 19 percent from the same time last year, RealFacts said. That figure averages rents for units ranging from studios to three bedrooms, but the trend is just as pronounced for each size. One-bedroom apartments, for instance, were asking $1,761, a 20.1 percent increase from a year ago, RealFacts said."

That makes my $2700 San Jose house seem not so absurd...