All Forum Posts by: Jaganath Dabbi

I own a single-property home in Delaware. I have a renter with a questionable credit history. As a safety net, the renter offered to pay 12 months' rent in advance along with a month's worth of security deposit.

1. Is this legal?

2. Does the 12-month rent have to be put in escrow?

Thanks

 Matt - Thank you. What does maximum rent received mean?

Greg 

thanks for the advice. What happens to the remaining escrow if they break the lease early and vacate. Does the amount remaining in the escrow have to be returned to the renter. 

Situation:

I have an older lady who called me up with a sorry story that goes something like this. She is 65 years old and her husband is 80. She has a son who came out of a nasty divorce and is now with his 3 children. One of the children is a special needs child. Since the lady cannot take care of the children full time, the son does and so does not work. They had a home in Wilmington, Delaware that they sold and wanted to rent back but she says her daughter-in-law did some things so they are not able to rent back. Hence, she needs to find a home ASAP.

Bottom Line:

Occupants: 3 adults and 3 children

Income: None

Credit Score: She admits it is poor

Other Checks: She claims she will pass all other checks such as background check

Lease: 12 months

Terms: She is willing to pay 12 months of rent upfront.

Questions:

1. Would you rent to her? I feel sorry for her and would like to help if it does not risk me. It is Thanksgiving, so helping the elderly and needy has me in a bind. I am not really a big-time rental investor but one with a single home

2. Is it legal to take 12 months rent upfront in Delaware

Thanks in advance for your help.

Thanks to all who replied. I decided to pass on the renter based on the general consensus advice from all of you. 

Thank you Julie.

Julie - Thank you for the response. Adding more color, it can help others also. PLease read context below. I am incline to reject. Your final thoughts please. Thanks again.

Main renter - Divorced. Claims self-employed. No paystubs. 

1. 2 years tax returns: She claims she is in a commercial real estate partnership with her ex. Tax returns show all income from K-1. I do not have the K-1. 

2. Paystubs: She says she throws them away and dows not want to ask her ex- for paystubs

3. Bank Statements:  I have 6 months of statements. Each month except one, she has 24K deposit. Dont know the source. She has a money market account with the same bank worth 800K. Each month her payments are around 50K. So, way more than what she gets in. So, she is drawing down on the balance of her checking account. 

4. Background Check: Clean

5. Credit Score: Clean. Score is 750+

Co-Renter - Boyfriend. Ex-marine. works as a school teacher in MD. October paystub shows employment in MD. Paystub address is not his current address. His payments (monthly - mortgage and credit card) is more than his salary

Background Check: Clean

Credit Score: Clean. Score is 748

I am a new landlord so please bear with me. 

I have 2 adults in the family renting. The lady is the main renter and her boyfriend 
1. Do I get applications from both? 

2. Do I require 3x income from both?

3. Do. I rent if they meet income (3x) qualifications but other debts monthly payments are very high (they are currently not renting and the main renters last 6 months debt payment is more than 100% of income since she is pulling out from savings)?

thanks

I am renting a 2000 sq ft single-level single-family home in Millsboro, DE. All the prospective renters have dogs more than 25 pounds or in the restricted breed list: 

American Bulldogs
America Bully
American Pit Bull Terriers
Boxers
Staffordshire Terriers
Rottweilers
Akitas
German Shepherds
Doberman Pinschers
Mastiffs
Malamutes
Great Danes
Cane Corso
Chow Chows
Huskies
Wolf Hybrids

I am curious how people on this forum apply weight and breed restrictions to renting single-family homes.

Thanks

Dmitriy - Thanks for the response. I am looking for not the investment account that you so rightly pointed out but the bank account. Etrade has a business checking and a trust account. I need to open the bank account in the name of the trust with its EIN. Have your clients used one of them successfully. If so, which one.

Thanks again.