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All Forum Posts by: Mac Boeve

Mac Boeve has started 9 posts and replied 26 times.

Post: Background Check Dispute - Eviction & Identity Stolen - Grand Rapids, Michigan

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

I've been using RentPrep. It was recommended in Brandon Turners book Managing Rental Properties. It does the trick and uses the applicants SSN. It's the only service I've used, so I can't say how it stacks up to others.

Post: Applicant with a Conservator

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

I have an applicant who has a Conservator who handles all of their finances. Has anyone delt with this before?

From what I've gathered so far, it looks like the conservator is essentially the applicants guardian when it comes to finances. On one document I received it states: "The individual (applicant) is mentally competent but due to age or physical infirmity is unable to manage his or her property and affairs effectively and, recognizing this disability, has requested a conservator's appointment"

It also states the conservator is: "conservator of all assets of the individual's estate".

What I'm wondering is do I need the conservator to also be the co-signer on the lease? Or does them being the conservator already accomplish that? Is there anything else to consider with regards to a conservator?

Post: Background Check Dispute - Eviction & Identity Stolen - Grand Rapids, Michigan

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4
Quote from @Drew Sygit:

@Mac Boeve if I had a dollar for every applicant claiming identify theft, they only cosigned for a relative or friend, they're working out a payment plan on that chargeoff or they have no idea what that is, so it must not be theirs - I wouldn't be here on BP!

Identify Theft: they didn't report it or do anything about it? UNLIKELY! So, they should be able to provide proof of police report and acknowledgement letter from one of the credit bureaus.

Cosigner: only idiots cosign and think it doesn't count against them. Wait until they get garrnished over it!

Alleged Payment Plan: no lender will move forward without sending a letter to them.

Evictions: make a list of the cities showing up on the background check and then log into the corresponding court websites to see if any landlord-tenant cases pop up. 
-Many applicants claim they weren't evicted, thinking it means bailiffs didn't remove them from a property. The fact that a landlord had to even start an eviction is not good.
- Best way to try to hide an eviction or bad relationship with landlord is to claim you were living with a relative and not paying rent or paying them cash. CANNOT VERIFY and they know it!

How are you deciding, "they were a solid applicant based on their application and references"?
-What references are going to give negative feedback?
-Why are you believing what they put on their application without supporting proof?

We use MLS PRD to look up actual owners of properties on application to confirm they aren't giving a family/friend as their landlord (fraud!). We do the same with addresses on their background checks that they didn't put on their application. We then use whitepages.com account to look up phone numbers to call those owners (not always easy).

If they've got bad credit, we also focus on stable income and employment. In addition to a YTD paystub, we ask for last years W-2(s). We'll even call an employer to verify work dates to see if applicant has a solid 2-year work history. Otherwise, how can they have stable income without stable employment continuity?

Of course, this take a lot of time and it's often easier to just deny them.

BTW: what is the Class of your property, as this sounds like a Class C applicant at best, more likely Class D. Only bad things will happen if you allow them in your Class A or B rental!



 Our screening process is quite thorough, though definitely not as much as yours.

When we receive an inquiry, we state our qualification standards. At this point we only hear back from maybe 20% of people.

If they meet our qualification standard (no verification yet unless they've applied through Zillow) we schedule a tour. We send confirmation texts day of. If it's a no call/no show they're out. 

Once we receive an application. We first review it to confirm they meet our qualification standards. If they do, we then reach out to their supervisor, going through the companies directory (not the phone number on the application). We verify everything listed on their application as well as a handful of other questions (using a modified version of the one from BP). We also look up their previous rental properties and landlords listed and verify those are legit. Then we reach out to those landlords with our questionnaires (again modified versions of those on BP). 

Assuming everything checks out thus far, we then run a background check. This was the first time we've had to deny someone based on their background check. 

When I say "they seemed solid" I had verified everything that I could without running a background check. They had met or exceeded all our qualification standards, except for their credit score, because of the supposed identity theft. Additionally: they had a profession job, they were responsive and easy to work with scheduling the tour, they showed up to the tour early, they were well dressed, polite, well spoke, clean, made eye contact, had a well maintained vehicle.

This was the first time we've had a tenant dispute the findings of their eviction report. I did assume the background check was correct and they were being dishonest. But I thought there might be some small chance they were legit, say maybe 5%. In your experience would this be more like 0%? Have you ever had it where a tenant disputed their eviction report and/or background/credit check, and it turned out they were right?

Post: Security Deposit Return w/o Move-In Condition Report - Michigan - Grand Rapids

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

@Drew Sygit 

Thanks, I appreciate all your input on this!

Post: Security Deposit Return w/o Move-In Condition Report - Michigan - Grand Rapids

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

@Drew Sygit

I've been reading through the booklet. Thank you for sending that over.

So if I fail to provide a MoveIn Checklist, the tenant legally can damage the property with no consequence? Even when I have relatively solid proof that the damage was caused by them and their cat?

The tenant moved out on the 4th and I have yet to fill the unit. Mostly because of the repairs and cleaning that were needed. If I were to charge rent for those 20 days (or until the unit is filled), that would be greater than what I would charge for the repairs. 

I had verbal conversations with the tenant regarding damages being deducted from the security deposit, albeit I did not provide the required MoveIn Checklist. I also had a verbal conversation with the tenant regarding not charging them for early termination, but there is nothing signed. Ethically I would feel better if I charged the tenant for the damages, but legally I have better claim if I charge them for lost rent.

What would you do in this situation?

Post: Background Check Dispute - Eviction & Identity Stolen - Grand Rapids, Michigan

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

I recently had an applicant who supposedly had their identity stolen. They had a low credit score but beyond that, they were a solid applicant based on their application and references. I ran a background check through RentPrep and it showed an eviction from a property that was not listed on their application. The applicant claims they were never evicted. However, during that time period, they were supposedly renting from a family member, so I don't fully trust that.

So, most likely the applicant was being dishonest. But it does make me wonder...  

How does one verify that an applicant has had their identity stolen? Assuming it was still in process.

How do property managers handle applicants that legitimately had their identity stolen?

If an applicant had a dispute with their Eviction Screening Report, how should the property manager handle this? Should I deny the applicant, but state that they can reapply once they have resolved the discrepancy? 

I'd lean toward trusting the Eviction Screening Report, but how often (if ever) are these incorrect? Could this possibly be caused by an identity theft?

Thanks!

Post: Security Deposit Return w/o Move-In Condition Report - Michigan - Grand Rapids

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

Thanks @Benjamin Aaker @Drew Sygit

The Move-in checklist is something I've been using, but inconsistently. I have yet to receive one back from a tenant, so I had not been diligent about providing one and/or documenting whether one was provided. I'm 50/50 whether or not I gave one to this tenant, so I'm assuming I did not. Lesson learned though, and I'll be sure I provide one every time.

Typically I hire a company to clean the apartment after a tenant moves out. If the apartment was left in decent shape their base fee is $150-200, and that I would cover. Anything over $200 I would charge the tenant for. In this case I'm having the cleaning company itemize their bill to have a separate charge for cleaning the stained carpet, and I will be charging the tenant that amount for cleaning. I'll list some of the other items (like kitty litter spilled under the fridge and trash under the tub) but not charge for those. 

On top of that I will be listing out every damage that was more than wear and tear, but only planning to charge for the ceiling and cat damage.

I don't think I should have an issue with this holding up in small claims. What I failed to mention before is the tenant broke their lease early. I was fine with that as it's peak season now and their lease was through November. I have a text conversation where I state "that should not be an issue" but beyond that nothing documented stating I wouldn't be holding on to their security deposit. Because of that, I believe I can legally keep the entire security deposit. But I did implied during an in person conversation, that they'd get their security deposit back, if the apartment was left in good condition. So I only plan to charge them for the damages and additional cleaning fees. Do you think this is the best way to go about it?

Thanks again!

Post: Security Deposit Return w/o Move-In Condition Report - Michigan - Grand Rapids

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

One of my tenants recently moved out.

The place wasn't trashed, but seems like they did no cleaning when they left. Visible dirt/dust on almost every surface, trash (including Q-tips) left on bathroom floor, toilet not cleaned, food splatter around kitchen, smudges on walls, windows and mirrors, list goes on... 

There was also some minor damage: handful of nail holes in every room, their cat scratched up some of the trim, a bunch of dings/gouges around the doorways and in the bedrooms, marker stains on the bedroom wall.

More significant damages: The tenant put glow stars up in the kids bedroom. We have older ceiling tiles, so when each star was removed it tore off the surface of the tile. So the entire ceiling needed to spackled and painted. How much of this work should I charge to the tenant? What I'm torn about is that the ceiling tiles were not painted, if I had painted them before hand, there's a decent chance this damage would not have occurred? Does that even matter, or should I charge the full amount for the painting/patching?

Lastly, there were a few small (but very visible) stains around the carpet. The carpet is 3-5 years old and was in great condition. I'm not going to replace the whole carpet. How much can/should I charge for this? 

They only rented from me for 9 months so the "normal wear and tear" should be pretty low.

Unfortunately, I do not have a move-in check list on file. But I have pictures from before they moved in and plenty of pictures of the mess and damages. I have had some verbal conversations with the tenant regarding the move out process, but nothing documented outside of the lease.  

In our lease it states: "Landlord and Tenant may conduct an inspection at the time of possession. ... Taking possession of the Premises by Tenant is conclusive evidence to the fact that the Premises are in good order and satisfactory condition.

It also states: "The landlord shall inspect the premises and itemize damages against and Inventory Checklist. The security deposit will be used to repair any such damages or any other obligation against said security deposit including but not limited, to unpaid rent." There is also some verbiage in the lease regarding cleaning and such.

So, I feel I have some grounds to stand on, even without a move-in checklist. 

Can I legally charge them (i.e. hold up in court if they dispute)?

How much can/should I charge the tenant for the cleaning, minor damages, ceiling damage and carpet damage?

Post: Deposit to Hold vs Signing a Lease Early

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

I have a rental unit available currently with an excellent tenant that wants to move in at the beginning of next month (2-1/2 weeks from now). I'm trying to figure out whether I should have her sign the lease early or go with a deposit to hold. 

She is willing to sign the lease early and pay first months rent plus security deposit in order to hold the unit. Is there any downside doing this instead of a 'deposit to hold'?

Post: Tenant is domestic abuse victim in Michigan house-hack

Mac Boeve
Posted
  • Rental Property Investor
  • Holland, MI
  • Posts 26
  • Votes 4

@Drew Sygit Thanks Drew! There is wording in the lease regarding guests of the tenant not doing any illegal activity on the property, so there may be grounds to evict but I'll check with the attorney first.

There are some city laws here in Holland MI that allow for immediate evictions if certain crimes are committed on the property. I'm unfamiliar with the process however so not sure if these will apply in this scenario, or if s8 will play a factor.

Worst case, the tenant is on a month-to-month lease, so if eviction isn't an option, I can get them out relatively soon.