All Forum Posts by: Wesley W.

When I offer to proceed with an applicant, they have 24 hours to put down a binder payment equal to one month's rent.  At that meeting, I have them sign this contract to hold.  Due diligence takes a few days, so I make the date for the lease signing between 5 and 7 days of the signing of this contract.  I also continue to market and show the apartment during this time up until a lease has been signed and all move-in fees are paid in full in guaranteed funds (cash or wire only).  I do not accept personal checks under any circumstances for these move-in funds.

This agreement is between_________________________________________, hereafter referred to as

“Prospective Tenant(s),” and ____________________________, hereafter referred to as “Landlord.”

Landlord acknowledges receipt of payment in the amount of $___________ from Prospective Tenant(s) as a non-refundable binder for the property listed above. Prospective Tenant(s) understands the binder reserves the property for Prospective Tenant(s) until a Lease and all move-in requirements have been properly completed or Landlord exercises his right to rescind. The Lease and all move-in requirements must be completed before 5:00pm on _(one week MAX)___. Prospective Tenant’s move-in date will be on or about ____________________.

Landlord’s Right of Rescission

Landlord has a right to rescind this agreement at any time between the date of its signing and the mutual signing by Landlord and Tenant(s) of a rental agreement offered by the Landlord. If Landlord exercises this Right, binder funds will be mailed within 7 days to Prospective Tenant(s) at a current address listed on their application(s).

Move-In Requirements

First Month’s Rent must be paid in full in the amount of: $__________

Security Deposit must be paid in full in the amount of: $__________

Other Move-in Fees must be paid in full in the amount of: $__________

All tenant paid utilities must be transferred into Prospective Tenant’s name.

Background checks done on all occupants aged 18 and above.

A Lease must be executed and signed by all parties.

When all move-in requirements have been met and Prospective Tenant(s) given possession of the property, the binder will be used as the tenant’s security deposit. Prospective Tenant understands and agrees that no possession of the property will be granted until all move-in requirements have been completed.

Binder funds will be held in a trust account by the Landlord. If for any reason, the Prospective Tenant(s) fail to complete all move-in requirements by the above listed date, the Landlord will return the property to public offering and the entire binder sum will be forfeited to the Landlord for expenses including, but not limited to, lost rent, holding costs, advertising costs, and marketing costs.

I use the average credit score of all of the adult occupants measured against my minimum.  Also, each tenant is jointly and severally liable for the contract.

I disagree with this philosophy.  I am choosing the most qualified applicant from the pool of applicants.  For now, NY still allows landlords to choose, rather than "first qualified" like they have in places on the Left Coast.

Our application has a release for information included, which becomes usable once they sign the app:

AUTHORIZATION TO RELEASE INFORMATION— The landlord or landlord’s representative who will verify information is (PM name). By signing below, applicant(s) give permission to (1) current and former employers to release any information about applicants’ employment history and income history to the above named person;

(2) current and former landlords to release any information about applicants’ rental history to the above named person; (3) current and former mortgage lenders on property that applicants’ own or have owned to release any information about mortgage payment history to the above named person; (4) bank, savings and loan, or credit union to provide a verification of funds that applicants’ have on deposit to the above named person, and (5) to the above named person to obtain a copy of applicants’ consumer report (credit report) from any consumer reporting agency and to obtain criminal background information about applicants. All such information hereon, and released as authorized above, will be kept confidential. This application is for qualification purposes only. Applicant understands that landlord may accept multiple applications for this rental unit and retains sole discretion to select the most qualified applicant. APPLICANT REPRESENTS THAT THE INFORMATION SET FORTH ON THIS APPLICATION IS TRUE AND COMPLETE. Material misrepresentations or omissions on the Application will constitute a default under the Lease or Rental Agreement between the parties, and applicant will be responsible for the cost of any background checks performed. This application may not be considered eligible for evaluation if it contains blank spaces or incomplete information.

 On the app, I also ask for their direct supervisor's work LANDLINE, as well as their work email.  This circumvents HR, which usually just sends me to The Work Number, one of the most useless companies since the establishment of western civilization.

Quote from @Joaquin Reyes:

Thank you Chris and Roger. Attached is a picture of the section for terms. What do you think?

 Yeah, okay so read the OR laws with regards to tenancy.  ;)

I do exactly what @Nathan Gesner describes.

Actually, all of NYS (including NYC) has a maximum late fee of $50, or 5% of gross rent - whichever is LOWER.  It has been this way since 2019.

NYS now has statewide rent control (also since 2019) - each municipality need only opt in.  Ask all the class C tenants upstate how these legislative "aids" are helping them?  When I post an apartment for less than $1000, I get HUNDREDS of applicants within a week.

Rent control does nothing to help increase the supply of affordable housing. It disincentivizes investors, whom divest from these areas and take their money where it's treated fairer.  There is in an increased risk and less reward now.  Why would someone swim upstream with their business if they had a choice?

As someone already stated, this is 100% buying votes and actually hurts the demographic they are pitching it to.  Business facts don't care about your feelings or intentions.

We've been living with this albatross around our business' necks for 5 years here in NY.  Go ahead and ask the resident tenant base if that's increased or decreased the availability of affordable housing in the last several years.

Absolutely.  Some people use bank statements, but I am more comfortable using tax statements (e.g. 1099).  My feeling is that the tax evasion thing cuts both ways.  If they are underreporting their income to the IRS, I cannot guarantee that the revenue actually exists.  That's exactly how a lender or creditor would treat the situation, as well.

@Account Closed All good ideas, most of which I was not aware of.  As stated, this is not my lane in the industry.