All Forum Posts by: Wesley W.

My lease requires that tenants have to pay rent directly to a predesignated bank account:

A. You agree to pay the monthly Rent indicated above via deposit to the following checking account at XYX Credit Union: account # 123456; routing # 123456  (nearest branch is 123 Main Street, CITY). Rent is due in advance and in full on or before the 1st day of each month without deduction or set off. Time is of the essence. Payment may not be made by third party checks. If rent is not paid physically at a branch (i.e. it is paid online or via bank transfer), the date of payment will be considered the date when funds reach our account. Your record of this deposit (via teller slip or online transfer) will be your receipt of payment.

This elimates complextity and the additional steps/rules that come with using a third party to collect rent.

I get an email alert when a tenant makes a deposit, and each rent amount is unique so I know who has paid in case they don't have the teller add a memo to the payment.

They can transfer funds online, or walk in to a local branch with cash, personal check, wampum, etc.  The teller's slip is their receipt.  There are teller notes on all my rent payment accounts alerting bank staff not to provide a balance on the slip if it is not the account owner making the deposit.

I have used this system for 10 years with multiple buildings and dozens of tenants without any issues.

They "paid you back" not because they knew they were foul playing, but to mitigate their business loss due to you not honoring your part of the written contract.  It would cost them more in legal fees/time to take you to court and prove their case, which they would win.

You've obviously never had a tenant move out on you in the 11th hour.  This is especially troublesome with student rentals, where there is absolutely no demand after the summer.

Great example to are making for your daughter, here.

 Thanks for clarifying.  Mine is a fee as well.  Here in NYS you cannot collect any deposit beyond one month's rent, but I was charging this as a fee before the laws changed here in 2019.

What's missing from @Scott Trench's analysis is that oftentimes, GCE legislation is often coupled with rent control (as it is here in NYS).

So, you have to keep this tenant just so long as he is paying, but hey - you can only raise rents 3% per year, and by the way, your city, county & school taxes are going up incrementally more.  Not to mention insurance, LABOR, water/sewer rates, building materials, etc.  So, Mr. "Deep Pockets" Landlord - you need to buy those 50% inflated groceries for your family with less net income.  Hence, the issue with housing in these liberal areas.  People will deploy their capital where it is treated best.  Why would an investor deliberately swim up stream?

These policies take away a property owner's control but leaves him with all the responsibility, and actually hurts the people they are "helping" as @Greg M. points out.  Pretty overt political pandering.

I charge $200 per pet and $20 per pet per month, which is below what most others are charging in my area.  Tenants do not even blink at the cost.

I think I had one prospect push back several years ago.  Needless to say, they were not offered the unit. ;)

I've always responded to what a tenant DOES, never to what they SAY they will do.  With regards to issues involving the contract, it's literally "Charlie Brown teacher" to my ears.

Also, only offering MTM leases allows you to more easily mitigate a tenancy where someone is acting incongruent with your initial impression of them.

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.