All Forum Posts by: Patrick Rose

Answer me this, please... Do you screen candidates the same as you would for a straight rental lease agreement? Or are there different criteria by which you screen for a lease/purchase option situation? Thanks.

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Originally posted by @Jason Hammond:

Whatever you do, the hoops that you show your willing to jump through at the beginning will become expected of you later on. Is that time you would invest worth the income received?

Thanks for this perspective.

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Well, I guess what I'm hearing here is that if I have a good candidate, I don't need to get creative with the lease structure. After reading your comments and speaking with some trusted advisors locally, I've decided to cut this applicant loose. Maybe I was trying too hard to make it work. Thanks everyone for keeping me focused!

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Originally posted by @Hai Loc:

@Patrick Rose

I did this twice and got burnt. Will never do it again..

I would only do it for a foreign student..

Sometimes you get desperate finding a tenant but its always worth the wait.

Thanks for sharing your experience. Were you burned because of the bad candidate? Or did the structure of the lease cause a problem?

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Originally posted by @Arsenio Braza:

@Patrick Rose

Be careful there are people who rent the rest of their life, I call them "professional renters" and they know how to go around, make sure your agreement is straight forward,firm but just, because they will sense if you are a real deal landlord, I am a landlord for 11 long yrs. Hope this help.

Thanks for the advice. I'm about 4 years into this and always learning!

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Originally posted by @Arsenio Braza:

@Patrick Rose

Make your agreement straight forward, if you make a game, they will too.

Thanks for this perspective. I had not considered that this structure might alter his attitude.

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Originally posted by @Michael Sloan:

@Patrick Rose

I would rather collect a larger security deposit than deal with more complicated lease terms. In Texas you can collect an amount equal to two months rent as a security deposit

With your front loaded rent are you going to set money back every month to cover expenses that come up during the back half of the lease?

Yes, I would not touch the rent money over the term of the lease, so I'm not concerned about not having funds saved at the end of lease. I thought about an increased security deposit, but I thought that SD could only be used for damages, and not be used to cover unpaid rent. Is that not correct?

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Originally posted by @Patricia Steiner:

His bad credit tells you what you need to know about his (lack of) respect for adhering to agreements he makes. Even if you collect all the rent upfront, there's no guarantee that he will follow the other terms of your lease. It's entertaining that he has high income - but doesn't pay his obligations. He's high risk...I'd hold out for a quality tenant.

Thanks for the advice. I will consider you thoughts on holding out for a better tenant.

But to further the discussion and at the risk of sounding like I'm defending him... his low credit is the result of collections on school loans. He has recently entered a repayment plan for this. Otherwise, everything else checks out on his credit and income, and background. And, yes, his income is entertaining.

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Originally posted by @Jaron Walling:

I don't know how investors operate in Wentzville but that type of lease structure seems risky. It's complicated for the tenant and complicated for you. If the applicant doesn't meet your requirements what's wrong with screening one more?

Yes, he is below my credit score requirements, but whole-picture I would take him - as I have had success with others in similar situations. I'm just trying to be creative this time and see if there are ways to build some insurance into the agreement to where I've already collected a bulk of the rent if things go south.

And, yes it's a bit complicated, but this particular applicant is bright, and I am confident the two of us could work through it smoothly.

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It's a B+ SFH, 3/2.5, @$1500/month. So my lease would look like this:

Months 1-6: $2250

Months 7-12: $1500

Months 13-18: $750

It all totals the same over 12 months, but I benefit if he breaks the lease early.

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All Forum Posts by: Patrick Rose

Patrick Rose has started 4 posts and replied 19 times.

Post: Lease/purchase option screening criteria

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?

Post: Front-loaded rent payments?