Originally posted by @Irina Belkofer:
Originally posted by @Peter Sinclair:
What makes you think I didn’t consider the whole picture?
I see a bankrupt applicant with maxed out credit cards, but supposedly has $60k in the bank (not yet proven). She makes $1700 a month, but how much of this is is actually leftover, and is enough leftover to pay for rent? Its not stated. She may get awarded alimony but until then cant be proven.
What did I miss?
She's not a bankrupt - she filed bankruptcy protection to defend herself after divorce.
Her credit cards were not maxed out because she's a crazy spender, it happens during divorces all the time. Bankruptcy will take care of these.
If she doesn't have money in the bank then she won't deposit 10 months of rent, will she? End of discussion right there
She might make zero for now - it's as good as $3K/mo or whatever - her 10 month rent in my account will cover that. For 10 months she'll be on her feet or she will move out.....so what? You've got 10 months rent and possibly good tenant for longer than that. Her children live close by - they always can help, it happens more often than not.
Alimony would help but for 10 months of the rent advance it also doesn't matter.
When you manage other people rentals, yes, you have to follow the rules to protect yourself. When you're renting your own property - it's up to you. As a broker, I'd talk to my landlord client to show all the advantages of the situation and if he'd disagree - it's his loss. For my own rental I'd get this tenant in no time.
I actually had such situation but in my case it was only 3 months rent on deposit. I rejected because it was July and I could end up with empty house in October. Not a good season for rent here.
10 month from now it will be September and there will be apparent if she's a good tenant or can't keep up (water/sewer bills, checking up during regular inspections). After all you can sign 6 month lease and take less money.....if you can't re rent it in June - then it's not a good rental to start with.
After all, what if property is empty until April? Isn't it better to get some rent and then find someone for the next couple years?
But from my experience, these kind of tenants make the best long term tenants, who pay on time. Even on fixed income which is less than 3xrent, they still manage never pay late fees ;)
She filled for ch. 7 bankruptcy... I’ll post a link below that will explain what a joint ch.7 bankruptcy entails
(http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics)
How do you know her credit cards aren’t maxed to her own doing? Please provide proof. Not “she said so”! If I tell you the “global warming is a hoax, I researched it through my friends FB posts”. Would you believe me?
Yup, it is quite obvious that saying you have $60k is not the same as actually having $60k.. Can’t argue against the truth.
“She might make zero for now - its as good as $3K/mo or whatever....”. Maybe something got lost in translation.. elaborate please.
If you applied for one of my units, having the same circumstances (bankrupt, negative credit history, and inadequate income) I would kindly let you know that you don’t meet the minimum qualifications, and I wish you the best in finding a suitable place.
Since I’m from the sunny, Los Angeles area I don’t have to worry too much about a slow season or not having a decent pool of applicants to choose from. So I cant relate to having to time my renters move-in and move out dates based on weather and seasons. So, if the OP has such issues then he can definitely take those into consideration when making his decision.
Its your money and your property, so if you feel like she’ll make a great tenant then that is your personal opinion, and I respect it. This is why the OP created such a thread, to find out the experiences of others and how they handled such situations. While you may disagree with others that go against your opinion, it does not mean they’re wrong.
