All Forum Posts by: Rick S.

Dustin, could you collect deposit and first month's rent then collect the last month's rent over the first few months of the lease with a payment plan?   

@Deborah R. we work with SmartMove, however check with Rentprep if the credit report could be added to the existing report you already have.  

@Deborah R. if you can get the full credit report that should provide more details on the tradelines and history.  If they have medical debt on the history that is always taken into consideration by some landlords.  You need to be able to see the payment history as that is very helpful.

The report should also list the debt amounts so you have a better idea of whether they can afford the rent in addition to the monthly debt payments they make.  

@Robert Polyack good question as my first thought is always to get rid of the sensitive information, however you may want to keep the applications in case a Fair Housing complaint was ever filed against you.  I found these two items that state the statue of limitations is two years in regards to Fair Housing:

https://fairhousing.foxrothschild.com/2013/12/arti...

https://www.thespruce.com/before-you-file-fair-hou...

I haven't dealt with a Fair Housing complaint so maybe someone else can confirm how important having the application is when dealing with those complaints.  Thanks.

@Sean Haardt if you don't find one with your local landlord association here are a couple to try as they have state-specific leases:

www.rocketlawyer.com

www.lawdepot.com

www.ezlandlordforms.com

The first two have yearly subscription options, however you should still be able to purchase individual documents without having to sign up for the subscription option.

@Jehan Jaleel besides the advice given already before you start accepting applications make sure you determine your rental criteria, such as a minimum credit score, income-to-rent ratio etc.  I usually see people using a minimum income ratio of 3x the rent and 600-650 for the score but search the discussions for more information.

Use the applications as part of your screening to make sure they meet your criteria as you will only request a background check for people you are considering that meet your criteria.  Ideally find a free application so that you only have to charge people that you actually run a background check on.  It can sometimes deter people if they have to pay just to apply. 

@Robert Lee I don't know of any specific laws for CA that require a separate bank account or interest to be paid on the deposit, however I would not recommend investing it.  I would recommend keeping it in a separate account for tracking and not mixing it with your personal funds.  

CA deposit rules:

https://www.thebalance.com/california-security-dep...

@Nicholas Zeiler you could just have them list you as an "Additional Interest" on the policy so you are notified of any changes to the policy, such as if it is cancelled or lapses.  

@Shaun R. most banks won't let you use the LLC name for the loan so some people will use a Warranty Deed or Quit Claim Deed to change the deed from your personal name to the LLC. Search the forums as there are some other posts on here with more information on that and there are issues to be aware of, such as the due-on-sale clause.

Even if you cannot switch the deed you could possibly have the lease list your LLC name as the person the tenant is signing the lease with. Check with a local lawyer though on options as having the LLC protection is recommended a lot on BP by others.

@Steve Hodgdon let me know if you need more information as I can message you more details or we can have a quick call if needed.  Thanks!