All Forum Posts by: Rebecca Coxson

Quote from @Jeffrey McKee:

Quote from @Rebecca Coxson:

@Jeffrey McKee we’re in SC. They just messaged back that the girlfriend also has an offer of employment that would put them at the threshold. Do we take the risk of them moving here from out of state though with offers of employment that can be rescinded? 

 A lot of factors to consider.  Is this a single family? Is the risk more or less than letting it stay vacant?  How long has it been on the market? Can they afford the first months, last months, and deposits? 

They are an engaged couple, but it appears they have been together for at least 8 years. They have two sons together. Her mother will also be living with them. 

they’re going from $1200 rent in NC, our listing is $2400 and has only been on the market for 5 days. 

I think the risk would be going with them as our first tenants. They do not have great credit, and have roughly $80k in combined debt including student loans and multiple vehicles. 

Quote from @Jeffrey McKee:

Quote from @Rebecca Coxson:

We are first time landlords. Our first application came in for our rental, but after taxes their total income is barely 2x the rent, where we require 3x rent. What is the proper way to deny them? Do I have to send an adverse action letter? 

What state is your property in?  Are you using a digital or paper application?  Curious from the tenant's perspective. Do they have a copy of their application and or your rental criteria?  I have seen strategies where you don't actually charge them for a background check or credit check but just start with a simple form and if it doesn't check out then move on and don't charge them and simply state their application didn't meet criteria a,b, or c.  

I am reading that in the state of Texas if a landlord rejects an applicant without providing a written explanation of their selection criteria, the landlord is required by law to return the application fee and any application deposit. If the applicant requests it, the landlord is required to mail the refund to an address that they provide.

Here is the source of the additional tenant screening law in texas. 

https://caretaker.com/learn/te...

Sorry, we are using TenantCloud. We did talk about refunding their background check fee. We did not charge an application fee. 

Quote from @Bob S.:

Quote from @Rebecca Coxson:

We are first time landlords. Our first application came in for our rental, but after taxes their total income is barely 2x the rent, where we require 3x rent. What is the proper way to deny them? Do I have to send an adverse action letter? 

 1ST thing you need to do is HIRE a PM co. learn then go on your own, 2nd its GROSS income not net,

All the best 

 Yes I think we’re definitely headed towards a property manager. I just don’t know how to handle it from this point since we have an application in.

@Jeffrey McKee we’re in SC. They just messaged back that the girlfriend also has an offer of employment that would put them at the threshold. Do we take the risk of them moving here from out of state though with offers of employment that can be rescinded? 

Is this an appropriate response, 

“Thank you for sending that. We have reviewed your joint applications, and presently your total household income doesn’t meet the qualification for rental income (income 3x rent). Good luck with your rental search. Sincerely, Rebecca”

@Kevin Sobilo so in that case where we can see what their total amount of debt and payments are because of their credit report, doesn’t classify as denying them due to the info in their credit report? That’s part of my concern. The total gross household income is not the standard 3x rent. 

Thank you! I thought we were pretty well prepared going in, and now I feel like we know nothing haha. 

We are first time landlords. Our first application came in for our rental, but after taxes their total income is barely 2x the rent, where we require 3x rent. What is the proper way to deny them? Do I have to send an adverse action letter?