All Forum Posts by: Account Closed

@Kyle Civittolo 

In that way, the call is not totally unsolicited and you show that there is a real person behind the letter.

How about sending mail and then calling? They'll have your letter and you can ask them if they had any questions for you, etc.

@J Scott 

you made me snort milk through my nose.

But listen, I'm an investor and not someone buying my forever home. I don't think I'd have the nerve to make such a low ball offer but the approach I used on a recent purchase was to go in a bit lower than I suppose the seller was hoping for. I was very respectful in explaining why I got to the number I did. I told them I totally understood that my offer was not their first choice but that I was offering all cash and closing in less than 30 days. Their apartment had just come on the market and I was sure they wanted to wait and see if better offers would come along, etc. Then I was patient and it took about 6 weeks but the guy saw the value in my offer and now I'm busting my *** to make sure that the closing happens. Should all be done in another week or so. 

@Wendy Vaidic 

not as nice as it must be by the beach!

It's not so much that they are dishonest, but they are trying to sell you something and want to make it look good. Also, asking for substantiating documentation is a good negotiation strategy. "Oh, you didn't keep detailed records of tenant receipts, I'll have to take something off my offer because I don't know what kind of risk I'm taking on".

I recently bought a condo and by reading through the last two years home owners' association meeting minutes, I could see that there was some major maintenance projects coming up (read: special assessments that will come due) in the next 2 years. I expressed my doubts and adjusted my offer accordingly.

Good job.

Any deferred maintenance? Make sure you put some money aside each month so you can start catching up. Unless they're newly renovated and pretty, which I doubt if the tenants have been there 5 years plus, you should keep in mind that you will probably have to do some work if you have any turnover.

@Wendy Vaidic 

Always nice to run into a fellow Wendy!

For 2-5, you can ask these questions while looking but make sure, in the event that you make an offer, that you make receiving documentary evidence prior to closing. If the owner says he has every apartment fill and the rent checks are falling into his bank account every month on time, he needs to give you proof of this. You need to see the leases, when the rent checks get paid, actual receipts of when that roof was replaced, etc which show that the work (especially major items) was done by licensed contractors and so on.

@Shane Matzen 

I have a property management company that does this for me. But the idea is that you are clear and up front with them and they decide whether or not to go ahead with the application. For example:

Landlord: Let's go through some of the criteria I have for renting a property to you. I want to let you know what I'm going to check for and how I will check it through the application process. First, you will be required to earn at least three times the rent. To verify this, I will request 3 most recent paystubs. Your paystubs should confirm that you have earned at least (insert $ figure based on the rent) in each of the last three months. Will your paystub show an income of at least this amount? 

Landlord: I require a credit score of at XXX or higher. Have you checked your credit score recently? Will you be able to meet this criteria?

Landlord: Another criteria is that you have been in your current employment for at least 12 months? If I call you employer will they be able to confirm this?

etc, etc.

Landlord: So based on your responses it sounds like you would be a great applicant to rent this apartment. Here is an application form that you will need to fill out, please be sure to include all the requested documentation (e.g. paystubs) that are requested. The last page is the list of criteria that we have just discussed in case you want to go over that again. The application fee is $X. This amount is non-refundable if your application is not successful but we will credit you this amount on your first rent statement if you are are. Do you have any questions for me? Do you plan to go ahead and apply to rent this apartment?

OR

Landlord: Based on our conversation it sounds like you don't meet all of my criteria and your application will not be successful. Good luck in your search. (At this point you could mention if you would be willing to accept a co-signer on the lease - the co-signer will need to submit to the full application process and meet all the criteria as if they were living in your unit)

In the latter case, I would do a quick note to file of your conversation with the prospective tenant and the responses they gave that did not meet your criteria. In case it ever came up that they claimed you discriminated against them, you will have something to refresh your memory.

Are you planning to charge tenants an application fee? A good screening service won't be that time consuming so if the cost is bothering you, its quite normal to charge an application fee. This should weed out the more serious prospective tenants from the tire kickers.

Have a clear screening policy of what you will and won't accept. Write it all down. And then check each and every tenant against each and every criteria. In this way you are fair and consistent in your treatment of prospective tenants. Go through each of the criteria to let them know what you will be checking for, if they balk at the prospect of you calling their employer or checking the criminal history, etc, they're probably not going to pay the application fee.

I understand you're really asking about the gut feeling aspect but generally, if you have comprehensive criteria for tenant screening, chances are the tenant who doesn't meet your "gut" test won't meet at least one of your criteria. 

Buy everything on credit card. Don't worry, I hate owing money (other than on houses) but I deal with my angst by paying it off weekly. Showing you use credit, even small amounts, and that you pay it off in full regularly will go a long way.

If you're living at home, what about putting one of the utility accounts in your name.

Yay you!!!