Would you accept this tenant?
Would you accept a tenant for a $2,150/month rent with the following situation:
- They own 2 restaurants so it is hard to verify their actual income VS the company. They have shown me tax returns for the business.
- I asked for 3 months' bank statements and have about 20k liquid
- 16 derogatory remarks on credit report- (I feel dumb for even asking considering this)
Here is the kicker:
- they own a restaurant and already said "How would you feel if there were occasional workers that stayed here?" - to me this was another way of saying "I am going to have some of my undocumented employees living here (yes they disclosed some undocumented individuals, however, the potential leaseholder is documented)
Someone please talk some sense into me LOL this is my only official applicant as of now. I can get over some of the less-than-ideal here. I am beginning to learn that I may not always find a tenant who is perfect on paper.
#2 All Forums Contributor
- Investor
- Virginia
@Kyle Pierrehumbert
Move on to the next tenant
@Chris Seveney I appreciate your conciseness. You are right.
That's a definite NO. Before you know it, you will have all kinds of people staying there and who knows how many! Can anyone say "open borders?" More people = more wear and tear on your place. Besides, you should be conducting background screening on ALL tenants. No one 18 and over stays in our rentals without a background screening. Keep looking...
A further note: It would be impossible to perform background checks on illegals. You need to consider the safety and welfare of your other tenants (if this is a multi-family unit).
#4 All Forums Contributor
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#4 All Forums Contributor
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You are seriously going to rent to someone that a) has that many negative comments, and b) you know is a lawbreaker (hiring illegals)?
Either one of those is an easy NO!
Hey guys really appreciate the reinforcement of sticking to my gut and staying patient. I feel silly for even posting it… I think this is a you know the answer situation. It just helps to have others that are in this business reinforcing this. I’m new to all this so taking it as it comes. Thanks again.
I just commented on your other post lol. No. Don’t settle because you’re struggling to fill this vacancy.
@Kyle Pierrehumbert No. next tenant.
Stay patient @Kyle Pierrehumbert. 16 derogatory marks and occasional workers staying is enough for a no. Wishing you more prospective tenants come knocking on your door!
Unless this is a WAY above market rent in a state that is very landlord friendly - I would say pass
The fact they already asked means they will 100% move illegal tenants in. Illegal meaning not on the lease. That's a hard pass and it's 1000% worth it to wait for the right fit. That comes from personal experience as a landlord and working in professional property management lol
#2 Classifieds Contributor
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#2 Classifieds Contributor
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@Kyle Pierrehumbert it's easy for all the commentors to tell you to deny these applicants.
REALITY: many tourist-related businesses are having a hard time finding seasonal workers due to lack of affordable housing! So, these restaurant owners are actually trying to SOLVE that problem for their business.
Given it's you're only current applicant, there's some other options:
1) What has their current landlord stated about them?
2) Are they actually moving in or will this be for their workers only?
3) Highly likely the applicants won't be living there. So, you could set up conditions to try to control potential problems:
- Have them pay for monthly walk-thrus to check on condition
- How much extra can they afford to pay?
- Make the lease MTM, so you can end it quickly
- Charge highest security deposit possible
Other random questions:
- Who will be paying you , them personally or their business?
- Make sure you know landlord-tenant laws so you can exit lease quickly if needed!
I would recommend that once you set your rental requirements (And if you haven't, make an actual list) do your best to STICK to them. This is the best way to eliminate gut or emotional decision making. As a business owner you need a systemized way to make a black and white decision, you do not want to have to go on a case-by-case scenario. So whatever you decide, add it to your "policies" and stick to it the next time around.
#4 All Forums Contributor
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#4 All Forums Contributor
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Quote from @Michael Smythe:The fact that these questions are being asked is the only red flag needed (for most people).
2) Are they actually moving in or will this be for their workers only?
3) Highly likely the applicants won't be living there. So, you could set up conditions to try to control potential problems:
- Have them pay for monthly walk-thrus to check on condition
- How much extra can they afford to pay?
- Make the lease MTM, so you can end it quickly
- Charge highest security deposit possibleOther random questions:
- Who will be paying you , them personally or their business?
- Make sure you know landlord-tenant laws so you can exit lease quickly if needed!
My thought has always been that it's better to have an vacant house than a nightmare house.
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@Bruce Woodruff it's a free country, so you can do anything you want.
On the other hand, many people jump to conclusions without all the facts and often don't process facts correctly.
My manager's brother-in-law belongs to a very exclusive country club - they've host PGA events regularly.
They approached our management company about potential rentals that their DOCUMENTED temporary H-1B visa workers could use - with multiple workers staying in the property for the summer.
We couldn't find an owner willing to agree to a short-term lease at an acceptable price.
So, how accurate are your assumptions with the limited data posted?
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It's just simple risk v reward for me. Too many potential renters out there to go in this direction.....
I would drop the rent $100 and move on to find a good family.
Happy Pill Bruce
so negative
@Kyle Pierrehumbert 1000000% NO. Oh, you’re welcome!
@Kyle Pierrehumbert accept them if you like housing court :)
#2 Contractors Contributor
- Severna Park, MD
They own 2 restaurants , but want to rent a house ? I have customers that own restaurants , and they own some pretty sweet houses .
Employees Occasionally staying there , so I would guess they only stay there when they arent working .
I dont know of any employer that has employees over to spend the night
What could possibly go wrong ?
