Who would you rent to?

Discussion in 'Credit Talk' started by galabar, Aug 7, 2003.

  1. galabar

    galabar Banned

    Maybe we can turn things around a little. If you were a landlord, what criterion would you use to rent out your property? If you were a mortgage, auto, or credit card lender, what would you look for in a potential client? Also, if you were any of these things and your client wasn't paying, what would you do? How far would you take things?

  2. jsummers

    jsummers Well-Known Member

    Being a landlord, the one thing that counts more than anything is past rent / mortgage payments. It is so hard to give someone the boot if they dont pay rent.. So finding a person you can trust in your property is very difficult. Overall credit rating is also important to me.. But I will rent to them if they have a valid excuse.. Divorce.. being one of them..

    If they are currently late on credit cards.. I would be concerned unless I saw in the credit report they have been late in the past.. and can verify that during that time their rent was still being paid on time.
  3. 95207Chick

    95207Chick Well-Known Member

    You can rent to me! I have low credit scores in the mid-500's yet I have never been late on rent or utilities in the 11 years DH and I have been married. In the times when things were bad for us financially the most important thing was keeping a roof over our head, electric on, food on the table. Even if it meant skipping the CC payment.

    Yet here in Stockton, CA as most places they look FIRST at credit score. My stellar history with rentals meant nothing. The reason I have moved in the past is rising rent. With a husband working at the same income for years we have to keep our rent budget constant. Our latest rental is a 3 year lease so we don't have to deal with increases. I am a great renter, pay on time, don't call for minor repairs I can do, etc YET I am low quality rental candidate because I have a low credit score/bad credit.

    Another way the "system" screws you...
  4. lbrown59

    lbrown59 Well-Known Member

    Another way the "system" screws you...
    What scoring is all about.
    THE END ** *** ** LB 59
  5. humblemarc

    humblemarc Well-Known Member

    what exactly is the POINT of this question???

    I don't think anyone on this board has said that OC's trying to collect their money is wrong or unjust. It's when they(OC/CRA/CA) RARELY, IF EVER, follow the LAWS instituted that people complain or just plain exercise their rights re: the VIOLATION of those laws.

    BTW- i AM a landlord and i can tell you that CASH is still KING. if someone with bad credit wants or is able to leave a considerable deposit for me to overlook their past financial difficulties then I am more than willing to look past their credit.
    And in case you haven't noticed, lenders have been lending to people with "horrible" credit for years, and even more so recently. It's called risk tolerance and return on investment.

    GEORGE Well-Known Member

    Re: Re: Who would you rent to?

    A $2,000 DEPOSIT would work wonders...

    Just make sure it is used against future payments starting like in month 10 or so...till the "NORMAL" deposit is there...like if it is $500...

    GEORGE Well-Known Member

    Re: Re: Who would you rent to?


  8. zerodown

    zerodown Well-Known Member

    Re: Re: Who would you rent to?

    The only group you can safely deny renting to is white, middle age, non-disabled males. With anyone else, you run the risk of discrimination charges.


    GEORGE Well-Known Member

    Re: Re: Re: Who would you rent to?

  10. cinderella

    cinderella Well-Known Member

    Here is what I would recommend based on my experience, which included a former crystal meth. addict that has caused me to RETHINK EVERYTHING! I paid him (he had a wife and three kids) $1800 to leave and another $5k in damages to the house, he **trashed** it. Since he left our house, I have been keeping *tabs* on him, he has been evicted from two homes, which amazes me HOW HE got in there in the first place, but I'm sure those landlords probably lost a good chunk of $ with him.

    1) Credit reports-----> past rental problems and recent derogatories should be a red flag. Individual owners, as opposed to managed complexes, really don't do these reports as often as they should.

    2) References----> some individual owner's seem to think this is the holy grail of judging a prospective tenant. You know, a weasle can get a friend or someone else to lie for them. You never know, you could be getting a ref. from the prospective tenant's brother. I put more weight in ones coming from managed complexes. Frankly, if the tenant claims to have lived at a certain place, I would ask if the tenant would mind me checking with their NEIGHBORS.

    3)Keep an eye out for certain tenants that may have a drug problem (crystal meth/speed/heroine), scary stuff. This should be up their with checking credit reports. You rent to someone with one of these problems, expect to pay a huge sum in REPAIRS...not to mention you will likely have to evict them. Once again, I think a former NEIGHBOR would make a great reference.

    4)And of course....cash is the best. As a landlord, you really need to protect yourself and require a full months deposit. And certain credit risks can be compensated for with larger amounts of deposit.

    And if you have a **dud** as a tenant, be prepared to move quickly.
  11. lbrown59

    lbrown59 Well-Known Member

    People on welfare are a red flag.
  12. cinderella

    cinderella Well-Known Member

    Also, as far as checking for bogus references, I recommend doing a quick online property search and make sure the owner of record matches the tenant's given reference for that address.

    But even if an owner of record search matches the tenant's given reference, it could still be a friend/relative. You can always cross-reference the address to see if it shows up on the tenant's credit report......
  13. humblemarc

    humblemarc Well-Known Member

    the all-time best way to check "references" witha questionable tenant is to do a unexpected "visit" at their current residence. . . to drop of some papers or some such thing "while in the neighborhood".

    You'll get a GREAT idea of what type of tenant they are from that.

    Of course, nothing is 100%. . not credit reports, nor references, nor a 12 month pre-paid lease. . . .
  14. Genius1

    Genius1 Active Member

    I do consulting work for many individuals and companies that own rental properties...

    here's my summary of what you should look for and do...

    1) Have potential tenant pay a $25 fee for credit check
    2) Get copy of drivers license and social security card
    3) Call place of employment for reference check
    4) Do not state that security money is first and last month rents - it is what it is a "security deposit"
    5) Write in lease that every 90 days an inspection will be conducted for exterior and interior damages - tenant has 15 days to repair (by professional) any damages or be billed by Landlord for work
    6) Also write in lease that tenant agrees to abide by the laws in your state - no illegal drugs of any kind are permissable - if drugs are found on premises tenant is in violation of lease and will be evicted
    7) State exactly when rents are due - give a discount if rents are paid early (example: $700 due by 5th of September - $675 if paid by August 20th)
    8) a 2.5% premium is charged per pet per month (so if tenant has a cat and dog the fee is 5% - if normal rent is $700 - then premium is an additional $35 per month)
    9) Tenant is responsible for cleaning of the carpets every year (done so by a professional company - copy of invoice must be submitted)- and also upon moving out.
  15. FedUp2003

    FedUp2003 Well-Known Member

    Everything is okay except for the carpet cleaning. Don't know about where you are from, but in NC the laws state that the Landlord has to put fresh paint on the walls every 7 years or when a new tenant moves in, and the same for carpets, plus the carpets have to be cleaned every year or two by the landlord. If tenant had pets, new carpet goes in when a new tenant moves in - no matter how new carpet is.

  16. Genius1

    Genius1 Active Member

    NC is a nice place - was there visiting clients in Asheville - yep, rules in NC favor the tenant.

    But if take the time to get a lawyer to review your lease and make suggestions first - you will have a happy situation.

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