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It is currently Thu Dec 18, 2014 7:25 am




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 Post subject: Rental Property: Prospective Renters
PostPosted: Thu Aug 28, 2014 6:04 pm 

Joined: Thu Aug 28, 2014 6:03 pm
Posts: 1
We have an offer to rent out our property but the prospective tenants have some questionable history. Low credit scores (low 500), unpaid medical bills, a few collection agency accounts, supposedly never late on rent. One of the tenants has a misdemeanor (Resisting Officer Without Violence (Resisting Arrest)), found guilty.
We've rejected the offer because we were pretty sure this is not our cup of tea, but they came back asking if we would consider if they would pay 6 or 12 months up front. This is a brand new house and we'd like to find easy renters. Having an offer to pay 12 months up front is tempting, but what kind of issues could we expect down the road? This is our first renting experience and we would appreciate to get some pointers. Any scenarios that we should watch out for?


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 Post subject: Re: Rental Property: Prospective Renters
PostPosted: Fri Aug 29, 2014 12:54 am 
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Your problem will be getting rid of them if they don't work out. In many states it can take months to get an eviction order then many more months to actually get them out. And if they do any damage you will be so far back in line you will never collect for it. I personally would not consider renting to them.

You also need to investigate to source of their cash. If they have unpaid bills why is it they can afford to pay up front? Could they be drug dealers and turn your house into a meth lab?

Another concern would be that they are setting YOU up for getting in trouble. In many states it is illegal to collect too much advance rent. So they could pay you, move in, report you, then sue you for triple damages for example if your state allows it.

This just really seems like trouble I'm afraid.


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 Post subject: Re: Rental Property: Prospective Renters
PostPosted: Sun Aug 31, 2014 10:56 am 

Joined: Thu Aug 28, 2014 10:31 am
Posts: 133
Location: Southeast US
There are services that will take the money in escrow for a fee and dole it out to you a month at a time. Then you haven't accepted their money except as necessary, yet they've paid for that year in advance through the escrow service so you can be sure the rent is going to be collected. Then, if you find 2 months in they're selling drugs or destroying the house, you can begin eviction proceedings without technically having accepted a year's worth of rent.

You need to be familiar with the eviction process in your state. Some states, like where I am in the South, basically allows you to give them the boot with a short notice. Other states it requires court action and can take forever. There are online services that will help tailor the specifics to your locale.

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 Post subject: Re: Rental Property: Prospective Renters
PostPosted: Sun Aug 31, 2014 11:04 pm 
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jdmartin wrote:
There are services that will take the money in escrow for a fee and dole it out to you a month at a time. Then you haven't accepted their money except as necessary, yet they've paid for that year in advance through the escrow service so you can be sure the rent is going to be collected. Then, if you find 2 months in they're selling drugs or destroying the house, you can begin eviction proceedings without technically having accepted a year's worth of rent.

You need to be familiar with the eviction process in your state. Some states, like where I am in the South, basically allows you to give them the boot with a short notice. Other states it requires court action and can take forever. There are online services that will help tailor the specifics to your locale.


I did not know this. And an escrow service might address some of the issues here. But you would need to be very familiar with the contract for escrow.


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 Post subject: Re: Rental Property: Prospective Renters
PostPosted: Mon Sep 08, 2014 6:12 am 

Joined: Sun Sep 07, 2014 2:22 pm
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EVERYONE says they are never late on rent. Those people may turn out to be good but I can guarantee that if they have a financial emergency, it will get messy. I would steer clear. Personally, if you are having that much trouble finding tenants, I'd rather lower the rent by $100 to get more applications to be able to find a quality tenant. That would end up being 1200 for a year but a crappy tenant could easily cost you 10s of thousands


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 Post subject: Re: Rental Property: Prospective Renters
PostPosted: Thu Sep 11, 2014 12:36 am 
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Jimmy21 wrote:
EVERYONE says they are never late on rent. Those people may turn out to be good but I can guarantee that if they have a financial emergency, it will get messy. I would steer clear. Personally, if you are having that much trouble finding tenants, I'd rather lower the rent by $100 to get more applications to be able to find a quality tenant. That would end up being 1200 for a year but a crappy tenant could easily cost you 10s of thousands


I totally agree.

There is another school of though that renters looking for cheap rent are more likely to be problems.


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 Post subject: Re: Rental Property: Prospective Renters
PostPosted: Thu Sep 25, 2014 7:24 pm 

Joined: Thu Aug 28, 2014 10:31 am
Posts: 133
Location: Southeast US
DoingHomework wrote:
Jimmy21 wrote:
EVERYONE says they are never late on rent. Those people may turn out to be good but I can guarantee that if they have a financial emergency, it will get messy. I would steer clear. Personally, if you are having that much trouble finding tenants, I'd rather lower the rent by $100 to get more applications to be able to find a quality tenant. That would end up being 1200 for a year but a crappy tenant could easily cost you 10s of thousands


I totally agree.

There is another school of though that renters looking for cheap rent are more likely to be problems.


In business this is almost always the case - those that pay the least for products tend to eat up the most time and attention on dealing with problems, complaints, etc. In my business, I hardly ever hear from the people who have the most expensive accounts and owe the most money, while those who owe little are a large percent of the complains that we deal with.

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 Post subject: Re: Rental Property: Prospective Renters
PostPosted: Fri Sep 26, 2014 9:08 am 

Joined: Sun Jan 06, 2013 10:30 pm
Posts: 151
ScorpioGal wrote:
We have an offer to rent out our property but the prospective tenants have some questionable history. Low credit scores (low 500), unpaid medical bills, a few collection agency accounts, supposedly never late on rent. One of the tenants has a misdemeanor (Resisting Officer Without Violence (Resisting Arrest)), found guilty.


This will convince me enough not to rent to them. Their background is enough said not a good wrap sheet. Also their willingness to pay for 6 - 12 month is questionable, although it sounds good. Seem to me like they can’t find a house to rent because of their past record. I would look for other tenant and I agree with “Jimmy21” might want to lower the rent to attract more tenant.

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