don't know how to choose a tenant

[Philip_G]

I've been renting out a couple of my old houses for a few years now, can't sell them anyway so why not instead of take the loss. Anyway with the economy in the crapper the rental market is unbelievable right now, I have one set of tenants (GREAT people) leaving, so I ran an ad yesterday. I was immediately swamped with emails and showed it to 4 families, 3 of the 4 wanted it on the spot but as they were all scheduled I thought it fair to let them all have a chance at it and choose the one I liked best, usually this is pretty easy.

well without giving away anyone's business and having not run backgrounds yet, going on what they told me it's no surprise the economy has hit them all and that doesn't surprise me, that's why they're renting and I expect that, so things like credit scores don't really hold much water with me, but they've all got similar situations with some sort of distress, I'm on the pretty low end for what you can get a house for, and they all seem responsible, they're all homeowners now or in the past, and they're all pretty desperate for the house. My problem is I don't know which one to choose, I really like 2 of them and think they'd both be great tenants and don't want to tell either no. I know the one has been passed over a few times already and I feel really bad, the other is pretty much a carbon copy of my tenant in another property, and she's been incredible for almost 5 years. We've gone over pros and cons and really they're a wash, but I lean one way because they don't have pets and there's fewer people going to be living in my house, less wear and tear. Then I lean the other way because they're a bigger family, and while the house is small for them it's bigger than where they are now and they could use the space more.

Anyway, just whining because I'm bummed out I have to ruin somebody's day here in a few hours, just don't know who yet.

 

[joewithaboat]

Re: don't know how to choose a tenant

Id go for the one with no pets...

 

[r.j.dawg]

Re: don't know how to choose a tenant

Id go for the one with no pets...

+1.

 

[Philip_G]

Re: don't know how to choose a tenant

Id go for the one with no pets...

Yeah, they want a little longer lease too, but other folks would sign the same lease length but they prefer a shorter one.

 

[Fishing Dude too]

Re: don't know how to choose a tenant

Look how their dressed, over dressed, shoes match clothes? Car match how their dressed? Look inside car if full of trash?

 

[Philip_G]

Re: don't know how to choose a tenant

Look how their dressed, over dressed, shoes match clothes? Car match how their dressed? Look inside car if full of trash?

pretty equal. since most communication is handled through email I pay close attention to their spelling and grammar too, lol. One person wrote me and couldn't even spell the name of the nearest cross street they lived on now, I mean a major street. no thanks.

 

[coastalrichard]

Re: don't know how to choose a tenant

Philip, when I consider different investment options (which is precisely what you're doing) I look at the costs of getting into and out of the position. I also try to frame my best and worst case scenarios and look at the ability of the counterparty to perform its obligations.

Many folks in today's rental market are former homeowners. If they became renters because of a foreclosure it is entirely possible for them to have a deficiency judgement against them as a result.

Your best case scenario would be a tenant that pays as agreed, cares for your property and returns it to you in good shape. Your worst case will be one that won't/can't pay, you have to evict and you get stiffed on the rent. You certainly can sue to get a judgement for your loss, but if that tenant already has a large judgement against them, you won't get your money until the prior judgement holder gets theirs.

Go to your local clerk of circuit court and do a judgement search on the prospective tenants (most have websites - you can do it from your chair). This will help you determine your ultimate counterparty risk.

 

[aspeck]

Re: don't know how to choose a tenant

All I will say is the last person I rented to I did it because I felt bad for them and their situation. It turned around and bit me ... The end of last week I finally had them removed from the premise. Charges have been filed against them for stealing a dresser, a washer, and a dryer, and I meet with an attorney on Wednesday to file a civil suit against them for the the money they owe, plus the court expenses, plus the damage they did to the rental (refrigerator ruined by leaving it full of food and turning it off ... gaskets stuck and "welded" door shut, inside of fridge too disgusting to ever put food into again, windows broken, blinds destroyed, a door broken, carpet removed, storm windows broken, window screens broken, leak in sink that was never reported and cabinet rotted out, doors broken in all of kitchen cabinets and drawers, couch shredded by 2 kittens when no pets were allowed, and the list goes on).

First time I have ever gone through this and I have been renting for 20 years. DON'T rent with your heart. Rent with your head. No pets, fewer people, ability to pay rent, seem trustworthy and clean, sounds good.

 

[Philip_G]

Re: don't know how to choose a tenant

All I will say is the last person I rented to I did it because I felt bad for them and their situation. It turned around and bit me ... The end of last week I finally had them removed from the premise. Charges have been filed against them for stealing a dresser, a washer, and a dryer, and I meet with an attorney on Wednesday to file a civil suit against them for the the money they owe, plus the court expenses, plus the damage they did to the rental (refrigerator ruined by leaving it full of food and turning it off ... gaskets stuck and "welded" door shut, inside of fridge too disgusting to ever put food into again, windows broken, blinds destroyed, a door broken, carpet removed, storm windows broken, window screens broken, leak in sink that was never reported and cabinet rotted out, doors broken in all of kitchen cabinets and drawers, couch shredded by 2 kittens when no pets were allowed, and the list goes on).

First time I have ever gone through this and I have been renting for 20 years. DON'T rent with your heart. Rent with your head. No pets, fewer people, ability to pay rent, seem trustworthy and clean, sounds good.

surprisingly his/her report came back clean. the cost might be a little high but their history is clean back into the 90's other than a short sale. Guess we go with that one. Really it's always a crapshoot anyway.

 

[WIMUSKY]

Re: don't know how to choose a tenant

If I were a landlord, the first group of people I would look at would be retirees. They are older and should be wiser and should respect other peoples property more so than the youngin's........ Not in every case, of course, but I would think more often than not.....

 

[aspeck]

Re: don't know how to choose a tenant

If I were a landlord, the first group of people I would look at would be retirees. They are older and should be wiser and should respect other peoples property more so than the youngin's........ Not in every case, of course, but I would think more often than not.....

Yep!

 

[kenmyfam]

Re: don't know how to choose a tenant

Yes it's a crap shoot choosing tenants. We were landlords for a number of years and have evicted some that appeared and showed to be "good risk" tenants. The damage etc is hard to take as well. Won't go into all the details but aspeck I hear you !!!:facepalm:
Sold the last one in 2006 and although the investment in the property has gone the assets from it have done OK since.
I certainly don't miss it !!!!

 

[coastalrichard]

Re: don't know how to choose a tenant

If I were a landlord, the first group of people I would look at would be retirees. They are older and should be wiser and should respect other peoples property more so than the youngin's........ Not in every case, of course, but I would think more often than not.....

Unfortunately, that is discriminitory profiling and quite illegal...thanks DHUD:redface:

 

[Captain Shikaboo]

Re: don't know how to choose a tenant

My best tennants ended up being drug dealers. The management company that took care of my rentals called me one afternoon and asked if I could evict them. What do you say? It was a very thin iced situation. I thought for sure I was gonna get into some sort of legal battle, be held accountable for thier actions, get hit with equal housing mumbo jumbo, or maybe even shot. I had to get proof and have a detective check it out. The detective had some great advise. He told me to tell the tennants that the local police contacted me and were watching the house for drug activity. He said I should make it look like I was protecting them from the po po, and that they should move out or stop dealing drugs from the house. They moved out and wrote me an appology letter for having to go in such short notice. The house was immacualte, besides the dark purple paint in the bedrooms... They always paid in cash and ontime, I didn't think they wanted any attention what so ever.


Good luck finding a tennant! It is a crap shoot for sure.

 

[jasoutside]

Re: don't know how to choose a tenant

I've been renting out a couple of my old houses for a few years now, can't sell them anyway so why not instead of take the loss.

I guess I have a quick question...

Can your homes be licensed as rentals?

 

[soggy_feet]

Re: don't know how to choose a tenant

pretty equal. since most communication is handled through email I pay close attention to their spelling and grammar too, lol. One person wrote me and couldn't even spell the name of the nearest cross street they lived on now, I mean a major street. no thanks.

I used to manage a piece of property for my father. My favorite phone message for an available apartment gave me a number to call and leave a message with so and so's sister, because this want-to-be renter had no phone of their own. I "accidentally" erased that from my voicemail when I MEANT to save it....

These rentals were in a small town. I was charging $450/month for a large 2 bedroom apartment, and it was still trouble collecting rent sometimes. In my case, any time someone moved out, I reposted the ad for $50 more than the previous time (That $450 was up from $375 when I took over). Figured I'd hit a sweetspot eventually, too expensive for the deadbeats to consider, but not too expensive for the average joe with a decent job to afford.

In the end, before I moved out of state, I had a lot less headaches to deal with, and a lot more money in the bank.

 

[minuteman62-64]

Re: don't know how to choose a tenant

Just last year I ended 30+ years as a landlord (never been in prison, but that must be how parole feels ). All above good advice. Two things I'd emphasize (based on experience). First, as someone else suggested, check the court with jurisdiction in the candidate's area of current/last residence and look for evictions/unlawfull detainer actions or what ever they are called in your area. Second, set your rent towards the upper end of the range appropriate for the facilities you are offering - you get a much better prospective tennant selection that way.

 

[rivermouse]

Re: don't know how to choose a tenant

Why not make them put up a large security deposit. Then tell them for every day they are late with your rent 25 dollars will be subtracted from it. When they are a total of 10 days late they forfiet the entire thing and must move . Require all mailed payments to be certified . That will keep them on the ball with your rent I bet.

 

[kenmyfam]

Re: don't know how to choose a tenant

Why not make them put up a large security deposit. Then tell them for every day they are late with your rent 25 dollars will be subtracted from it. When they are a total of 10 days late they forfiet the entire thing and must move . Require all mailed payments to be certified . That will keep them on the ball with your rent I bet.

May work where you are but you can not do that here. I wish though !!!

 

[Summer Fun]

Re: don't know how to choose a tenant

When I had my rentals, I would rent day to day in the contract.

I could kick you out with no legal fuss in 1 day. There was no 30 day notice needed.

I also used a realtor to weed out all the riffraff.