Tenant Screening Guidance and Move in Date Complications
Hello BiggerPockets!
I've acquired my first rental which I believe will cash flow well due to interest only financing. It is actually my primary residence as of now but we are moving in November to a new build. We have begun the process of advertising the property despite it not being available until November. With that said I have some questions:
1. I was reading on the forums to collect the security deposit in order to hold the property until a lease is signed. Is that still a good method giving the extended time? If not are there other methods that would work?
2. Because we are moving to a new build we are not able to commit to a set day for a tenant to move into the rental. The build completion date is tentatively set for Oct 27 but we all know how that goes. I can almost guarantee us being in the new home by mid-November at the latest. How do we word this in the contract or do we wait until we know the date to actually complete the lease? If we did wait should that be noted when taking the security deposit from the previous question? If so should we commit to providing a certain time period they would take possession when we take deposit?
3. Credit History - We do have a couple that are applying as of now. I've been told the female's credit is excellent (750+), but the male has a a short sale within the past 7 years and a bankruptcy 10 years ago. They have stated the only item on his credit report now is a car payment and they make 70K each for a total of 150K a year. The property is being advertised at $2200 a month so they are well over the income requirements. I am still waiting for the report to come in from SmartMove and I will confirm income. I will also speak with past landlords. If their statements are true what are the community's thoughts them becoming tenants?
Thank you all for taking the time to read this and for any additional time spent in response. I really appreciate it.
Lance