Rental Property Investor · Phoenix · Member since 2018 · 29 posts · 12 votes
Curious for thoughts on what went wrong...thank you for your insights! My tenant stopped paying rent and had to be evicted. While I'm thrilled this person is out, I'm out 3 months rent, plus legal fees and now about $2k in damages. Broken window, stained carpet, significant cleaning of things like maggot infested garage, rotting food in warm fridge, urine in corners of carpet. I use a property manager. In reviewing the tenant online on my own, I found a criminal record on this person, with mug shot (so no denying this is the person), with 'claims substantiated'. Wouldn't this type of thing be caught in a background check? Anyone willing to share the tenant screening process you use? (this is in Arizona - Phoenix) Thanks again.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
4y
And this is why I self-manage. It takes little time and I don't have to rely on someone who isn't nearly as invested in my property as I am.
Ask your PM for a copy of the credit/criminal check they had on this tenant. How old was the charge/mugshot? I know some states expunge from the docket after X-amount of years, even for serious crimes.
I check the docket online even before I have my local apartment association do a search. They do additional searches (Megan's Law database, the other 49 states, etc.).
Sue the tenant and get a judgement against him. Then when he likely doesn't pay you, go to the prothonotary's office and get a lien against him and renew it every X-amount of years - varies by city. If he ever inherits anything, someday sells a house or gets a lawsuit windfall you'll be paid.
Rental Property Investor · Phoenix · Member since 2018 · 29 posts · 12 votes
4y
Thanks so much everyone for your thoughts! I agree, I could have done better in not being so naive to the process - I could have asked better questions and did that internet search way back then. I'm putting my list together for a better screening process now. Truly thankful for all of your ideas! Happy Thanksgiving!
Property Manager · Ridley, PA · Member since 2017 · 427 posts · 449 votes
4y
@Elizabeth Schartman As a real estate investor, I believe the most important part of the buy and hold process is vetting prospective tenants. A great tenant is worth his/her weight in gold. A bad tenant could end up costing you thousands of dollars in rents, property damage and valuable time. I check all local civil courts for any previous evictions, foreclosures etc. I perform a criminal background. I check social media profiles. I request references especially from previous landlords. Proof of income as well. I would prefer having a vacancy then renting to a nightmare tenant.
Rental Property Investor · Phoenix · Member since 2018 · 29 posts · 12 votes
4y
Thanks @Joseph ODonovan, I like your approach. How do you quantify a negative social media profile? So you see something negative, but you can't really use that to exclude the potential tenant, right?
Rental Property Investor · Sacramento, CA · Member since 2017 · 202 posts · 82 votes
4y
Your property manager should have done a better job of vetting the tenant before allowing them to move in. You can not deny anyone with a criminal background (Check your states landlord tenant laws) but you should shoot for a class A tenant. Yes it would be caught in a background check, a lot of websites offer background checks for landlords and it should also be apart of the application fee. You would charge the perspective tenant $50 or more and this fee would be used to run a background check before you sign a lease.
Real Estate Agent · Wilmington, NC · Member since 2017 · 59 posts · 16 votes
4y
Sorry to hear but what happened but with that being said experience is the best teacher and sounds like you learned a lot here! Best of luck to you in the future
How do you quantify a negative social media profile? So you see something negative, but you can't really use that to exclude the potential tenant, right?
You haven't got this yet. You can decide not to rent to anyone for any reason! It is your house...You just have to be careful on how you word it......or don't give them a reason at all. A few years ago when renting a small house, I looked up every applicant on Facebook. Any disturbing comments, excessive tattoos, too young, etc, meant they weren't in the mix. Never told anyone anything. If they asked, it was already rented, or I was still taking applications.......
This is your property. You paid $$ for it, you have all the risk. Wait until you find the 'perfect' tenant. Note the quotes.