So confused on how to proceed on this tenants

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So confused on how to proceed on this tenants

Jeyo PunnakottilPro Member
Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes

So confused on how to proceed .Here is a nutshell.I have a ppty ready for rent.Been on market for 20+ days .Getting tons of showing request but most if not all donot pass my initial screening terms which are

1. Credit 680+

2. Income 3x rent

3. No evictions

4 .No aggressive breed pets

Finally a couple passed the screening .They came saw the house n fell in love.But once applications came in red flags started popping up

One candidate is perfect but other is not .Here are there screening results

1st candidate

790+ credit

Makes 4x rent

Been on current job for 18 yrs

No pets

No evictions

Credit report has nothing serious

2nd candidate

620 credit

Makes 1.8X rent

No pets

Couple of late payments on credit report and those are in past 3 yrs

Been on current job for 3 yrs

4 collections on credit report

No evictions.

Interesting things to note about applicant 1&2

Both are not married in sense they claim single status on application

Both work at same place under one boss .

Both are living in separate apartments .Coming to live together under 1 roof in my rental.

The 2nd candidates current landlord (apartment)says she owes 800$ in cleaning fee as she left 7 bags of trash and dirty carpets and messed up cabinets, she paid rent on time but didnot put a security deposit so they cannot collect the cleaning fee.

Will you rent to these applicants .If so what precautions you will take? especially when drafting lease and taking security deposit.

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Joan MacDonald
Member since 2019 · 15 posts · 15 votes
4y

Make sure the lease says that all signors are "jointly and severally liable" for the terms of the lease. If either one leaves the other with monies owed to the landlord, you can sue each of them with legal good standing without concern for whatever agreement they had between them.

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  • Adri JusczakPro Member
    Salinas, CA · Member since 2020 · 51 posts · 34 votes
    4y

    The first couple seems like they are the best option. I would add into the lease with something along the lines of if they split up, rent is still due. That might be a conversation to have with them, they both will stay on the lease if they break up and if only one stays in the property, the eviction process will fall on both of them if they fall behind on rent. I wouldn't rent to someone that left their previous place in bad condition- they'll do the same to yours. 

    1Reply
  • Jeyo PunnakottilPro Member
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    4y

    @Adri Jusczak My thought was to have the lease drafted in the 1st applicants name only with the 2nd applicant as an occupant in the property so even if they split the lease is with 1st applicant and he will have to pay rent no matter what.What are your thoughts on that?

    2Reply
  • Forrest Williams
    Real Estate Agent · Chicagoland · Member since 2018 · 314 posts · 199 votes
    4y

    Underqualified or beginning applicants will often use a relative to help secure their application, improving credit score and income. If they don't pay the rent, it's on the co-signer to do it. Couple 1 fit this description perfectly. 1st candidate meets all the qualifications by themselves, so you should be fine.

    4Reply
  • Adri JusczakPro Member
    Salinas, CA · Member since 2020 · 51 posts · 34 votes
    4y
    Quote from @Jeyo Punnakottil:

    @Adri Jusczak My thought was to have the lease drafted in the 1st applicants name only with the 2nd applicant as an occupant in the property so even if they split the lease is with 1st applicant and he will have to pay rent no matter what.What are your thoughts on that?

    That sounds like a great plan! If they tenants are fine with that, I would go that route. 
    0Reply
  • Jeyo PunnakottilPro Member
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    4y

    @Adri Jusczak i think i am getting everone confused.. there is only one couple we are talking about

    1applicant is a male

    2nd one is a female.

    Both came in a car to see the property so i assumed they were a couple but they are not,as their application says they are single. They are applying together but only the male qualifies and female donot. Both are currently living in 2 different apartments and want to live together in my rental.They both work at a same location. I donot know what relationship they have but that is non of my business. My concern is the female character .

    0Reply
  • Brendon Pishny
    Investor · Olathe, KS · Member since 2017 · 123 posts · 99 votes
    4y

    @Jeyo Punnakottil

    I would rent to them. Maybe ask for a little higher deposit and proof that they paid the cleaning fee for the other landlord. Overall, between the two of them it’s a good bet. Those aren’t huge red flags In my opinion. Don’t let houses sit too long. Put them to work. Hope that helps.

    1Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    4y

    @Jeyo Punnakottil I would be concerned about the cleaning issues. Did she clean and bag the 6 bags or leave the cleaning and bagging to the landlord? If she is a slob and he moves out then you are stuck with a slob with too low of income. I don't expect clean freaks but someone who leaves behind 6 bags of garbage is a big risk imo. How difficult is it in your area to evict, in the event the partner moves out? You could lose as much money trying to get rid of her as waiting for someone better.

    2Reply
  • Adri JusczakPro Member
    Salinas, CA · Member since 2020 · 51 posts · 34 votes
    4y
    Quote from @Jeyo Punnakottil:

    @Adri Jusczak i think i am getting everone confused.. there is only one couple we are talking about

    1applicant is a male

    2nd one is a female.

    Both came in a car to see the property so i assumed they were a couple but they are not,as their application says they are single. They are applying together but only the male qualifies and female donot. Both are currently living in 2 different apartments and want to live together in my rental.They both work at a same location. I donot know what relationship they have but that is non of my business. My concern is the female character .

    The female potential tenant is the one with the bad rap from her previous landlord? If that’s the case, I would not let her live there. Even if you did a larger damage deposit, I’d still have a hard time sleeping at night because I would constantly be questioning what she’s destroying in my house! 
    0Reply
  • Cameron Phillips
    Rental Property Investor · New Braunfels, TX · Member since 2017 · 10 posts · 2 votes
    4y

    @Jeyo Punnakottil personally I would rent to them. Just make sure you get your deposit.

    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    4y

    @Jeyo Punnakottil bad landlord reference like this would be a no for me although I know one landlord who used to take tenants like this if they paid off the last landlord judgement. (  I would get more info on what went on. If it is on credit report it went pretty far.  You also say a couple of judgements medical or other bill?  The real issue is if they break up or decide not to live together the one who doesn't pay, doesn't clean and gets judgements against them stays. 

    That said I don't know what quality of rental you have here and what previous applicants have looked like.

    Another thought is to bring to light of day her poor standing if you are going to let applicant 1 sign because if they are going to be responsible for the unit and you have no gaurantee that the roommate has made clear what their record is

    0Reply
  • Cameron Phillips
    Rental Property Investor · New Braunfels, TX · Member since 2017 · 10 posts · 2 votes
    4y

    @Jeyo Punnakottil in my opinion dirty carpets are a little expected and bags of trash aren't a huge deal. She paid rent on time and 1st candidate is more than qualified it's a risk I'd be willing to take.

    1Reply
  • Jeyo PunnakottilPro Member
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    4y

    @Marian Smith All the apartment said was she left behind 7 bags of trash and the carpets are messed up and she never reported a leak under the cabinet sink which the apartment claims is worth 850$ work of work and she never paid it as she didnot put down a security deposit .

    I did talk to the tenants and he agreed to my suggestion of a larger security deposit and having the lease only in his name so he will be responsible for paying the rent and keeping her as the additional occupant in the lease.

    0Reply
  • Jeyo PunnakottilPro Member
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    4y

    @Cameron Phillips Thanks .Some humanity left behind in me says i should give the guy a chance after talking to him.He is too perfect for her in the sense he pays all his bills on time.Been working at the same job for last 27 yrs.Been living tenant life in apartment. All good references for him.She on the other had went through a bad divorce and met him.I addressed all the issues i noticed on her records and he knows about the 4 collections and the apartment issue and he is asking her to pay the apartment cleaning charge of 850$, and that he is tough with her on rebuilding her credit .

    0Reply
  • Jeyo PunnakottilPro Member
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    4y

    @Marian Smith carification

    The 850$ is the total of cleaning fees and carpet change and the leak under sink

    0Reply
  • Christopher Bell
    Member since 2019 · 32 posts · 12 votes
    4y

    @Jeyo Punnakottil you can do what I did similar situation. Demand a 2x security deposit. Ended up being a saver where even though the bad one trashed my property I was able to stay profitable. But > 600 credit score isn’t terrible.

    0Reply
  • Joan MacDonald
    Member since 2019 · 15 posts · 15 votes
    4y

    Make sure the lease says that all signors are "jointly and severally liable" for the terms of the lease. If either one leaves the other with monies owed to the landlord, you can sue each of them with legal good standing without concern for whatever agreement they had between them.

    5Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    4y

    With our rentals, based on experience, we require all applicants to qualify for the property. Only exception would be family (ie, a married couple). I think that if you accept this couple you can expect one of them to eventually leave. If it's the guy that leaves, you're going to wind up with a person that isn't going to take care of the property based on past history and probably won't be able to pay rent. If the woman leaves, you'll be better off. Most of the unmarried couples we have rented to in the past have not stayed together in the property. So our policy is that they both need to qualify and in your case, they don't. So personally I wouldn't offer a lease to them. Your choice of course...

    2Reply
  • Adeva Edobor
    Banker · Huntington Beach, CA · Member since 2018 · 99 posts · 100 votes
    4y

    From my experience, (may not apply in this case) tenant 1 is only helping tenant 2 qualify for the rent. They don't plan on living together. They are coworkers and one is helping the other because she can't qualify by herself. If the laws in your state allow you go after tenant 1 easily in case of a problem down the line, then sure. Just let them know that upfront. If I were in your position, I'll hold out for a more qualified applicant.

    0Reply
  • Hollis Cook
    Investor · Vero Beach, FL · Member since 2016 · 14 posts · 7 votes
    4y

    Interesting... personally I don't care for "coming together" tenants. #2 seems like the "he" and that he may be prone to leaching of the more responsible #1, which seems like the "she". My caution would be that people rarely change, the honeymoon may end and she, having the better stats, may be the one to bail, leaving you stuck with the lesser of the two candidates.

    Purely anecdotal-opinion, of course, and possibly it comes to mind because it just happened to my landlord-neighbor. 

    My best tenants have always been older singles or older married couples that have been "together forever". What I would do is to broaden your search, try word of mouth, possibly church bulletins, etc., a "Unity" church is a good resource. Also try nosing around your local Town offices, Veteran's groups, and don't forget the Sheriff's Dept or local PD. And if you have pets, another quirky but great resource can be your veterinarian. They know a ton of people and often have a pretty good bead on who is reliable, especially with your allowing non-aggressive dogs. (I have a 12-year tenant I found at my vet, btw ;)

    Best of luck!

    0Reply
  • Curtis Mears
    Property Manager · Raleigh, NC · Member since 2014 · 729 posts · 596 votes
    4y

    @Jeyo Punnakottil

    Based on what I see, I would lease to the couple as the 1st applicant can afford the property on their own. I may require a double security deposit as applicant #2 left trash at previous property.

    1Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    4y
    Quote from @Jeyo Punnakottil:

    Both are living in separate apartments .Coming to live together under 1 roof in my rental.

    In English, this used to be referred to derogatorily as "shacking up." I'm still a big fan of the phrase. There's good research that indicates that shacking up as a prelude to marriage doesn't always lead to good outcomes.

    You've got to ask someone local with a law license and experience in real estate law for a good answer on how to write a lease for this one, Jeyo. Otherwise you're just spinning your wheels, hoping to get lucky.

    1Reply
  • Nancy P.
    Naperville, IL · Member since 2018 · 330 posts · 357 votes
    4y

    I've had several tenants like this.  The lease states that it is JOINT AND SEVERAL, so both are responsible for all of the rent.  It's not uncommon for people just moving in together to break up. IF that happens, don't let #1 leave, make  #2 leave or make them both leave.  (I made that mistake and am about to serve notice on the guy who stayed behind.)  Also, don't assume they aren't a couple just because they are LEGALLY single.  That's most people anymore.  But guy #1 is in good shape, so I'd take them, with a double security deposit.  I have no sympathy for her previous landlord who didn't get one.  None.

    0Reply
  • Chad McMahan
    Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 754 posts · 504 votes
    4y
    Quote from @Jeyo Punnakottil:

    So confused on how to proceed .Here is a nutshell.I have a ppty ready for rent.Been on market for 20+ days .Getting tons of showing request but most if not all donot pass my initial screening terms which are

    1. Credit 680+

    2. Income 3x rent

    3. No evictions

    4 .No aggressive breed pets

    Finally a couple passed the screening .They came saw the house n fell in love.But once applications came in red flags started popping up

    One candidate is perfect but other is not .Here are there screening results

    1st candidate

    790+ credit

    Makes 4x rent

    Been on current job for 18 yrs

    No pets

    No evictions

    Credit report has nothing serious

    2nd candidate

    620 credit

    Makes 1.8X rent

    No pets

    Couple of late payments on credit report and those are in past 3 yrs

    Been on current job for 3 yrs

    4 collections on credit report

    No evictions.

    Interesting things to note about applicant 1&2

    Both are not married in sense they claim single status on application

    Both work at same place under one boss .

    Both are living in separate apartments .Coming to live together under 1 roof in my rental.

    The 2nd candidates current landlord (apartment)says she owes 800$ in cleaning fee as she left 7 bags of trash and dirty carpets and messed up cabinets, she paid rent on time but didnot put a security deposit so they cannot collect the cleaning fee.

    Will you rent to these applicants .If so what precautions you will take? especially when drafting lease and taking security deposit.

    Hi Jeyo.
    I would have a conversation with them and express concern about the 2nd candidate. If it is really that hard to find a decent tenant, I would express a no tolerance policy on late payments- they will always have a late payment penalty.  I would also require as high a deposit as you can legally take, and get timestamped pictures and notes of everything before they move in, and keep the pictures safe.
    0Reply
  • Jeyo PunnakottilPro Member
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    4y

    @Joan MacDonald what if i draft the lease only for tenant 1 and she is just an occupant @ the property.

    If they decide to breakup and he decides to leave then she cannot remain or property because there is no lease between me and her and he is obligated to terminate the lease or he will have to stay @ the property because the lease is between me and him.

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    4y
    Quote from @Jeyo Punnakottil:

    @Joan MacDonald what if i draft the lease only for tenant 1 and she is just an occupant @ the property.

    If they decide to breakup and he decides to leave then she cannot remain or property because there is no lease between me and her and he is obligated to terminate the lease or he will have to stay @ the property because the lease is between me and him.


     Doesn't work that way, if she's living in the property, she's a tenant whether she's on the lease or not. If she won't move out you would still have to evict her. Are these people the only candidates you have? Why are you trying to squeeze into this glass slipper? Move on and find someone less likely to give issues.

    2Reply
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