Oh boy, shady tenant???

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Oh boy, shady tenant???

Nadir M.
Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes

Here is the issue, 


Picked a tenant to move in over the weekend. She was very desperate to move in because her previous residence had some sewer issues and had to live with her son in law. Tenant also said she has some relatives coming into town so she wanted to move in soon so it doesn’t get too crowded at her son in laws. Long story short, she moved in. She transferred utilities in her name, she has yet to give me renters insurance even though she said she applied, and She made the deposit and prorated rent payments. So I decided to give her keys. Once she moved in, I’m still attempting to collect renters insurance. All of the sudden, apartments.com (not sure if I recommend this site) said tenant has insufficient funds. I called the tenant and she said she called apartments.com and changed her account to a bank that the site approves. I called apartments.com to verify as the operator said that she did change bank account to an authorized bank accepted by apartments.com. The operator still said that the account still has insufficient funds. Tenant said that she has plenty of money in the account. Also the July 1st payment is still in old unauthorized bank account. So basically this tenant will be late prorated rent, deposit, and first months rent.  She grabbed the keys couple days ago. I wish apartments.com would have said that tenant had insufficient funds from the beginning and not 72 hours later. So what do I do now? Tenant is in process of moving in but is there anyway to reverse the move in process or halt so I can chose a new tenant? The lease has already been signed. Background check is clear for all adults. Credit score for both adults above 685. Where did I go wrong? Did I go wrong? What do I do now? Is this tenant truly trying to do right? 

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Donna M.
Member since 2020 · 81 posts · 73 votes
4y

Could you stop collecting through apartments.com.  Have her give you a check for all money due and for all future rent payments since she says she has plenty of money in the account.

I have found that "rushed" people looking to move in ASAP are problematic.

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  • Donna M.
    Member since 2020 · 81 posts · 73 votes
    4y

    Could you stop collecting through apartments.com.  Have her give you a check for all money due and for all future rent payments since she says she has plenty of money in the account.

    I have found that "rushed" people looking to move in ASAP are problematic.

    24Reply
  • Nathan Grabau
    Realtor · Longmont, CO · Member since 2021 · 577 posts · 631 votes
    4y

    I would ask the tenant for an immediate payment option(cashiers check) instead of waiting for apartments.com to process it. If they are being honest about the money being in the old account then this should not be an issue. 

    My instinct would be that they do not have the money though and you are going to have to ask them to leave or evict them. I would generally recommend having a deposit in some form of good funds. This could be through apartments.com, but you want to make sure the money has hit your account or you have a cashiers check in hand before handing over they keys. 

    4Reply
  • Rhett Wiseman
    Member since 2021 · 4 posts · 15 votes
    4y

    Did you look at W2 income? Speak with prior landlord? Check recent 1099s and tax returns? Check rental history references? 

    When you rent to straight cash tenants, this can happen if you don't vet properly. A background check and a credit score aren't going to give you nearly a full enough picture of a tenants capability of paying rent. I would give her her money back and have her vacate. Chalk it up as a lesson learned and move on. You DONT want this tenant in there for years. 

    10Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    4y

    Always get a cashier's check or money order for ALL the money due in order to sign lease and turnover keys. Never hurry with people who are in a hurry, slow way down. People who tell you stories need to be checked twice. I don't know of a legal avenue open to you at this point. My guess is that you may have an unhappy road ahead of you right now and for the next while. Depending on what state you are in landlords can live in a very unfair world. All the best!

    19Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    4y

    @Bjorn Ahlblad 100% agree here. When someone takes the time to tell you a sad story it's not a great sign. She was rushing the landlord during the screening process, clouding judgment, and maybe something got missed. I'd develop a FIRM but FAIR tone with this tenant about getting accounts setup and payments made. Don't let this go through the holiday.

    5Reply
  • Nadir M.
    OP
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    4y
    Quote from @Rhett Wiseman:

    Did you look at W2 income? Speak with prior landlord? Check recent 1099s and tax returns? Check rental history references? 

    When you rent to straight cash tenants, this can happen if you don't vet properly. A background check and a credit score aren't going to give you nearly a full enough picture of a tenants capability of paying rent. I would give her her money back and have her vacate. Chalk it up as a lesson learned and move on. You DONT want this tenant in there for years. 


     Yes both adults make over 100k. Checked both 2020 and 2021 income. Previous landlord said they were great. No issues. I called the tenant and they stated that she has an appointment with apartments to get this entire thing straightened out. I’m holding on to see. Apparently she made so many payments on apartments that the bank account deemed it fraud and froze her account. 

    1Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    4y

    Crossing my fingers for you @Nadir M. Hope it works out.

    2Reply
  • David P.
    Member since 2020 · 404 posts · 235 votes
    4y

    I don't typically give the keys until their move in date which could be weeks away from when the lease was signed and deposit/rent received. That is a good learning lesson to all to not give keys until all funds cleared. If i were you and the tenant hasn't moved in yet, just go ahead and change your door locks until this thing settles. She is not entitled to the place because she didn't hold up her end of the agreement yet. 

    8Reply
  • Nadir M.
    OP
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    4y
    Quote from @David P.:

    I don't typically give the keys until their move in date which could be weeks away from when the lease was signed and deposit/rent received. That is a good learning lesson to all to not give keys until all funds cleared. If i were you and the tenant hasn't moved in yet, just go ahead and change your door locks until this thing settles. She is not entitled to the place because she didn't hold up her end of the agreement yet. 


     That’s a good suggestion. Lesson learned. Honestly so many lessons were learned on this turnover. Def took some notes. Part of me still trusts that she means well. 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Start the eviction. She will either straighten out her mess and get you paid, disappear, or gets kicked out.

    in the future, deposit and first month of rent should be paid by money order or cashier's check. If you accept any other form of payment, it has to clear before you hand over keys 
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    8Reply
  • Nadir M.
    OP
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    4y
    Quote from @Nathan Gesner:
    Start the eviction. She will either straighten out her mess and get you paid, disappear, or gets kicked out.

    in the future, deposit and first month of rent should be paid by money order or cashier's check. If you accept any other form of payment, it has to clear before you hand over keys 

     I’m hoping she straightens out her mess. Yes for sure, next time amount has to post. No exceptions 

    2Reply
  • Nadir M.
    OP
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    4y
    Quote from @Nathan Gesner:
    Start the eviction. She will either straighten out her mess and get you paid, disappear, or gets kicked out.

    in the future, deposit and first month of rent should be paid by money order or cashier's check. If you accept any other form of payment, it has to clear before you hand over keys 

     How would you start evicting someone who is in the process of moving in? 

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

    @Nadir M.  Give her your states official pay or quit notice and tell her you need a cashiers check for the money.   Making that much money it shouldn't be a problem to make it good now and figure it out with apartments.com later.  Usually a pay or quit is the first step in the eviction process. 

    0Reply
  • Nadir M.
    OP
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    4y
    Quote from @Colleen F.:

    @Nadir M.  Give her your states official pay or quit notice and tell her you need a cashiers check for the money.   Making that much money it shouldn't be a problem to make it good now and figure it out with apartments.com later.  Usually a pay or quit is the first step in the eviction process. 

    Can that be emailed to her? I live out of state. 
    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    4y

    @Nadir M.  It is state specific how and what you must do, so check your local laws. Sometimes I have sent unofficially by email and followup  the official way, in my state it is by certified mail or posting. You are looking to do one of two things if this is a valid issue with apartments.com light a fire under her to resolve it now and pay or if she really won't pay start the eviction process.  She needs to know you are serious and professional.  Follow through whatever you do.

    3Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Tell her you want a certified check or money order and you will get it in person.  Give her 48 hours to hand it over or start the eviction.

    1Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    4y

    You should have seen her bank statement, ID, called the employer's number listed in their  website, seen old apartment to check out the story. I would not let her move in if the lease starts on the 1st. I would go there in person. She has no confirmed contract. As @Colleen F.said I would email her the notice to pay or quit, go to post office and send certified at 7:30 AM, call her and say you need the money in full plus a penalty into your venmo, or ACH, or zelle by 9:00 AM no excuses no messing with apartments.com When or if she gets apartments.com straightened out that can be August 1 payment and refund NOTHING, you need more security. My guess is you may need to evict her according to the subject location laws. A cheap last minute flight on a discount airline might mean you can discover the truth right away and get her out or get paid.

    1Reply
  • Nadir M.
    OP
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    4y
    Quote from @Caroline Gerardo:

    You should have seen her bank statement, ID, called the employer's number listed in their  website, seen old apartment to check out the story. I would not let her move in if the lease starts on the 1st. I would go there in person. She has no confirmed contract. As @Colleen F.said I would email her the notice to pay or quit, go to post office and send certified at 7:30 AM, call her and say you need the money in full plus a penalty into your venmo, or ACH, or zelle by 9:00 AM no excuses no messing with apartments.com When or if she gets apartments.com straightened out that can be August 1 payment and refund NOTHING, you need more security. My guess is you may need to evict her according to the subject location laws. A cheap last minute flight on a discount airline might mean you can discover the truth right away and get her out or get paid.


     I’m heading over there this weekend. I spent 40 minutes on phone trying to get her to forward renters insurnace information. She’s on the older side 

    0Reply
  • Isaac S.
    Member since 2018 · 563 posts · 562 votes
    4y

    @Nadir M.

    I want you to burn this saying into you brain!!!

    "your poor planning is NOT my emergency"

    Every time I have rented to a deadbeat, one of the red flags was some emergency urgent reason to move in before the my conditions were met. 

    7Reply
  • Nadir M.
    OP
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    4y
    Quote from @Isaac S.:

    @Nadir M.

    I want you to burn this saying into you brain!!!

    "your poor planning is NOT my emergency"

    Every time I have rented to a deadbeat, one of the red flags was some emergency urgent reason to move in before the my conditions were met. 


    It’s the lack of communication. I feel as if I’m babysitting. If I’m not on the phone getting what I need then things go into limbo.  

    0Reply
  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    4y
    Quote from @Donna M.:

    Could you stop collecting through apartments.com.  Have her give you a check for all money due and for all future rent payments since she says she has plenty of money in the account.

    I have found that "rushed" people looking to move in ASAP are problematic.


     I agree with this. I do not let people rush me as at the very least they will probably be a little more higher maintenance tenant and at the worst they are running from something (eviciton, bad relationships, money problems, etc). 

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    2Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    4y

    @Nadir M. so you are going to have to find out if this is technical incompetence on her part or a dodge but follow the process to get her out so you don't lose time if it is a dodge.  I did have one tenant who had to have her teenage son pay the rent because she couldn't figure out how, she was challenged.  I also had a few I had to sit down with to sign them up to autopay.

    Banks close at noon on the weekend so you would need to wait to monday to get a cashiers check if she doesn't have it when you get there. I would advise her to have a cashiers check ready for you when you arrive and make sure she understands what that is.  Good luck.

    Also one tip is sometimes you can just get them to send a photo of the info you need for the insurance even if they take a picture of a computer screen because they don't know how to do a screenshot.  

    2Reply
  • Tony Lee
    New to Real Estate · Allentown, PA · Member since 2019 · 62 posts · 19 votes
    4y
    Quote from @Nadir M.:
    Quote from @David P.:

    I don't typically give the keys until their move in date which could be weeks away from when the lease was signed and deposit/rent received. That is a good learning lesson to all to not give keys until all funds cleared. If i were you and the tenant hasn't moved in yet, just go ahead and change your door locks until this thing settles. She is not entitled to the place because she didn't hold up her end of the agreement yet. 


     That’s a good suggestion. Lesson learned. Honestly so many lessons were learned on this turnover. Def took some notes. Part of me still trusts that she means well. 


     You're letting your emotion interfere your judgement. Change the lock asap! Do not let her in, when she contact you make sure she has a cashier check in hands. Then find a Property Manager to deal with her for 1 year. 

    I made the exactly mistake back in 2018. Best of luck!

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

    @Nadir M. NEVER NEVER NEVER USE A THIRD PART SERVICER TO COLLECT SECURITY DEPOSIT AND 1ST MONTHS RENT BEFORE MOVE IN.I always use Cashiers check or money order for the security deposit,pet deposit and 1st months rent NO EXCUSE,Period.If tenant cannot do that well i am moving away.Until the security deposit clears in my bank account i donot hand over the keys how frustrated the tenant is.Another key thing ,the more pushy the tenant is in getting the place the more shady the tenant is and i will always double think @ that point.

    5Reply
  • Jeyo PunnakottilPro Member
    Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    4y

    @Nadir M. Ask her to give you a Cashiers check for all pre move in money( security deposit,Pet fee,1st month rent etc) .If she is legit she will get a cashiers check to you.Otherwise she will find excuses and say she needs to sort it with apartments.com

    If she already moved in and signed the lease ,depending on the state your only option is eviction.

    1Reply
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