I stopped reading at "tenant was evicted in 2018" - there a number of (poor) decisions that a tenant has to make in order to actually be evicted. The fact that they did not take advantage of the numerous safety nets / assistance programs available, or failed to make not very desirable but necessary changes to their lifestyle in order to avoid receiving a service (housing) without paying for it. This tells me all I need to know about their character. Sure there are exceptions, but the exceptions prove the rule. I'll let someone else "take a chance" on them. Life is too short. Hard pass.
@Bruce Woodruff I do see rent advance as a good thing in the posed scenario as it mitigates the risk. In MD, the realtor organization took the trouble to obtain a counsel's opinion on this very issue and has advisory language that should be incorporated in the lease to be on the right side of the law. While counsel's opinion is just an opinion, it is issued by a highly specialized firm and I do put some currency in their opinion.
There is a time value of money as well, especially if I am able to use the money from day 1.
She mine as well do the 1st time homebuyers program and get a house. And use the 1 years rent as her down payment. https://preapproval.kellermortgage.com/#/disclaimer?KWUID=855101&campaign_id=15&partnerid=102100
Everyone does not aspire to be a homeowner. People might have a short term horizon and mortgage could be a real drag and not everyone wants to be an accidental landlord. I rented for many years while owning rentals myself.
She mine as well do the 1st time homebuyers program and get a house. And use the 1 years rent as her down payment. https://preapproval.kellermortgage.com/#/disclaimer?KWUID=855101&campaign_id=15&partnerid=102100
I agree with @Kevin Baker, verify the numbers and make sure the reference list checks out. This person making too much each month to get themselves into this sticky situation only three years ago.
@Jacob Beg Any eviction at any time is an immediate No, with no exceptions ever.
It is hard to get an eviction on your record with many opportunities to avoid that. If you were successful in achieving that, just wow, next.
Again NO, same as just about everyone else who has replied.
Evictions AREN'T that hard to get! One serious illness ("long COVID" is a good example), one serious injury, one serious tangle with the justice system (prosecution for crime you didn't commit) and you're toast through no fault of your own.
@Jacob Beg It is a fundamental error to ever ask "should I or shouldn't I rent to this person", that question should NEVER exist, it's a non-starter.
The entire point and purpose of rental property is to rent/lease it, so the answer is always a "YES", that never changes, only the underlying TERMS change. So, the accurate question is: Under what Terms/ Conditions WOULD I lease/rent to this applicant.
As many have said, one must have a stated criteria for approval. This is basic of basics, so I won't touch on that as it's obvious.
Now, those stated conditions for approval are just that, the terms and conditions that are an automatic approval. Now, if someone falls short of that, it should NEVER be an automatic no, that's a novice mistake #1. If an applicant falls short it's just a matter of mitigation, what mitigation does a tenant need to offer to securitize the risk profile to one of an acceptable level. It could be as simple as offering a co-signor, you'd be surprised how often a tenant can get such once asked but never thought to mention it or offer it. I ALWAYS, 100% of the time, no matter how bad an applicant is, no matter how far away it is, I formulate what would be required to achieve an approval, and then I present it to the tenant, it's up to them to get it over the finish line or not.
I had one tenant a short time ago, with way too many large dogs. All else was good but that, and we didn't want to deal with it. So, what we decided as a fair mitigation would be a $10k security deposit. Call it crazy, whatever, it's what was desired as fair mitigation tog et a yes. You'd think a tenant would say no way, that's what we assumed. Tenant paid it.
I have had tenants pay 3 months rent up-front, with term they must at all times stay minimum 90 days ahead, because that gives us an eviction buffer. And tenants appreciate it, they get it, it's a redemption opportunity, and they know they can't f-it up "or else".
To be honest, most of my best tenants are these ones, the "redemption" tenants. And, we are the most securitized on them with the least risk exposure.
Think of it this way, everyone who ever got evicted, started with no eviction ever. Those who go bankrupt, started with no bankruptcy. Tenants who all is fine, have lives that implode and turn into bad tenants, history does not guarantee future. So when I take a tenant who has gone through bad times, I get to securitize against "bad-times", in a standard tenant, nope, we hold that risk and hope things keep going well for the tenant.
I even rented to a tenant recently with NO income, ZERO, NADA, ZIP, ZILCH. Why, she had great credit, paid the entire lease up-front from a verified source that made sense. And she knows she must qualify 90 days before renewal or she must be out at lease end. She applied, gave story of how was going to get employment, would be a automatic no by most, and it was a no by me BUT I told her what it would take to be a yes, and she did it, POW, full years payment up-front.
Pro-Tip: Never give a denial without giving conditions and terms for approval. The best tenants are often the ones who need you the most.
I had a similiar situation recently where i had trouble finding a tenant. One came along with a bankrutpcy and the more i dug the more shadier it sounded. She was willing to pay 2 years up front. After asking her to show slightly more documentation she got offended and declined. A few days later i found normal tenants and all had been well. I think i dodged a bullet there.
I have found the key to being a successful landlord is finding great tenants. They are worth their weight in gold. Lesser tenants can create all sorts of issues the most expensive of which is property destruction. Much better to wait for a better tenant. I also use firm guidelines and check every application against it to keep me out of discrimination trouble. Making different selection criteria or terms opens the door to being accused of discrimination. I require 3x rent in gross income, minimum 640 credit score (you may have to lower that if you are renting C or D class property), no evictions, no convictions, no bankruptcy, 1 year job history and I am sure there are a couple of more. Then I hold out for the right tenant. Happy to keep the property unrented an additional month rather than take a bad tenant. All my tenants are multiple year tenants, always pay on time and rarely make any calls to me for repairs because they take care of the place. So, to answer your question...I would not rent to this person. No way.
Paying 1 year rent up front may sound good at first, but I would also think twice on that. From experience, a tenant may pay rent in advance to avoid being in contact with you especially one with a history like hers. I'm sure they will also not report any issues either. From your point of view things are going well, you have the years rent, the tenant seems to be doing good, no maintenence calls etc. Then when you pay a visit you see they are violating all sorts of rules. Now you have to make a tough decision, keep them as a tenant since they paid rent to end of year, or take steps to get them out for violating rules.
If you do decide to take her up on this make sure your lease clearly states what's allowed and what's a violation, consequences to the violations, and that you will have inspections as allowed by your city.
I personally would not have her as a tenant, too many red flags. Most likely a guaranteed headache. Up front rent is a hidden red flag for me.
For me, eviction is always a no. She knew the repercussions, she could have made the right decision and leave before the eviction but decided not to. I would move to the next applicant.
I disagree. Evictions are easy to avoid if one cooperates with the landlord and at least tries to play along. Evictions are pretty rare. HUD statistics say about 8 in 100.....
@Bruce Woodruff. I agree with you about evictions. I am evicting someone just now and I have given them many opportunities to do the right thing. Tenants have well paying jobs and continue to lie and refuse to pay. Tenants can easily move out as most landlords rather cooperate than be put through the legal grinder.
I disagree. Evictions are easy to avoid if one cooperates with the landlord and at least tries to play along. Evictions are pretty rare. HUD statistics say about 8 in 100.....
If it was a lower rent unit, and she has decent verified income i would consider.... Higher rent there is no way in heck i would run as far away as you can until she proves she can afford a 700$ unit for a few years.
I will suspect anyone claim that they stay with family or parents especially they are 30+ year or older. If you do background check, you may be able to find out if that is really true or not.
I disagree. Evictions are easy to avoid if one cooperates with the landlord and at least tries to play along. Evictions are pretty rare. HUD statistics say about 8 in 100.....
The people who have lost their homes due to the situations I listed would likely disagree with you.