Does this tenant sound fishy?

Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes

What do you guys think?

The rent is 2.7k

The tenant (him and his wife) make 200K per year, bad credit b/c some credit card bills and medical bills are in collection.

Lives with his relatives now (I assume not paying rent, even if paying rent then I am sure its less than 2 k per month)

Has been working for 8 months, so says working on the credit and trying to fix it. Credit now 560 (him) and 600 (wife)

If you make 200k, why do you have credit cards in collection? Makes no sense, right?

Says has 4 other rentals that want him to sign the lease and wants my reply by saturday.

He wants my house because its in a better neighborhood than the other plus mine is cheaper by 800$ than the other.

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Bjorn AhlbladPro Member

Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes

@Mary JayI'd say quite fishy. Pressuring you, in a hurry, and the rest. I'm sure he is exaggerating income. Some folks, even big earners can be terrible money mangers.

NEXT!

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Mary Jay
OP
Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
3y
The other houses are 3.5K
My house is not updated so will be hard to get 3.5k so the rent for my house is not too low
0 Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
3y
@Mary JayI'd say quite fishy. Pressuring you, in a hurry, and the rest. I'm sure he is exaggerating income. Some folks, even big earners can be terrible money mangers.
NEXT!
8 Reply
Jevon Shaw
Investor · DFW, TX · Member since 2022 · 198 posts · 161 votes
3y
As Bjorn alluded to, the particularly fishy part is that he is trying to put pressure on you. As if he's trying to sell to you. I'd pass.
2 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
3y
I'm gonna go with "fishy" for $200 Alex. :)
1 Reply
Anna Beckerleg
Real Estate Broker · Milwaukee, WI · Member since 2018 · 3 posts · 4 votes
3y
I'd say 9/10 times in this business when we get a feeling that something seems "off", we are right. I'd still recommend doing your research so you have a valid reason to either deny or approve the applicant for the house (proof of income, credit/background check, validate rental hx, etc.) but better to be in the rare situation where you miss out on a good tenant then place a tenant who becomes headache for the property.
2 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Walk away. If he has four other rentals begging for him, let him go to one of them.
How are you verifying his income? Don't accept what they tell you. In fact, you have to watch for fake paystubs, bank account balances, and other documents because forged versions can be purchased online. Here's just one example: https://www.thepaystubs.com/?g...
My application says they must show "verifiable income" equal to 3x the rent. I look at pay stubs and I will often call the employer to verify. If I do call the employer, I find the number on my own instead of relying on whatever the applicant has provided because it could be the cell number for a buddy pretending to be the employer.
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6 Reply
John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
3y
Do you have rental criteria? Does this couple meet that criteria? If so, rent to them, if not, move on. Their credit score wouldn't qualify them for one of my $800 rentals. Despite what many say, I've experienced a noticeable correlation between credit score and rent payments. You should have a published rent criteria that the potential tenants can view to determine if they meet your standards. If it's all subjective, that's when fair housing laws can come bite you in the butt. We also require "proof of income". If they can't prove it, it doesn't count.
0 Reply
Laura Stayton
Property Manager · DE · Member since 2023 · 248 posts · 133 votes
3y
Quote from @Mary Jay:

What do you guys think?
The rent is 2.7k
The tenant (him and his wife) make 200K per year, bad credit b/c some credit card bills and medical bills are in collection.
Lives with his relatives now (I assume not paying rent, even if paying rent then I am sure its less than 2 k per month)
Has been working for 8 months, so says working on the credit and trying to fix it. Credit now 560 (him) and 600 (wife)
If you make 200k, why do you have credit cards in collection? Makes no sense, right?
Says has 4 other rentals that want him to sign the lease and wants my reply by saturday.
He wants my house because its in a better neighborhood than the other plus mine is cheaper by 800$ than the other.
I wouldn't rent to him. Being in this business as long as I have I've learned the #1 indicator of a responsible tenant is credit score. Just like any other industry....if you go to get a mortgage, a car...anything - you are only able to get a loan if your credit is good or pay high interest rate. Why? Because you're high risk.
Walk away...
1 Reply
Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
3y
For the same reason a person making $100K has credit cards in collection. And for the same reason that a person making $50K has credit cards in collection. And for the same reason that a person making $300K has credit cards in collection. They live above their means regardless of what lever their means are at.

A significant number of people in this country spend based on their income. They change jobs and get a nice pay bump, they don't save or pay down debt, they buy a new car. They get a raise, they upgrade their vacation. They become accustom to the better lifestyle and keeping up appearances and any bump in the road causes disaster.
The fact that he is pushing you to sign the lease is what gives me pause. That alone would be a hard no for me. Nothing good will come out of rushing into a decision without checking everything out before signing the lease.
1 Reply
Erik Anderson
Saint Cloud, MN · Member since 2017 · 90 posts · 70 votes
3y
Their credit scores are much too low for my criteria. What is your criteria?
0 Reply
Mary Jay
OP
Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
3y
Quote from @Erik Anderson:

Their credit scores are much too low for my criteria. What is your criteria?

I usually want above 650.
What about you? What is the minimum you will accept?
0 Reply
Mary Jay
OP
Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
3y
Thank you guys so much!
I agree with all of you!
Always great to hear your wisdom!
0 Reply
Allan Smith
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
3y
When you verified income how much were you able to verify? They need to show documentation for that income.
0 Reply
Joel Case
Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
3y
I am living with relatives and make $200,000 a year. I also am WORKING ON getting my collections paid off.
That's fishy. Also he is telling you he has other LL wanting him to sign? Go sign them then!
That being said, make sure you are not discriminating as mentioned above.
0 Reply
Tim Miller
Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
3y
Sorry Mary but it sounds like you're running by the seat of your pants or a wing and a prayer. Either way, you have to get on your game or get a property manager. Collections issues, making $200k ????? others are begging him???? I'd already have blocked his number, delete any continuing in coming emails.
You need to get better system in place to vet future tenants and never take them at their word. Good luck!
1 Reply
Erik Anderson
Saint Cloud, MN · Member since 2017 · 90 posts · 70 votes
3y
Quote from @Mary Jay:

Quote from @Erik Anderson:

Their credit scores are much too low for my criteria. What is your criteria?

I usually want above 650.
What about you? What is the minimum you will accept?
660 is my minimum, but I am generally able to attract interest from people with excellent credit (high 700s)

Someone making 200,000 per year with 600 credit is not good. I'd much rather have renters making much less with a much higher credit score.

0 Reply
Matt Bishop
Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes
3y
@Tim Miller, you're right! A fantastic professional property manager is almost always the best way to profit and enjoy being an owner.
0 Reply
Lee Prokopy
Member since 2023 · 3 posts · 0 votes
3y
Even if the candidate has a great credit score, we never know what can go wrong... I also don't like how he sets a time limit for your reply, adding that there are other alternatives. To me that is one of the most obvious psychological tactics (not so positive) that makes people unable to decide rationally. Having burnt many times, I go by the numbers and records.
0 Reply
Mary Jay
OP
Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
3y
Quote from @Erik Anderson:

Quote from @Mary Jay:

Quote from @Erik Anderson:

Their credit scores are much too low for my criteria. What is your criteria?

I usually want above 650.
What about you? What is the minimum you will accept?
660 is my minimum, but I am generally able to attract interest from people with excellent credit (high 700s)

Someone making 200,000 per year with 600 credit is not good. I'd much rather have renters making much less with a much higher credit score.

Thank you! What do you do to attract high credit people?
0 Reply
Chris Davidson
Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
3y
@Mary Jay the tenant doesn't pick the timeline for review process you follow your review. It sounds fishy. If he wants yours he will wait. I don't know many land lords chasing tenants to sign a lease, and he has 4 doing so...
Other note what would it cost to increase your rent, if some minor updates an extra 800/month is nearly 10k/ year more....
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Any time you have a potential tenant that is trying to set the rules, you'd best run. If they are trying to control you at this point in the relationship, imagine what they will be like in a year.....
0 Reply
Erik Anderson
Saint Cloud, MN · Member since 2017 · 90 posts · 70 votes
3y
Quote from @Mary Jay:

Quote from @Erik Anderson:

Quote from @Mary Jay:

Quote from @Erik Anderson:

Their credit scores are much too low for my criteria. What is your criteria?

I usually want above 650.
What about you? What is the minimum you will accept?
660 is my minimum, but I am generally able to attract interest from people with excellent credit (high 700s)

Someone making 200,000 per year with 600 credit is not good. I'd much rather have renters making much less with a much higher credit score.

Thank you! What do you do to attract high credit people?

People with high credit scores are more financially savvy. I have an excellent credit score. What do I do when I am looking to buy something? What would I look for if I was looking to rent a place?

I'd look for a good quality property at a good value. I'd also look for a good quality listing.

So, what I do is I list my properties slightly below market rate. Nothing drastic, but slightly.

I also have a very professional listing, with good quality pictures.

People who are more financially savvy will notice these things.

My belief is this: I'll make more money in the long-run with my strategy.

The high credit folks on average take better care of properties, cause less headaches, and of course have higher performance with on-time payments. If they see value with the property they stay longer as well.
I see folks more concerned about getting a specific dollar amount of rent than getting the right tenant in their property.

0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
Fishy. Run, don't walk away, from this prospect! NEXT.
0 Reply
Mary Jay
OP
Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
3y
Quote from @Chris Davidson:

@Mary Jay the tenant doesn't pick the timeline for review process you follow your review. It sounds fishy. If he wants yours he will wait. I don't know many land lords chasing tenants to sign a lease, and he has 4 doing so...
Other note what would it cost to increase your rent, if some minor updates an extra 800/month is nearly 10k/ year more....
Thank you!
Thats a great idea!
It probably needs about 10k or so to get 3.5K in rent.
But then it will be harder to find tenants who can afford the place

1 Reply
Mary Jay
OP
Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
3y
Quote from @Erik Anderson:

Quote from @Mary Jay:

Quote from @Erik Anderson:

Quote from @Mary Jay:

Quote from @Erik Anderson:

Their credit scores are much too low for my criteria. What is your criteria?

I usually want above 650.
What about you? What is the minimum you will accept?
660 is my minimum, but I am generally able to attract interest from people with excellent credit (high 700s)

Someone making 200,000 per year with 600 credit is not good. I'd much rather have renters making much less with a much higher credit score.

Thank you! What do you do to attract high credit people?

People with high credit scores are more financially savvy. I have an excellent credit score. What do I do when I am looking to buy something? What would I look for if I was looking to rent a place?

I'd look for a good quality property at a good value. I'd also look for a good quality listing.

So, what I do is I list my properties slightly below market rate. Nothing drastic, but slightly.

I also have a very professional listing, with good quality pictures.

People who are more financially savvy will notice these things.

My belief is this: I'll make more money in the long-run with my strategy.

The high credit folks on average take better care of properties, cause less headaches, and of course have higher performance with on-time payments. If they see value with the property they stay longer as well.
I see folks more concerned about getting a specific dollar amount of rent than getting the right tenant in their property.

Smart! Do you remodel your properties? Do you paint every time a tenant moves out?
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