Need an advice on picking a tenant (Just divorced part time teacher)

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Need an advice on picking a tenant (Just divorced part time teacher)

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

hi guys,

I have this rental that is difficult to rent because its in an upscale neighborhood and the rent is expensive (2.7K per month).

A part time teacher who makes 16K per year applied, her main source of income is her alimony and Child support, which comes to 80k per year with her salary.

I asked if she claims the Child support and the alimony on her taxes she said she has been divorced for less than a year so has not claimed it yet on her taxes. She said she will show me bank statements showing the money going into the bank account.

Her dad will cosign (she is 50 years old, the dad has a good state pension)

She is renting an Appartment now in another upscale area, but its too far for her work.

Says her ex husband will be coming from the neighboring state every other week to see the kids and will stay in the house.

Would you count alimony and the Child support as an income?

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Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,

I would want a copy of the court order showing the child support, and bank statements showing a year or more in regular payments of that amount. Probably also copy of decree authorizing him visitation.  Also run full credit/background on Dad. Is he local to the rental?  With adequate proof, yes I would count the income.
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  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    I would want a copy of the court order showing the child support, and bank statements showing a year or more in regular payments of that amount. Probably also copy of decree authorizing him visitation.  Also run full credit/background on Dad. Is he local to the rental?  With adequate proof, yes I would count the income.
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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    3y

    Even if you count it all she does not qualify or barely does. The fact that her dad will be a guarantor helps her position. I'd want to consult a lawyer to see if anything more needs to be looked at like that Decree and the fact that he resides in a different state. 

    The ex needs to be on the lease and you need to BG and credit check them all. Relationships in a divorce are fragile and you do not want to be left holding the can in the event of any changes.

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  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y

    As both an investor and landlord, this seems straight forward based on the info you provided. Assuming your gut feeling about her was good, I would probably consider her a potentially good tenant but as always, you need to do your homework. In this case, that means doing the BG check on her and her ex-husband if he will be staying there. You will also need to see recent bank statements, the alimony and child support payments documentation and a reference from her current landlord. 

    Her dad cosigning is good sign as well since it is another person on the hook in case she is unable to pay rent. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    Yes, alimony and child support are forms of income. You need to verify that what she claims is true. There should be proof of how much she is awarded, and proof that she is actually receiving it.

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  • Mary Jay
    OP
    Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
    3y

    Thank you so much guys!!!

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  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    3y

    @Mary Jay,

    Look at the ages of the kids,  and also what is the ex-husband's job?   If the kids are older,  in a year or so she won't be able to afford it if alimony/child support stops, but if they are young and the ex-husband's work is very stable (ex: accountant/lawyer), it would be a safe bet.  Just make sure to look at the big picture and what the situation might look like in a year, or two years down the line too.

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  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    She cannot make the rent payment if she has ANY other debts (ZERO car/ student loans/credit card bills).

    Divorce decree, ages of children under 15 so 3 more years of child support continues, her past 8 bank statements showing the $6668 going in monthly.

    Exhusband will stay in house and where does she go? weird. I like the suggestion to make him co-sign as well since he will live there 20% of the time.

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  • Mary Jay
    OP
    Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
    3y

    Thank you guys! You all are the best!!!

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