Family group with one eviction

[Dave Chow]

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

[Bob Stevens]

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

 Of course, HOWEVER you neeed to hire a PM co or it will not end well. Clevelanad is a tough market, I have 10 years and 100s and 100s and 100s of move in and outs, DO NOT try and go it alone

Did you get the lead inspection ?

BTW you found income of 9k a month in cleveland ??? HMM 

[Dave Chow]

Quote from @Bob Stevens:

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

 Of course, HOWEVER you neeed to hire a PM co or it will not end well. Clevelanad is a tough market, I have 10 years and 100s and 100s and 100s of move in and outs, DO NOT try and go it alone

Did you get the lead inspection ?

BTW you found income of 9k a month in cleveland ??? HMM 

Yes they work from home and have remote 3rd income. 
Our concern is that the mom had one eviction. This would be the first time that we have applicant with eviction shown in the application. 
All 3 has full applications. 
What do you mean "Did you get the lead inspection "? 

[Account Closed]

Not sure what the price of rent is, but $9,000/mo household income in Cleveland is pretty strong.

[Bob Stevens]

Quote from @Dave Chow:

Quote from @Bob Stevens:

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

 Of course, HOWEVER you neeed to hire a PM co or it will not end well. Clevelanad is a tough market, I have 10 years and 100s and 100s and 100s of move in and outs, DO NOT try and go it alone

Did you get the lead inspection ?

BTW you found income of 9k a month in cleveland ??? HMM 

Yes they work from home and have remote 3rd income. 
Our concern is that the mom had one eviction. This would be the first time that we have applicant with eviction shown in the application. 
All 3 has full applications. 
What do you mean "Did you get the lead inspection "? 

 EXACTLY why you better hire a PM co,,,,,,,ALL properties must pass lead inspection, 

Again hire a PM before you lose your shirt,    I am happy to recommend, I know them all, 

AGAIN, 9k income from a Cleveland tenant, VERY UNcommon, 

[Vadim F.]

9k monthly income is just about what you will get CA not Cleveland. Are these w2 jobs, or are they 1099?

[Adam Martin]

I don't know anything about Cleveland however if anyone in the group has an eviction it is an automatic pass.  I also ask before they even apply and if they say they have been evicted or had one filed I won't even show.  If they lie they wasted their application fee.  I'm also concerned with how much money they make but how low their scores are.  What is bringing them down and how recent are the negatives.  How much you make is only part of the equation but the credit score tells how responsible they are with it.  

[Theresa Harris]

If there was one eviction 9 years ago, I wouldn't worry about it.  Ask her about it. 

[Bob Stevens]

Quote from @Account Closed:

Not sure what the price of rent is, but $9,000/mo household income in Cleveland is pretty strong.

Pretty strong, its Nonexistent, I do not believe this post, I have done about 2k move in and outs, NEVER had a renter with 9k income, why would they rent? In 2 months, they can save enough for a DP, makes zero sense to me . 

[Bob Stevens]

Quote from @Adam Martin:

I don't know anything about Cleveland however if anyone in the group has an eviction it is an automatic pass.  I also ask before they even apply and if they say they have been evicted or had one filed I won't even show.  If they lie they wasted their application fee.  I'm also concerned with how much money they make but how low their scores are.  What is bringing them down and how recent are the negatives.  How much you make is only part of the equation but the credit score tells how responsible they are with it.  

 The post makes no sense, 

[Chris B.]

I'm not in the Cleveland market, and none of us know the exact home you are renting and at what rate but with that disclaimer that I know nothing about your market and am full of ideas, here we go...  

$9k income.  Is this a $3k / month property you are renting?  Otherwise if they are trying to rent a $1.5k property with that "claimed" income, its a red flag.  Working from home means nothing.  Check with their employer that they are employed there and have been so for a while.  Ask what title the person holds.  Pretty easy to look up average rates (if the employer won't say the pay) in any market for a position online.  What those above me are getting at is that the reported income is highly suspicious.  I've seen fake paystubs.  Applicants dish them out in every market.  Check the past few months of deposits into their bank account.  Ask them to pull it up on their phone right in front of you and show you a few recent statements with this paychecks deposited into their account.  It should be regular and every week or two.  It should be fairly consistent in amount also.  Last, it should add up to what they claim minus reasonable withholdings.  They can't easily fake this check.

If they are self employed, also check several months of bank deposits and look at the last 2 years of tax returns.  Don't feel bad asking as self-employed people are used to this request.

650 and 600 aren't horrible credit scores, but they are FAR from great.  Why do they have such low credit scores with such good income?  Ask for an explanation.  Do a background check with credit and criminal history yourself and verify their information.  Don't accept a credit check an applicant provides to you.

I normally deny all eviction applicants.  In this case, the mom has declared no income and its been a long time so I'd ask about it, but likely allow her.  I ask applicants a lot of questions in person casually while showing the property.  A lot are full of BS.  I can never tell who is telling the truth but I can get a gut feeling.  On the other hand, applicant say and do lots of stupid things that I will disqualify them for.  For example, I ask if they smoke or vape.  Answer is no and then after the viewing I see them though a window talking out by their car while vaping.  Denied.  Not only is that against my rules, but they also lied to me.  This kind of stuff happens frequently.

Overall, there are a lot of hints that something is wrong here.  Don't trust anything you are told or shown.  Verify everything.

[Laura Stayton]

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

 Risky in my opinion.   Do they have good recent rental references? 

[Henry T.]

I personally would not accept those credit scores. Maybe for Cleveland its good, I dont know. Income needs one or two year verification. I always ask myself, if things went south, how easy would it be to garnish their wages.

[Simon Ashbaugh]

Ask for past landlord referrals and call them

[Corby Goade]

Nope. Evictions are a deal breaker. What other information do you need- they don't pay their bills and they got kicked out of a place already. You don't want that headache. 

Surely there are other tenants in your market who pay rent. 

[Ray Hage]

A 9 year old eviction wouldn't deter me but I would want to be 100% sure that the income is real, you could ask for bank statements to see if that income is really going or if they are just self-reporting it. Hopefully it is for real. If they work a W-2 job, ask for the paystubs as well.

Of course, check with at least two of the previous landlords. Always be careful with that as well. On the most recent property I rented out, a lady gave me a fake landlord. Being a landlord myself, I could tell it was bs. If you can't listen and read people, you'll want a great PM to handle this.

[James Wise]

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

 $9k/mo in income but they have an eviction and want to put 3 adults and 1 child into a duplex that's prolly like $800/mo? Lol, they're taking you for a ride my man. Deny.

[Nathan Gesner]

I'm concerned that you don't really know how to screen. They claim high income working from home, but they have crap credit scores? How did you verify their income?

Personally, they sound high risk and I would be digging deep before I even considered them.

[James Hamling]

Quote from @Dave Chow:

Quote from @Bob Stevens:

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

 Of course, HOWEVER you neeed to hire a PM co or it will not end well. Clevelanad is a tough market, I have 10 years and 100s and 100s and 100s of move in and outs, DO NOT try and go it alone

Did you get the lead inspection ?

BTW you found income of 9k a month in cleveland ??? HMM 

Yes they work from home and have remote 3rd income. 
Our concern is that the mom had one eviction. This would be the first time that we have applicant with eviction shown in the application. 
All 3 has full applications. 
What do you mean "Did you get the lead inspection "? 

Did you actually verify their incomes, or are you just going off what they stated as income? 

A tenant can easily create a fake paystub, I see it all the time. This just feels off to me, the scores and incomes don't mesh, especially for OH. Doesn't pass my sniff-test. Dig deeper, verify. 

[Alan Asriants]

Ask her about the eviction. See if she gives you a straight answer or if she beats around the bush.
Call all previous landlords - including the one who filed for eviction
Income is strong, and credit is decent.

9 years ago is a long time

You never know, maybe the old landlord was a complete jerk

Trust but verify

[Richard F.]

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

Aloha,

There are a number of issues that need further evaluation:

1) Income. What exactly is this from? If they are "working from home" what does this entail? INCOME does not equal Spendable Cash. For example, if they are selling goods online, and receiving 9K in "payments", they still must have a significant "cost of goods" sold, like any business...raw materials or products they are adding value to or simply repackaging. Their spendable cash will be a fraction of the income. They can show deposits on their bank statement to "prove" the income, but you need to dig deeper to see what they are selling/doing, and what is the cost for them to do so. They should provide complete tax returns, prepared by legit third party for the past year or two. These will show you their true income.

2) Husband and Wife's credit scores. Not great...I NEVER pass judgment based on the "Score" alone. I pull the full Credit report to see what every account is, history, age of account, type of account, balance (or past due balance), current and prior addresses and employment, and more. The score alone is nearly meaningless, as I have had high scoring Tenants that trashed a place and stopped paying rent; I have also had low scoring tenants that were fantastic. You need to see what goes into making that score. ALSO, for "Mom", Nothing unusual here, IF the Husband and Wife ACTUALLY have verifiable income and other issues checked out ok, they will be the primary parties and are likely helping out an elderly parent that perhaps lost a husband to divorce or death and is not able to support herself at this stage of life. I would be cautious to ensure they will ALL be moving in...you do not want to end up with them just helping to get Mom into a place alone. Do they OWN a home? If not, why not?

3) A nine year old eviction ALONE would have little effect on an approve/deny decision, especially with QUALIFIED co-applicants. People make mistakes, and life happens. What I am looking for is a PATTERN of mistakes, poor decisions, and irresponsible behavior, in all areas...financial, employment, legal, character.

Study the details, ask the "why's", see if all of the provided and verified info "fits" together and makes sense.

Lastly, here is a little more insight to your credit scores:

[Dave Chow]

Quote from @Richard F.:

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

Aloha,

There are a number of issues that need further evaluation:

1) Income. What exactly is this from? If they are "working from home" what does this entail? INCOME does not equal Spendable Cash. For example, if they are selling goods online, and receiving 9K in "payments", they still must have a significant "cost of goods" sold, like any business...raw materials or products they are adding value to or simply repackaging. Their spendable cash will be a fraction of the income. They can show deposits on their bank statement to "prove" the income, but you need to dig deeper to see what they are selling/doing, and what is the cost for them to do so. They should provide complete tax returns, prepared by legit third party for the past year or two. These will show you their true income.

2) Husband and Wife's credit scores. Not great...I NEVER pass judgment based on the "Score" alone. I pull the full Credit report to see what every account is, history, age of account, type of account, balance (or past due balance), current and prior addresses and employment, and more. The score alone is nearly meaningless, as I have had high scoring Tenants that trashed a place and stopped paying rent; I have also had low scoring tenants that were fantastic. You need to see what goes into making that score. ALSO, for "Mom", Nothing unusual here, IF the Husband and Wife ACTUALLY have verifiable income and other issues checked out ok, they will be the primary parties and are likely helping out an elderly parent that perhaps lost a husband to divorce or death and is not able to support herself at this stage of life. I would be cautious to ensure they will ALL be moving in...you do not want to end up with them just helping to get Mom into a place alone. Do they OWN a home? If not, why not?

3) A nine year old eviction ALONE would have little effect on an approve/deny decision, especially with QUALIFIED co-applicants. People make mistakes, and life happens. What I am looking for is a PATTERN of mistakes, poor decisions, and irresponsible behavior, in all areas...financial, employment, legal, character.

Study the details, ask the "why's", see if all of the provided and verified info "fits" together and makes sense.

Lastly, here is a little more insight to your credit scores:

There would be no income issue.

Have the husband/wife sign the lease as the lessee , while the mother just as residence on the lease. Would that be a bit better and reduce the risk, compared to all as lessee?

[Vadim F.]

Quote from @Dave Chow:

Quote from @Richard F.:

Quote from @Dave Chow:

We are having a duplex to rent received an application group.

I would like to know if we should accept this application group.

Husband: credit score 650, income $5000/MO, 

Wife: credit score 600, income $3800/MO,

Husband's Mom: credit score 570, income 0(retired). But has ONE eviction history. 

Son: 12 years old. 

All of them have criminal -free background. 

One big concern is that the Mom had an eviction about 9 years ago.

Should we accept this?

Aloha,

There are a number of issues that need further evaluation:

1) Income. What exactly is this from? If they are "working from home" what does this entail? INCOME does not equal Spendable Cash. For example, if they are selling goods online, and receiving 9K in "payments", they still must have a significant "cost of goods" sold, like any business...raw materials or products they are adding value to or simply repackaging. Their spendable cash will be a fraction of the income. They can show deposits on their bank statement to "prove" the income, but you need to dig deeper to see what they are selling/doing, and what is the cost for them to do so. They should provide complete tax returns, prepared by legit third party for the past year or two. These will show you their true income.

2) Husband and Wife's credit scores. Not great...I NEVER pass judgment based on the "Score" alone. I pull the full Credit report to see what every account is, history, age of account, type of account, balance (or past due balance), current and prior addresses and employment, and more. The score alone is nearly meaningless, as I have had high scoring Tenants that trashed a place and stopped paying rent; I have also had low scoring tenants that were fantastic. You need to see what goes into making that score. ALSO, for "Mom", Nothing unusual here, IF the Husband and Wife ACTUALLY have verifiable income and other issues checked out ok, they will be the primary parties and are likely helping out an elderly parent that perhaps lost a husband to divorce or death and is not able to support herself at this stage of life. I would be cautious to ensure they will ALL be moving in...you do not want to end up with them just helping to get Mom into a place alone. Do they OWN a home? If not, why not?

3) A nine year old eviction ALONE would have little effect on an approve/deny decision, especially with QUALIFIED co-applicants. People make mistakes, and life happens. What I am looking for is a PATTERN of mistakes, poor decisions, and irresponsible behavior, in all areas...financial, employment, legal, character.

Study the details, ask the "why's", see if all of the provided and verified info "fits" together and makes sense.

Lastly, here is a little more insight to your credit scores:

There would be no income issue.

Have the husband/wife sign the lease as the lessee , while the mother just as residence on the lease. Would that be a bit better and reduce the risk, compared to all as lessee?

 Ask yourself the question, how does it make sense for them to have $9k income and want to rent at $900/mo unit? Something doesn't add up at all here....