Should I reject these applicants and keep looking?

Question

I tried ABNB out with one of my rentals last year and am converting it back into a long term rental and also trying mid term rentals until I find a long term tenant.

Applicant A: Mid term. Travel nurse and her husband plus dog (I don't like dogs and usually don't accept them). They would rent for 3-5 months at 2K a month. It left a bad taste in my mouth that they tried to negotiate the rate down so they could pocket more of the 4K a month the employer is paying for their lodging....plus he's an insurance adjuster so I worry about him trying to pull some kind of "injury" scam while he is here.

Applicant B: Long term. Entitled grown man. Asked if I'd be willing to buy a carport for his parking spot at my expense. I'm like, ugh, no.

Or....option C is I keep it as a short term for now and give ABNB another try this summer. It was booked solid last summer. I'm getting inquiries from insurance companies for my place too, 7K for a 50 day stay...but no deal yet.

So would you rent to Applicant A? Or?

Jack B. · Answer

My rentals are close to Seattle but in the surround burbs, Renton, Maple Valley, Auburn, Federal Way, the list goes on and on....but I hear ya. When the market drops again and rates are low, I intend to 1031 my entire portfolio out of state, possibly to Idaho. They still have good appreciation, but aren't socialist.

Bruce Woodruff · Answer

Of course this is just my opinion.....But there are things in life that you negotiate and things that you just don't. Like the price of a meal at a restaurant...it just is what it is. I see rent as one of things. It's just 'tacky' to try and ask for that to be lowered. Once again IMHO.....

James Carlson · Answer

@Jack B.

I agree with most of the above. If I had to choose, I'd suggest the inverse of what @Nathan Gesner said. I'd probably lean toward Applicant A because I don't find their request as egregious as the carport dude. But really, as long as you feel good about your pricing, I'd pass on both.

With our midterm rentals in Colorado, a ridiculous request such as building a carport is a good indication that they'll be terrible tenants. Two weeks in, you're going to get requests to repair a crack in the driveway, buff out a cosmetic stain on the hardwood, replace a perfectly fine coffee maker that doesn't have a timer for the morning etc.

Nathan Gesner · Answer

Set standards and uphold them. I don't recommend the first applicant because you'll have to go look for another replacement in a few months. The second tenant may be perfectly fine. He asked for a carport, you said no, and he accepted your answer. That's not a terrible thing if he meets your other qualifications.

I'm a little concerned that you would write an applicant off because of a question. The more important factors are his ability to pay rent, maintain the home, communicate, etc.

Henry T. · Answer

Reject. At the size of your posts I'm sure you know what youre doing screening wise, high credit scores, high qualifications, job length, 3x, and so on. Bullet proof lease with LOTS of rules and clauses. I've been doing this game over 30 years now. Seattle has turned toxic. I'm closing doors and presently rehabbing to sell out. Seattle landlording is dead to me. 1st in. $10 late fee. Unlimited occupants. Can't evict family with kids in school. Winter eviction ban. Ridiculous "just cause". Today they're voting on 5% rent cap. THEY just dont quit. Why deal with the anti-landlord environment? If you're younger I'd suggest you get out and go to a landlord friendly state where you have some rights and less stress. Good luck Jack!

Bruce Woodruff · Answer

I agree......

Jonathan R McLaughlin · Answer

@Bruce Woodruff I hear that and generally agree. But I think a reasonable person could have a different view of whats appropriate and it's not a red flag by itself. And a lot depends on the why and how they ask.

You love a place and it is not quite in your budget and you ask for a number that is? I wouldn't see that as offensive. And I'm just as comfortable saying "no the price is the price" as "yeah I can do 1150 instead of 1200" in February. The guy with the audi copping an attitude and telling me its worth less than I priced it? Yeah, get bent.

I think with this poster's situation it is a little less clear cut what the standard negotiation ettiquette is.  He is crafting an option (medium term, furnished rental) that seems a little more open to negotiation than a cut and dried rental posting.

Jonathan R McLaughlin · Answer

I wouldn't hold tenant A's attempt at negotiation against them. They are given a stipend to use as best they can and they are trying to maximize their advantage. Why is that a negative? Seems you just say yes or no to their proposed rate.

I mean as a landlord you pay a mortgage (presumably) and try to charge tenants as much as you can to maximize your earnings. I'm not seeing any real difference there.I'm not saying to take them, just that you seem to be holding that against them. Work from home? Meh. Whatever, probably makes the dog less likely to bark.

Should I reject these applicants and keep looking?

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