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Hector Bermudez
  • New to Real Estate
  • New Hampshire
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Would you Lease or Not to Lease?

Hector Bermudez
  • New to Real Estate
  • New Hampshire
Posted Jun 10 2024, 12:06

Hello BP,

I am looking for some opinions on whether I should lease to an applicant or not. Here is the scenario:

The unit is a 3/2 duplex unit for $1550 per month with a $3100 Refundable Deposit.  The unit has brand new paint and floors. The applicant(s) involve a Father, Mother, 31 year old daughter and 7 year old son.  The Father and Mother make roughly $3800 per month from SSA.  The adult daughter makes about $1600 per month. The Father works in construction project management consulting and can make about $5000 per month over the course of a year; however, it is cyclical and currently does not have a contract. He is anticipating a contract in the next quarter or two; however, not guaranteed.  He is also an owner of a duplex. His long term tenant recently moved out and is about to rent it to his adult son, who will be paying him enough to cover the monthly expenses.  No rent roll for this new tenant.

The property I am renting is in a new state for them.  They are looking to make the move to join up with the adult daughter and so their 7 year old can go to the local school district, which has good ratings.

I also learned that the adult daughter is looking to move from her current apartment which is in the midst of a bed bug infestation.  Apparently, that unit is being treated for the issue and involves her leaving her belongings (bed, furniture) within the unit to be treated.  She also has an older dog that has a low level of urinary incontinence.  The floors in the unit are tile and vinyl planking throughout.

Based on the above, the applications were denied.  

The Father applicant responded by offering 6 months of rent upfront (even the entire year) and is willing to provide 3 months rent of refundable security deposit for the additional dog risk. They would also start making rent payments immediately (if he pays for 6 months upfront) to show ability to pay.  

One of his bank accounts shows $15K, another just a few thousand. He is also using a HELOC to pay for the turnover costs of losing his long term tenant and making it rent ready. He said that will be about a $30K rehab.

I am only considering this because the unit has been listed for about 20 days and so far 10 inquiries have not resulted in good options. This one is at least willing to pay up front; however, I am concerned about bed bugs being brought in and the dog issue.

What would you do based on their willingness to pay up front? How much concern should I have about the bed bug and dog situation?

Thanks in Advance for you input!

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