Potential interested tenant half the country away...???

Question

Hey guys,

This is concerning my very first rental property, which is located in Iowa about 5 minutes from where I live.  There is plenty of local interest, but I've also got an individual who lives in Oregon that is interested, as they plan on moving closer to family.

Obviously, people who move from out of state are in just as much need for housing as someone moving across town, but I'm wondering how to approach this individual.  Should I just straight up consider not going with them based upon the fact that they are half the U.S. away as that presents some certain challenges in areas of screening them.

They want to send the first month's rent and deposit by mail and have a place lined up before getting to Iowa.  Seems reasonable enough, but what does BiggerPockets think?

Jon Holdman · Answer

The certified check scam works like this.  They send you a certified check for more than you asked for.  You deposit it.  They they contact you panicked.  They say their company or whatever sent you too much money and part of that was intended for moving expenses or some such.  And could you please wire it back to them ASAP.  You do.  A few weeks later your back tells you the cashier's check was forged and they're taking the money out of your account.  You're out whatever money you sent the scammer.

Most common if the originator is outside the US.

So, request a USPS money order.  These can be verified:

https://www.usps.com/shop/accepting-money-orders.htm?

On the rare ocassions I hold a unit for someone I require a non-refundable hold deposit equal to the deposit.  I'll only hold for a few days, maybe a week.  If they don't sign the lease as agreed, I keep it.  So, I would send them my hold form, tell them to sign it (notarized would be best), and send it along with a money order for the exact amount.  Then, when they show up to sign the lease, they hand over a months rent (MO or cash), you hand over the keys, and everyone signs.

Kimberly T. · Answer

Well I'm going to go against the grain here and say that I would insist on meeting them in person, and making sure they saw the unit in person, before taking a deposit and signing a lease.  Part of my screening criteria is checking the prospective tenant out in person, and checking out the car they are driving.  If they are dressed like slobs and/or have a messy car (food wrappers, papers scattered about, etc.), I won't rent to them.  Simply part of our screening criteria, and we insist on it for all prospective tenants.

Account Closed · Answer

I completely agree with you @Kimberly T.  I once rented to someone moving from Florida to California, sight unseen. They paid rent and security deposit in advance, no problems there. But when they arrived, they hated the place. Nitpicked everything and refused to move in. They threatened all kinds of stuff, so I just gave them their money back and moved on. I now never rent to anyone sight unseen. Plus I want to check them out in person too.

Elizabeth Colegrove · Answer

We have active military members who rent site unseen from us all the time. That being said we have protections. We have a site unseen part that basically says they know that they are not looking at the house and are still responsible for the house. We also have a buy out clause. That way if they do try to leave us high and dry we can keep the deposit. It also allows us to after the rest of the money if we wish.

Harold Anderson · Answer

We rent some rooms out and, when we advertise, half our responses are scams.  We learned that if it's a young woman in her early 20s whose uncle or other  benefactor will be sending us a check, we don't respond.  We did, once, accept an out of state man who was a travelling PT and needed a place quickly.  Wonderful guy but after being there for a month, decided it was too far from his work place.

I was originally taken in by the young professional women.  They would send messages trying to gain my trust.  But I always insisted they see the place first.  That stopped the messages.

James Wise · Answer

I have done it. But due to reasons others have pointed out if you have other qualified tenants that are local might just be better of going with them.

Kimberly T. · Answer

Excellent point that I neglected to explain, @Michelle L.  Landlords want to make sure they like the tenants, but it's also important that the tenant likes the unit and neighborhood.  A tenant who rents a place sight unseen, and then turns out to hate the unit or area, is going to be a big headache for the landlord.

Amorette Mason · Answer

I have rented to people who originated out of town and had no issues.  Please do heed all the others' advice and do your due diligence.  If it sounds unrealistic, it probably is.  Usually they take at least one trip out prior to making an official commitment.  The only time someone offered to send me money with no reservations and with only basic information on the listing, it ended up to be a scam.

Good luck!

Account Closed · Answer

Only if they have a local person that will visit and vouch for the property or they have been there before and are familiar with area and housing type.  Hawaii landlords get many requests from out of state renters.  Smart ones will not rent until they are on island.  Do you really want an unhappy tenant?  Also, be aware of scams with "certified" checks.

Potential interested tenant half the country away...???

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