Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
18y
I do everything MikeOH does except for #3 and #6
I don't do 3 because I'm not sure of the process in my local yet. I will be researching this soon though.
I don't do 6 because anyone they put down on their app is going to paint a rosey picture for them.
Things I do in addition.
I scope out their car to see how well it's maintained and how clean it is inside. (does it look like a mcdonalds dumpster and have bald tires?)
I check their current landlord and also their previous one. The previous one is more important. When I call I always say:
"Hi, I'm calling in regards to Jane Doe. She is interested in renting an apartment from me and put your name down on the application. How do you know Jane?"
You can tell immediately if the person is a fake because they will be stumbling to figure out what role they are supposed to be playing (are they the friend, former landlord, employer)
Forgetting a form for them to fill out is sometimes good to, it gives you an excuse to go to their current apartment to knock on the door and peer inside to see how their housekeeping skills are. Better to see it in someone else's apt than in your own.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y
Originally posted by James Endress:
Require incoming tenants to show at least 40x the monthly rent and have excellent credit
...
I assume that by "40x the monthly rent" you are referring to their annual household income before taxes. That would be similar to monthly pre-tax income of 3 times the rent; this math seems easier for a tenant than 40x :D
"Excellent" credit is not a requirement for tenants where I have rentals; in fact, I hope that they have just decent credit, so that they really won't ever get into a strong enough position to buy - gives you a chance to have a good long-term tenant.
Property Manager · West Des Moines, IA · Member since 2011 · 2 posts · 0 votes
14y
Just curious if anyone is worried about "fair housing or discrimination laws"? Many of these steps used to screen a prospective tenant are 100% against the law, actually they could potentially be against many different laws and could cause HUGE fines. When screening prospective tenants, you must keep your personal opinion out of any decision you make.
Real Estate Investor · Elmira, NY · Member since 2011 · 51 posts · 5 votes
14y
Love all the ideas. I also "consider pets" their are a ton of people who need places to live and have pets that they treat like their kids. Now if I see the pet and it is a flea bag, well move on.
Real Estate Investor · Oklahoma City, OK · Member since 2011 · 3 posts · 0 votes
14y
There's a lot of good advice in this forum. First thing I always think of is the oldest trick in the book, look at their car. They're going to treat your house as bad, or probably worse than their car. If it's trashed, the house is trashed. If it's rusty, your house is going to.... well its not a perfect analogy.
Real Estate Investor · Select a State · Member since 2011 · 11 posts · 7 votes
14y
Wendy said: " you must keep your personal opinion out of any decision you make."
HUH?? Sorry but personal opinion / good judgement is a very important part of the screening process, unless you're not concerned with losing lots of money. I guess it really depends on exactly what you're talking about.
Just be sure that what you "SAY" to the applicant is legal.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
14y
Originally posted by Wendy Mullin:
Just curious if anyone is worried about "fair housing or discrimination laws"? Many of these steps used to screen a prospective tenant are 100% against the law, actually they could potentially be against many different laws and could cause HUGE fines. When screening prospective tenants, you must keep your personal opinion out of any decision you make.
I disagree with your post. Please point out what screening techniques in this thread "...are 100% against the law..." and why they are illegal. Providing links to the laws would be helpful.
State and federal Fair Housing laws and acts, like those in NC, deal with discriminatory housing practices for any person engaged in a real estate transaction (like renting) based on race, color, age, religion, sex, national origin, handicapping condition, or familial status of the applicant. A person's criminal history, financial condition, presence of civil suits (evictions), outstanding judgments or defaults, income, financial abilities, kind of car or truck they drive, etc... these are not protected or covered by fair housing laws.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
14y
Originally posted by J D:
out of curiosity, what can you do legally? seems like some of the recommendations on here are not legal per discrimination practice but are practical.
Can you give an example of "...some of the recommendations on here are not legal per discrimination practice..."? The protected classes are race, color, age, religion, sex, national origin, handicapping condition, or familial status of the applicant. "Discrimination" against a convicted felon is not illegal, and in fact if you don't you may find yourself in trouble as a landlord.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
Originally posted by P NW:
SB, so sorry, but my rental criteria is 5 pages long. That's a bit much to post on the forum.
...
P NW - now that BP has the fileplace where documents and other files can be uploaded, perhaps you'll consider posting your 5 page rental criteria document there ...
Ever since you posted that a few years back, I've been curious to see where I'm missing things / falling short ...
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
13y
At minimum, the tenant-applicant should have:
1) Income that is 3 times the rent
2) No eviction in the past 5 years
3) No felony in the past 5 years
BK may be acceptable and tenant may need to put more $$$
We go with a POINT system where they can increase their points if...
1) they can show they pay their utility bills on time (because if they are willing to miss or be late with their water bill, there's a good chance they are willing to be late on the rent too)
2) they have stable employment (1 year, or preferably 5 years or more)
3) their income is not based on seasonal or unstable sources (e.g., commissions, child support, cutting the grass, shoveling snow, etc)
4) low debts (except mortgage)
5) if they submit our requirements readily or they are easy to work with, they get additional points
The applicant with the highest points while meeting the above minimum gets the house. Of course we verify their employment and rental histories. We run credit, criminal and eviction checks.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
12y
Do you all impose a "hard" rule on income, what I mean is, the rent being at least a certain percentage of after tax income? If so what's the number you use?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
Monthly gross income of at least 3 time the monthly is quite common. Some require at least 4 times, but that reduces the number of renters that can qualify. And some will go to as low as 2 times - usually when all utilities are included in the rent, so that the tenant does not have to pay those utility bills separately.
I use 3 times, and will go to 2.5 times under certain circumstances, such as: low or no monthly debt payments, or previously the tenant had paid that much rent with former landlord and has not had an income reduction.