I have a house for rent at $995 per month. A woman called me and said that her family gets a guaranteed income from their Indian Tribe (casino money) of $2000 per month. Also her husband is going through trucking school and will make plenty of money once he graduates and starts his new job, already lined up.
She also said that she can set it up so that the tribe pays us rent directly each month, then she gets the left over. I would verify all of this, of course. I would also do all the normal background checks.
I know that the $2000 per month isn't anywhere near the 3x rent requirement, but we would get paid first. Then, in a couple of months her husband will be making good money, which would definitely put them over the 3x requirement.
Anyone have this type of situation come up? I would love any feedback on this.
Is the $2000/month their only income currently? How long is trucking school?
What is their rental history?
Would you rent to a family who only makes $24,000 income per year?
Casinos are just like jobs, they falter when the economy starts to sour.
If you decide to do it, please verify everything and get your first month and security deposit first before letting them move in. The key is here to protect yourself if you are going to move forward with this. Also, make sure the assignment of income is irrevocable for a period of time so they don't double back and cut you out of being first in line.
Be very careful of fair housing laws. You need to make sure that you abide by them. You should not vary from your rental criteria unless you make the changes going forward. Other potential renters must be treated the same.
Some very good points. Thanks everyone.
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