I am managing a property in a Class C area for the first time; my other places are in nicer areas.
So one of the things I have encountered is maybe 10% of the calls are from people who sound quite desperate and mention they have to move as soon as possible.
I never got too far with any of those callers. But I was curious from those more experienced in these areas: what are the most common reasons these people are so desperate?
10% sounds like a low estimate to me.
1) They are behind on rent at their current place, have abandoned any idea of catching up on their rent there, and want to move before court eviction.
2) They are living with someone else (family, friends, roommates, strangers, soon-to-be ex,) don't like their living situation very much, and desperately want to move. Some lower-income applicants are living in overcrowded situations when they apply.
3) They are living with someone out of town (or far from their job) and they want to move somewhere closer to work.
The people who want to move "right now" put up a red flag for me, but it's merely a flag and not a stop sign. As long as they check out otherwise, I will rent to them. Prior evictions are the biggest red flag to me.
Some people are living in untenable situations and want to move immediately. Others simply speak with a lot of hyperbole and make the situation seem more urgent than it really is because they think that will make the landlord understand they are serious about renting the unit. Others simply speak that way on an everyday basis.
Renting to that constituency may be disconcerting to you if you don't have life experience with people from those neighborhoods. You may have difficulty understanding nuances in speech and body language, and vice versa, and that may lead to misunderstandings on both sides. And if you're accustomed to requiring 3x or 3.5x income to rent, you may have to lower that somewhat -- but maybe not.
Mostly, I've found if you do your due diligence with screening, everything should go fine. Don't give in to pressure to rush your process because an applicant keeps reminding you how quickly they need to move. That same person, when you call her a week later to inform her you will let her move in, will then tell you she's changed her mind and is staying where she is. Let your process dictate which applicant gets the unit, not who says they have the most pressing reason to move immediately.
10% sounds like a low estimate to me.
1) They are behind on rent at their current place, have abandoned any idea of catching up on their rent there, and want to move before court eviction.
2) They are living with someone else (family, friends, roommates, strangers, soon-to-be ex,) don't like their living situation very much, and desperately want to move. Some lower-income applicants are living in overcrowded situations when they apply.
3) They are living with someone out of town (or far from their job) and they want to move somewhere closer to work.
The people who want to move "right now" put up a red flag for me, but it's merely a flag and not a stop sign. As long as they check out otherwise, I will rent to them. Prior evictions are the biggest red flag to me.
Some people are living in untenable situations and want to move immediately. Others simply speak with a lot of hyperbole and make the situation seem more urgent than it really is because they think that will make the landlord understand they are serious about renting the unit. Others simply speak that way on an everyday basis.
Renting to that constituency may be disconcerting to you if you don't have life experience with people from those neighborhoods. You may have difficulty understanding nuances in speech and body language, and vice versa, and that may lead to misunderstandings on both sides. And if you're accustomed to requiring 3x or 3.5x income to rent, you may have to lower that somewhat -- but maybe not.
Mostly, I've found if you do your due diligence with screening, everything should go fine. Don't give in to pressure to rush your process because an applicant keeps reminding you how quickly they need to move. That same person, when you call her a week later to inform her you will let her move in, will then tell you she's changed her mind and is staying where she is. Let your process dictate which applicant gets the unit, not who says they have the most pressing reason to move immediately.
Excellent piece by Randy E.
Well said @Randy E.. I have encountered all of these in our two Class C/D rentals. Also add that there are applicants living in welfare motels or temporary shelters that are desperate to get out, or those with Section 8 vouchers that are set to expire.
And you are exactly right! Been here too.
"Don't give in to pressure to rush your process because an applicant keeps reminding you how quickly they need to move. That same person, when you call her a week later to inform her you will let her move in, will then tell you she's changed her mind and is staying where she is."
My experience with "I need to move right away" was a guy who'd been fighting with his girlfriend. He left their house and had been staying with a friend for a few days while things cooled off. But then the girlfriend went over to his friend's house and caused a huge ruckus there with police, etc. Friend's wife said "no drama at my house, you need to leave." So the guy was staying in a hotel for a few days, but that was going to get expensive. Got all this in the first 2 minutes of the phone conversation.
Warning flags went off for me, but it sounded like this guy was wanting/needing a clean break from this woman and he was determined to end it. Told me he had no intention of telling her where he was moving, so he didn't think he'd have the same drama.
Otherwise, the guy checked out perfect. Perfect background check, more than adequate income, nice guy, said he hated drugs and was hoping the neighbors don't smoke or grow. Very nice guy. Pulled at my emotions a bit because I've been in in a destructive relationship that I needed to get out of in a hurry as well at one point in my life.
First two months go very well. Third month, rent is late. Excuse - I had to help my girlfriend with her rent. Eyeroll from me. I'm thinking he's already got a new lady or something, but he expands and it's clear that he's on again/off again with the original girlfriend and still feels financially obligated to help her out. OK. Whatever. We discuss that, in my mind, my rent comes first, then the girlfriend's. He agrees.
Fourth month, rent is late again. Said he forgot, he's been busy. Pays the late fee, no problem.
Fifth month, rent is late. No return phone calls, emails or texts. I go to the unit, it's cleaned out. Left spotless, no damage, all is good. He finally returns an email saying that he's moved back in with his girlfriend. I tell him that he's broken the lease and there are fees for that. He sends me a check.
3 weeks later, place is rented again.
Moving right away can be an issue. I would check with the current landlord and verify that what you get is truly the current landlord. I would second some of the reasons above. Someone who knows they are going to get evicted, who doesn't like their landlord, who just feels like moving (maybe their place has gotten too dirty and they want to move).
who just feels like moving (maybe their place has gotten too dirty and they want to move).
I've had that before. Some low-income applicants live in properties run by slum lords. These are dirty, dirty properties that haven't been updated in decades, and haven't seen simple repairs in years. They might have broken windows, holes in the floor, wall and/or ceilings, electrical outlets (or even entire rooms) that don't work, "slow" plumbing, doors with broken hinges or hardware, stoves with only one or two working elements, or any other problems you can imagine.
When someone living in a situation like that sees one of my properties in the same neighborhood, moving into my property becomes the most important thing in their lives at that moment -- or at least that's the way it seems to me.
Owning properties in C or D class neighborhoods isn't a problem. Owning a D class property is a problem. I like to think I have B class properties, no matter what type of neighborhood they might be in. A good clean house in a C-minus neighborhood will attract the best tenants that neighborhood has to offer. Sometimes, it even attracts tenants from better neighborhoods whose current homes aren't as nicely appointed as my property. That works for me.
Also add that there are applicants living in welfare motels or temporary shelters that are desperate to get out, or those with Section 8 vouchers that are set to expire.
Forgot about those. Yep, those are two other recurring reasons for wanting to move immediately.
Owning properties in C or D class neighborhoods isn't a problem. Owning a D class property is a problem. I like to think I have B class properties, no matter what type of neighborhood they might be in. A good clean house in a C-minus neighborhood will attract the best tenants that neighborhood has to offer. Sometimes, it even attracts tenants from better neighborhoods whose current homes aren't as nicely appointed as my property. That works for me.
Right again. Our properties in that area are well taken care of, and we have very good tenants too.