Vetting H-1B contract worker with no credit history as tenant?

4 Replies

There's a lot of Indian H-1B workers here, and I've rented to them before and they've been fine (except for the couple who walked above our heads VERY heavily). But this applicant just got here and even has no SS# yet. Any advice on how to do the usual due diligence with no credit history? He can provide plenty of employment documentation.

You really can't do normal due diligence in these circumstances. Either rely on your gut instinct or just pass on the deal. Keep in mind that while politically I may not really be in favor of H-1B workers, they know they are on an incredibly short leash. If you can get income verification from their employer, then they are probably golden. If they lose their employment, they get deported so they are generally not going to cause any problems. Keep in mind that the US government has already done a background check on them prior to allowing them to a) enter the country and b) get a work visa. Not a huge supporter of the government in many ways but if they didn't find a reason to deny them a work visa, do you really think that any amount of research you have the resources to do will come up with a more accurate result? If so, I would think you are totally fooling yourself.

I've rented one of my Bay Area rentals to an H1B engineer who works at Apple. He did not have any credit to check but very high income and professional career at a major local employer was enough  for me. They have been ideal tenants.

I've not dealt with H-1B but we do have a tenant in place that had no credit history. We had a family member co=sign and accepted 6 months rent in advance. He has been a great tenant. In fact we just collected the rent for the next 6 months in advance.

Originally posted by @Bill Hamilton :

You really can't do normal due diligence in these circumstances. Either rely on your gut instinct or just pass on the deal. Keep in mind that while politically I may not really be in favor of H-1B workers, they know they are on an incredibly short leash. If you can get income verification from their employer, then they are probably golden. If they lose their employment, they get deported so they are generally not going to cause any problems. Keep in mind that the US government has already done a background check on them prior to allowing them to a) enter the country and b) get a work visa. Not a huge supporter of the government in many ways but if they didn't find a reason to deny them a work visa, do you really think that any amount of research you have the resources to do will come up with a more accurate result? If so, I would think you are totally fooling yourself.

 Everything you say makes perfect sense. Thanks.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here