I've seen a handful of conversations on here in regards to renting to doctors, lawyers, "professional tenants", but haven't seen this topic before: Would you rent to a fellow real estate investor? Someone that either currently owns investment RE (irrespective of location), and/or that is actively engaged in the pursuit of more REI (in this case, buying in your market). For the purpose of this conversation, would you make a distinction between someone who is otherwise-involved in the industry (e.g. Property management, wholesaling, RE agent), and assuming otherwise that they qualify on your basic criteria of credit and income.
I would, yes. Could be good rapport and an understanding of each other. Especially if they have buy and hold properties, you understand their income.
Also could do business together...
Legally, I doubt you could make a case for not renting to him or her on the basis of their chosen profession. I do not see a conflict of interest by renting to them. If an investor would decide to rent your property rather than own or rent their own home, I guess to each his own. Just make sure that you qualify them just like you would any other renter. Just because they are in real estate does not mean that they are financially responsible.
Disqualifying based on source of legal income = ILLEGAL ain't it? as already called out above.
Likewise, just simply knowing they're a RE Investor doesn't sway me either way. Many people throw that title around since it's NOT one of the licensed professions. For instance I know of many 're investors' whose only 'investment' in real estate has been reasearch and throwing around offers with apparently never one account of having owned, sold, wholesaled, or legally otherwise invested in real property.
In other words, it's overall a non-issue as far as qualification. What ARE issues would be stable credit, income, savings and last but not least, assets. I believe all these are legal measures of creditworthiness, no?
I am inclined to ask someone if they invest in real property how come they are looking to rent? A frequent scenario would be they own their home but cannot yet afford to own their office in our prime $500-$1000/sf commercial hotspots. Likewise another would be they are in between closings on their primary residence/commercial and prefer to rent in the interim than lodge/purchase in a hotel/storage.
What is an issue is where they conduct business as such. Ie, most residences have a no-business clause in the lease, yet most people nowadays perform some degree of their work nevertheless in the comfort of their home.
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