Which tenant would you pick?
I have just finished remodeling a SFH rental property in San Jose area. My goal is to rent it out long term. I have 2 top prospective tenants (the rest are screened out).
#1: Section 8 tenant approved for 5 rooms. Mexican lady in her early 40, which her husband also early 40, 4 kids, 1 grand kids, and 2 foster children. Her current landlord passed away with no heir. She has been living rent free until the bank start to foreclose on the house.
Pro:
- She has a government jobs for 12 years
- Show proof that she has paid the landlord her share of the rent every month in the last 2 years leading up to his passing.
- She stayed at her current place for 8 years, so she is likely to stay longer
Con:
- Her current house is in a more seedy part of town.I asked to visit her house (I want to see how clean she lives), and she seems a bit uneasy about letting me come right away & asked to schedule a time. I'm a bit worry that she won't keep the house in good sharp
- Many kids, which will add wear & tear to the house.
- She might have 1 or 2 adult children living with her as well
- She has one eviction back in 2004. I credit her for being honest, as this should have been gone from her record.
- She has petty thief conviction when she's 18 or 19.
#2: Non-section 8. Asian girl looking for rent for her extended family. 3 sisters, 1 brother in law, 3 older ladies (mother, aunts), and 1 nephew.
Pro:
- 3.5 adults income (4, but one of her sister has minimum wage job)
- We saw that she keep her current house pretty clean.
Con:
- If they happened to split up, each one of them won't have enough income to pay rent.
- Since they pay by themselves, it's probably a bit harder to raise rent in the future.
We are aware that we not suppose to discriminate base on rate, and we don't. We only include the renter's rate to give you a complete picture. What do you think? Which one would be the better tenant? Thank you.