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Craig Smith
  • Investor
  • Wilkes Barre, PA
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Tenant Lied On Rental App. Would you Rent to them?

Craig Smith
  • Investor
  • Wilkes Barre, PA
Posted Oct 31 2015, 14:15

Question: Would you rent to someone who gave you a false contact for their current Landlord?

Background (Story): Potential Tenant looks at place, Likes it, fills out application, and wants to move right in. I call the references and check the background. All good. Last thing I do is call their current landlord. I look up the address in the local tax base and notice it is an LLC with 5 properties [all of them in the rougher parts of town]. I then call Amy (the landlord/manager?) No answer. I leave a message. An hour later I get a call back. It's Amy (from the number I called, so far so good). I ask the typical questions everything sounds good. At most they are a day or two late with the rent. blah blah blah. During this time as I ask more probing questions she starts to cough, says she has something in her throat.

Then I ask: So is the only property you own. 

Amy: ahh yeah (hmm, LLC owns 5 properties) .[hacking picks up]

Me:Oh how long? 

Amy: A couple of years. (this doesn't match the LLC records). [we are really coughing hard now]

Me: Do you have it setup in an LLC?

Amy: A What? [she is now hacking uncontrollably] I will have to call you back, can't talk.

So at this point, I'm guessing I'm being played with. So to verify I goto the other houses owned by the LLC and ask for the landlord/manager's number. 3 house I get the number. Find out it's a management company. I call Bob the contact, no answer. He say's for real estate questions call Dawn. I leave a message and call Dawn. No answer. Leave a message.

Hour or 2 later I hear from Dawn. I explain the situation and she tells me that she didn't know they moving out. That they pay on time mostly, but have been about 5 days late twice. She hasn't had any problems with them and that they were really nice. However, they haven't paid this month and they were about to post notice next week. Also that they took over management of the unit at the beginning of the year, she doesn't know of any specific problems but she hasn't ever been in the house. The city was there when they took over for the city rental inspection and that Bob had been in to fix a maintenance issue the previous month. I could call him for how clean they were. I thank her. 

Ok, Now I'm curious. Why give a false landlord contact when it wasn't that bad. (so far) They could pay the rent as my rent was $50 more then their current. They already gave 1 month rent with the application. Any if approved, the have the other 2 months in cash. 

So I call the tenant, say I know you lied, however they gave you a good recommendation so I will rent to you. I can stop by their current home (this way if it's a mess I say Sorry NO) in 15 mins for the rest of the money. 

As I'm driving there, Bob calls me. Tells me how they have destroyed the house. Holes in wall, disgusting inside. When they took over from the other management company, they did a walk through and told the owner all the work needed once they move out. Owner said let them stay, as they can't do more damage then already is. Bob then tells me how they are always late. They never pay the late fees which are in the hundreds. I thank him as I finish the conversation outside the house. 

So, the moment of truth. I don't mention Bob's call and listen the tenants story. They explain how they have been having water issues in the basement and no body wants to fix it. I go inside and the kitchen and bath are clean except the kitchen smells moldy. A drawer face is off a drawer in the kitchen. But it's clean otherwise. No bags of trash.  Bedrooms have clutter but also moving boxes. Now the basement smells like sewer, and the sheetrock walls are all covered in mold. as are the lower parts of 2 couches.  Basement stairs are off the kitchen. 

 I'm getting $50 over market rate, for a house with no OSP and Gun shots a couple of times a year a few blocks away. It's a double block with thin walls to the otherside. 

So would you rent to this person?

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