Investor · Charleston, SC · Member since 2014 · 14 posts · 5 votes
Hello,
I am a relatively new landlord and would appreciate the input of more experienced landlords. I just finished renovating a very nice 1950s house in Charleston, SC and am interviewing tenants. I love the house and would like tenants who will take care of it. Right now I have the below options:
Option #1 Thee young male firefighters, no pets.
Option #2 Two young women, one a nurse practitioner and the other roommate/friend moving into town. One wiener dog whom they will bring for me to meet. The other is a "small lab" who will not be in town at the time of the showing.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
10y
Run background checks and verify all of their income. Once you do that you should clear the field a bit and be able to choose the most qualified applicant a lot easier.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
10y
Originally posted by @Account Closed:
I better do some reading about the most qualified. But with all else being equal, can't I choose which one might do less damage to my house?
Sure. Put a line on your application asking your potential tenants if they plan on damaging the house. Leave space for them to expand on their answer. Then you will be able to judge the answers if anyone applies.
As has been stated before, the reading you should do is about the anti discrimination in housing laws. Do this now before a HUD official tests you and you are heavily fined.
Investor · Charleston, SC · Member since 2014 · 14 posts · 5 votes
10y
It occurs to me that I have given the wrong impression with this post. Just for clarification, my last two tenants in a different house had kids and pets and one was a nontraditional couple. It was really about who would best take care of the house I just lovingly restored.
Investor · Cincinnati, OH · Member since 2014 · 61 posts · 35 votes
10y
What everyone else has been emphasizing is that it's illegal to make a decision on tenancy based on family status; that can't be a component of who you decide will "best take care of your house," but it appears to be the only factor you're considering based on your original post.
Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
10y
@Account Closed
I think what people are trying to get across is that you must have your qualifications and they should be written down. This is the the tenant you will or will not accept and that is it, no interpretation. Could be based on income, criminal history, rental history etc. Once you have those qualifications DO NOT deviate from them, when you have a rental property you do not have the luxury of picking and choosing and possibly violating tenants rights that they have been afforded by the government protection agencies.
One thing to remember is that you may own the structure that someone lives in, but when you become a landlord you MUST abide by laws that govern the business that runs inside of your structure, most people never take the time to learn these and that is why so many people are sued being landlords. Before you get involved in this business learn the laws of what you can and can not do and make sure you follow them.
When you have a situation of several potential tenants it should not that you have to ask around, that is how you can get in trouble. You should have your qualifications of what you will and will not accept and in my opinion the first one that fits those qualifications and turns in a full packet, then should be accepted and processed.
Just make sure you stick to those policies because there are many agencies out there that are watching to make sure you do not violate tenant rights, and saying I am new and did not know is not an excuse for the law.
Investor · Charleston, SC · Member since 2014 · 14 posts · 5 votes
10y
Thanks Steve and everyone, very helpful. Believe me I get it now. It does seem to me though, other than the management companies most people are not doing a methodical interview process. After this discussion, I will be developing a process of my own. I am aware of the laws, but did not anticipate that there would be such a reaction to this post. I'm glad there was. Lessons learned.
Looking back, I recall a woman stopping by inquiring about the house while I was working on it. She was an intelligent, knowledgeable, assertive minority woman with a family. And she was very methodical in her questions to me. I don't know if she was a government agent, but it was clear that I was being interviewed and she was familiar with being at tenant. It was like we were playing chess. I gave all the right answers, was friendly. I was not "taking applications" at that time because the house was not ready, but I was intentionally accommodating and gave her my info.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
A suggestion: I have a requirements handout I give to anyone looking at a rental. It includes some of the following:
1. minimum credit score 2. criminal history policy (no felonies, no misdemeanors last 5 years) 3. eviction history policy (none allowed) 4. pet policy (with approval..none over 20 pounds) 5. security deposit requirements 6. employment history requirements 7. application fees
That is most of them I can remember without looking at the sheet. It lays out in concise terms what is expected, what is required to be approved, and what would cause a denial of application.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
10y
I'd initially say the firemen, but they better understand that if they get into an argument and want to "break up," that it will not be your problem. They're ALL on the lease for the entire time even if one of them physically moves out.
Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
10y
@Account Closed I agree with most who have warned against considering these factors, but I wanted to point out that under the FHA, familial status only means that children are present in the home. So, there is nothing that would prohibit discrimination against single individuals in favor of married individuals or vice-versa. There may be a more expansive definition under state law (although I don't believe SC has one). Similarly, I am not aware of anything under federal law that would prohibit you from discriminating against someone over the age of 18 but under the age of say 30 in renting. Also, the FHA prohibitions against discrimination may not apply to you under certain circumstances (for example, if you own a small number of single-family homes and do not use a broker or agent to lease or sell the homes), although the FHA would still prohibit you from advertising that states such discrimination.
In any event, these are very technical rules and if you intend to even come close to the line, I would strongly encourage you to contact an attorney who is an expert in housing law. This is general information only, and you should really seek advice from a qualified professional based on your specific facts.
Rapid City, SD · Member since 2015 · 52 posts · 7 votes
10y
I would say choose the mom and her kid first. Only because....its a single mom and her kid. Most moms want a stable environment for their child and don't really want to be moving every year or so.
Second I would choose the two nursing students with the dogs. Yes the dogs are going to be a hassle moving forward, however being a nursing student you aren't going to have much time do anything else except study and sleep. And women tend to keep a cleaner home then most men do.
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
10y
Until one of your Options pays the application fee and turns in any forms required, you don't have an applicant. The first one to pay the fee, turn in paperwork and meets your qualifications and passes a background check should get the place. The others should be placed on a waiting list with no money provided to you. If you charged an application fee then why did you take it from 2 of them? I would return the fee as they should not been looked at until the first one was rejected. First Come, First Served in my book.
Below is one selection form I found online and modified. I have yet to use this to screen a tenant, I didn't screen my first tenant well. Although I got lucky with my tenants, I did learn my screening wasn't adequate which I kind of new but was too worried about getting my house rented out the first time (my fault). Since then I developed my process from this one and must have a certain score to be qualified.
Number of positive (yes) responses to above criteria selection
Hales Corners, WI · Member since 2013 · 229 posts · 80 votes
10y
I have a question, could a person's leasing requirements vary from property to property? I believe they can. So, a freshly remodeled property may have a "no dogs" rule, whereas an older property may allow dogs. I don't believe you have to be consistent across properties, but for each property your standards must be applied consistently.
I might put a "no dogs" rule on a nicer place.
Also, beware of getting too in love with your property -- some damage will always occur -- and it's something to be prepared for as a part of doing the business. By all means, do everything you legally can to lower your risk, but be prepared for normal wear and tear for sure, and maybe a few oops moments.
Hales Corners, WI · Member since 2013 · 229 posts · 80 votes
10y
I would think that the firefighters would be working *all the time* and not in the property much, but what do I know? I would also think that fire fighters are taught very well how to respect, maintain and care for their equipment on the job, so some of that might transfer into respect and general care for your property.
Plus.. firefighters! Who doesn't like firefighters? :)
Investor · Charleston, SC · Member since 2014 · 14 posts · 5 votes
10y
Thanks again for the input. These are people who have contacted me and requested to see the property. I am really early on in the process. I posted just to get input from the community about the thought process when choosing tenants. Hopefully I will interview two sets today then send them an application. Next time I will send the application ahead of time and be more prepared. If I were flooded with requests, I would have been more likely to screen more vigorously ahead of time, but it's the slow season and I am trying for a higher rent. On the other hand, I value the interview as a screening process. In my other job, I interview people all day long and can tell a lot from a face to face meeting. My other tenants have been word of mouth, so there was no application process.
Investor · Charleston, SC · Member since 2014 · 14 posts · 5 votes
10y
Love the post Karen!! Yes, that was my thought too that they would be polite and well mannered, and not start a fire in the kitchen. I have not asked if they are in the local firefighter calendar. Can I put that on the application? :)
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
10y
Like someone just mentioned, unless someone gives you a *completed* application *and* the fee, you don't have anything to run.
For instance, I had a lady give me the application fee and the application, but some questions were unanswered and she did not provide proof of income with it. So I did not run the application. I run the first complete application to include supporting documents such as income statements, copy of license/ID, and copy of SSN card.
Investor · Charleston, SC · Member since 2014 · 14 posts · 5 votes
10y
Also, one of my concerns about the single women was that if they have boyfriends, then there would essentially be up to 4 people staying there. Not going to happen with a couple. And probably not with firefighters.
On another note, is it discriminatory not to offer the application to everyone?