Real Estate Investor · Denver-metro, CO · Member since 2008 · 58 posts · 15 votes
I have a tenant applicant who had chapter 7 discharged and assessed amount paid 6 months ago. His app states it was due to problems when owning his own business. He has a union job for the past two years making well above the 3x rent, has two credit accounts (both opened since ch 7 discharged) that are paid on time, has credit score of 600. His lease is not being renewed at the current place after 2 years (rent is the same as we are asking). I have a message in for the landlord, but it is an llc (not a big complex or rental management company) so I am interested to see how forthcoming he will be.
I have read the old posts about tenants who are still going through bankruptcy, but what do you think of someone who has completed the process this recently?
Real Estate Investor · Denver-metro, CO · Member since 2008 · 58 posts · 15 votes
10y
Thanks for all of the input/conversation. I don't have a problem renting to someone who has filed for bankruptcy in the more distant past, this was just much more recent with very little new payment records. We have previously rented to someone who had gone through a bankruptcy (medical) a few years before, who had excellent work/ landlord references, and was moving into a bigger place as his girlfriend (who had excellent credit) moving in. They were great tenants for many years. This applicant ended up having too many red flags (landlord gave a positive reference but with different length of tenancy, different rent amount, impossible to verify that contact was the actual landlord due to several layers of LLCs, wife had 3 accounts with a total of 1/2 a month's rent go to collections recently).
This has been the least appealing bunch of applicants I have had (granted, only my 6th time renting one of our properties), but will keep trying. I am learning a lot from everyone's input on the forums. Thanks.
Investor · Front Royal, VA · Member since 2013 · 586 posts · 418 votes
10y
@Paul Choate you're making an emotional argument on why these people are good and deserve to be rented to. That is opposite of everything being a good landlord is about. Taking emotion out of the equation will allow you to make better financial decisions. If a tenant decides he wants to run away from his debts again, he puts my family's financial well-being in jeopardy. Where's the charity in that?
Run your business as a business and if you choose to give to charity, it should be a personal decision. The thought that landlords should be encouraged to provide irresponsible people housing is ridiculous.
I have spent a decade representing individuals in bankruptcy and spoken to thousands of people facing financial crisis. I actually know what the law is as well as the causes and consequences of filing bankruptcy. if you think I am making an emotional argument, you might review your reading comprehension skills. I have pointed out the legal and practical reasons why someone who filed bankruptcy is less of a risk to default after the filing than before. I have also strongly attacked the attitude you have that all bankruptcy is the result of personal moral failings. You do understand that is the position you are advancing, right?
As I said before, you are entitled to form whatever opinion you want in your ignorance. If you want anyone to give it any weight- you might try to back up your claims with any facts or statistics or at least some random experience to justify your blank statement that all bankruptcy filers are "irresponsible people".
I realize when your mom and dad were paying for your school and buying your first car and house, they instilled in you the belief that you are better and more deserving than all those pathetic losers who just can't seem to make it. Those people should have known they where going to get cancer, or their spouse was going to die or their job was going to end or the economy was going to collapse. Obviously, if they had had your superior intellect and wisdom, they could have avoided these simple things... Nope- still not getting the logic or reasoning behind your statements.
I will continue to dismiss your opinion and rely on the law, my actual experience and statistical analysis preformed by various governmental and educational institutions on the subject.