Coral Springs, FL · Member since 2016 · 21 posts · 7 votes
I'm looking for my first tenants right now and had come to the conclusion that I wouldn't take ANYONE with an eviction, but I may break my own new rule.
I've also decided that I want long term tenants and I'm not going to be a slumlord. I've budgeted for repairs and have maintenance agreements.
Other than a CURRENT eviction, one prospective tenant appears to be rock solid so I'm wondering if people think the pluses outweigh the eviction.
Everything isn't verified yet but here's what I can see so far:
Same residence and landlord since 2000
Income is 120% of my requirement
2 FICOs (married) in 700s
Tenant lost eviction mediation - court filings show tenant stayed through hurricane repairs and frequently did own minor repairs but withheld rent because range was broken for 4 months. Tenant was allowed to stay until end of this month.
I'd like to hear what other people think? Especially if anyone has any kind of experience with this type of a situation.
Investor · Rockford, IL · Member since 2016 · 8 posts · 1 vote
10y
Also circumstances can change for even a good tenant with good credit. I had a great tenant for 7 years who changed boyfriends and then he stopped payong and had to be evicted. He was a professional deadbeat. You dont want to catch a downward spiral. The only thing i can say is that as a landlord i work with people if they are good. If they get bad i consider it my duty to other landlords to file the eviction and help someone out who checks. I work with good tenants. And a stove is cheap. Make every attempt to Talk to the landlord amd tell them you are new at this. Hear their story. You owe that to yourself. i still would say no.
Flipper · Hagerstown, MD · Member since 2015 · 51 posts · 16 votes
10y
Their range was broken for 4 months ior they withheld rent that long or both?
The company I work for has a strict no eviction policy HOWEVER in this case I would certainly look at all the factors.
Good credit score
Over income guideline
Verifiable references (?)
Seems to me they didn't know the proper recourse (escrow in court) to take care of the issues with repairs.
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
10y
Read his post people. This is all about an eviction he found from sometime BEFORE THE MILLENIUM. The previous landlord he did talk to and that landlord confirmed a sixteen year straight history of rent receiving bliss.
Anybody who wouldn't rent to this tenant is frankly a fool when it comes to applicant screening. Even in the credit industry we forgive mistakes after 7 or 10 years. Sheesh!
Investor · Rochester, NY · Member since 2016 · 477 posts · 426 votes
10y
Two things to keep in mind:
1. This may be an uncomfortable truth, but there are some absolutely terrible landlords out there - worse than any tenant you've ever had. In a previous life, I was living in an apartment when the building caught fire. The landlord kept my security deposit, along with the rent I had paid for that month (the fire was early in the month) even though the unit was unable to be lived in. I was also (in my ignorance) talked into leaving the utilities in my name for the repair crews to come in and fix everything, because repairs would only take a couple of weeks. Three months later, I still didn't have an apartment, or any of my money back. And you guessed it: he kept the money I paid in utilities too. When I took him to court (which was 2 hours away, where he lived, of course) I walked into a small-town multi-use room setup as a court. There were three people there besides me: a deputy, the judge, and my landlord, who were chatting like the old friends they were. Needless to say, I lost on all counts, including the utility bill. This was over a year later at this point because of his stall tactics, and I just gave up. I was a perfect tenant: never late, no complaints, no maintenance requests, and I took care of the place.
2. Tempers flare and people do stupid things - this eviction sounds like one of those situations. It might even be a situation of a good tenant and a bad landlord. People are probably upset enough in this conversation that they might find themselves doing something they later regret, so what might happen if you paid rent for an unlivable apartment, or fixed things out of pocket, etc.?
If there was ever a case where I would consider renting to someone with a recent eviction, this is it. That said...I'm still not sure what I would do. 5, 10 or 15 year old evictions are one thing....ongoing? I'm not sure.
Coral Springs, FL · Member since 2016 · 21 posts · 7 votes
10y
@JR T. - It sounds like you're thinking more like I am. There are factors that can reduce the risk more than the eviction increases it.
I was worried that I'm over-doing my screening, and I may be. I've found this information before doing a background check, and for that reason, I wasn't clear about the technical outcome... The tenant wasn't actually evicted - the judge required mediation where the tenant agreed to leave at the end of this month. It sounds to me more like a landlord that got comfortable with a long term tenant and fell asleep at the switch.
I guess the reason I asked about this is because there are so many negative guidelines for who to rent to - and that's generally reasonable and natural - but no metrics to measure the positive value. It seems challenging to get started as a landlord. Everyone has something undesirable so far. Nobody has come close to a 700 FICO, long term tenant, extra income (and even a consistent voter).
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
10y
Landlording is the business of time. Every day that goes by is a day of rent gone forever. If I had a tenant that came in over my qualifications ready to go I'd be over the moon. What you're experiencing is what I and other landlords go through all the time. It's hard to find perfectly qualified tenants because those customers want the amenities they get from larger community living. You've got a keeper there I wouldn't let them get away to another landlord. Thanks for starting such a spirited thread on BP. Was a fun discussion.
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
10y
I have a long term tenant that had an eviction filed against her prior to renting from me. She moved out before the court date. The property is in a Class C/D area and not easy to find decent tenants. She gave me her landlord's contact info, I verified it by the tax records, and had a good conversation with him. Their stories basically matched ;) The problem was caused by her job loss and extended unemployment.
The landlord confirmed that she was a good tenant while she was working, and she was working again when she applied for my property. I took the chance and it has worked out for almost 4 years now.
I've evicted tenants myself who couldn't/wouldn't pay the rent and wouldn't voluntarily leave. I've had others that lost their jobs and asked if they could break the lease. You can't predict how someone will behave if their life goes off the rails unless there's a long history of it.
If a property is difficult to rent, you often have to consider tenants you might otherwise dismiss immediately. What is your tenant pool like?
Coral Springs, FL · Member since 2016 · 21 posts · 7 votes
10y
@Aly W. It's still early and hard to say what I have to pick from. So far, I've gotten a lot of (real) scammers and past evictions but I'm just getting started. My advertising didn't propagate like I expected and I started late in the month. Right now I'm probably more worried about short term since I had to put way more into the property than expected and I'm getting cash squeezed. I'd rather push some risk down the road a bit although I'm really feeling like this tenant is much lower risk than most other prospects.
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
10y
I know how it feels to have a vacancy when you're cash squeezed - been there! I'm sorry, it's never a pleasant time finding a tenant. We have rentals in Ft. Lauderdale and use craigslist, Postlets, Hotpads, and every other site they propagate to.
Sometimes it just takes time. Waiting is easier said than done ;)
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
@Jeffrey Duck I would never recommend renting to someone with an eviction. I am sure they have a good story, because there is ALWAYS a reason why it isn't their fault. The judge agreed with the landlord, so case closed. Move on or you will regret it later.
Investor · San Diego, CA · Member since 2013 · 19 posts · 16 votes
10y
My general rule is no evictions, period. Though I know some folks who do allow for people with evictions, but they charge double or triple deposit, and generally that is acceptable to the tenant as a cost of doing business.
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
10y
@Jeffrey Duck I don't get it. You have a tenant who exceeds your income expectations and has a 700 FICO. You should have called them today and asked them whether they wanted their lease to start today or tomorrow?
@joe Your shortsightedness costs you money all the time, guaranteed and you don't even see it.
Investor · Saint Louis, MO · Member since 2015 · 25 posts · 11 votes
10y
I'm going to have to disagree with most responses. I look at each applicant separately. In general I don't like any recent evictions (i.e. within the last 2-3 years). If a person had an eviction and it was years ago but since then they've rented from someone else and I can get a good landlord reference, I will consider them especially if they have a solid income and credit report. Look at other items on the credit report to get an idea of whether or not this person pays bills on time. I wouldn't flat out say 'NO' without evaluating the entire picture. Make certain to verify all things before making a decision.
Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
10y
The problem is that a landlord that is having difficulties with a bad tenant will give the most glowing reference if they have a chance of getting rid of them.
Think about it for a minute, you have a tenant, they are always late paying, they owe part of last month, and a new landlord phones up asking for a reference.
Landlords on this forum have made it clear with the cash for keys threads, that they will go down the route that keeps them financially safer. In a heart beat, they will lie to you on the phone if they can get shot of a bad tenant.
The problem is that a landlord that is having difficulties with a bad tenant will give the most glowing reference if they have a chance of getting rid of them.
Think about it for a minute, you have a tenant, they are always late paying, they owe part of last month, and a new landlord phones up asking for a reference.
Plus, you can just give out your friend Bob's phone number and ask him to pretend like your landlord. References are completely useless.
Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
10y
The absence of evictions are one our top criteria when screening potential tenants, second in importance only to sufficient verifiable income. In general, we disregard evictions that are more than five years old. More recent than that, we look to see what the underlying cause was and if the circumstances have changed. We did approve a tenant with a ~3 year old eviction. Her explanation was that she was a student at the time with limited income and couldn't afford her rent. She had since graduated and had sufficient verifiable income and approved her.
If a similarly qualified tenant without an eviction had also applied then we would have chosen the tenant with the cleaner record, but it wasn't an automatic deal breaker for us and she's worked out just fine. Your screening criteria should be strict to protect yourself, but criteria that are too strict will leave you without any qualified tenants too. You can never completely insulate yourself from risk but you need to do your best to balance it.
I can see why you'd want to pass on this tenant though. Escrowing rent money through the courts show that he's more litigious than average and you may not want to deal with that. It'll also depend on the area you're in too as nicer areas will have more qualified applicants without blemishes on their record.
Investor · Mountain View, CA · Member since 2014 · 120 posts · 51 votes
10y
I tend to side with everyone who's said no to Tenants with an eviction notice. Regardless of right or wrong, I see it more as an inability to communicate which is a red flag for me. It really depends on your tolerance for this kind of thing. My preference tends to be tenants that ring all the bells and low trouble. Even when people look great on paper, they can still fall into bad times.
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y
I will also throw my vote in to say no to these tenants - based on the problem that you will then have to accept tenants in the future with evictions. Your criteria will become too murky and complicated.
I'm sure you are a kind person, and feel for these people. I would, too. But, you are running a business, in which renting to them could put you in a bad financial position long-term. So, you can't rent to them.
You aren't a charity. You run a for-profit business. This is your mantra. Repeat it.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
10y
I think you are rationalizing accepting the tenant with the eviction because you really want to get your unit filled. I suggest you lower the price and rent to a better qualified tenant.