Is this just the beginning of the crazy train?! Opinions please

Is this just the beginning of the crazy train?! Opinions please

Investor · Wilmington, NC · Member since 2016 · 11 posts · 9 votes

Without writing a full on book about this, just listed a property, currently listed for a little more than a week with all right interest on Zillow etc...first round of viewings went well with lots of compliments on the house.  A few took applications.  The last folks of the day start out the conversation in the garage before even seeing the house with - are you opposed to a multiple year lease/would you consider a lower price for this?  I told them that I wouldn't change the price, but would consider adding the lawn maintenance for a 2 or 3 year lease.  The Mrs. loves that idea....

They love the house, take applications and let me know that they have a few more houses to look at and will get back to me.  I explain the process for moving forward - credit/criminal/income verification etc...within about a half hour, they are calling asking about where to drop off applications.  After reading through, they look pretty good and pass everything pertinent on the checks, and I send them an email that I'm ready to move forward and can collect deposit and once that clears the bank that I will take it off the market, and did they want to do a 2 or 3 year lease with the landscaping included as we had discussed.

I get a voicemail stating that they would like to move forward, but only a one year lease, maybe a second year option and when can I get the deposit to you?  At this point, I change from speaking on the phone with them to exclusively by email, so to have records of what was communicated.  I explain that I was confused by the sudden shrinking of the lease term and if they could explain.  

They reply that since I wouldn't come down on the price, that they didn't see the advantage to them of doing multiple years since they are new to the area and want to be sure they like it before committing to an extended period of time.  

I told them that I understand their thinking, but my concession was to add the landscaping and explained that on a 1 year lease this will not be possible, but I could assist them finding a lawn service if they didn't want to do the work themselves.  Since it was after banking hours on a Saturday, that they should consider the options and get back to me on Monday, and we would take it from there.  

Monday morning comes and I get the email stating that they were going to pursue a different property, but thank you and sorry for any inconvenience.  Then last night (about 13 hrs later) I get another email from them saying that they have changed their minds, and now want to move forward if the home hasn't been leased yet.

I haven't responded back yet...my issues are

- Kinda feel like they were going for the old bait and switch hoping that I would add the landscaping onto the 1 year lease.

- If the not having the landscaping included was a deal breaker is this a sign of future actions?  My worry isn't so much about the rent being paid and paid on time, but the headache factor...

They scored 804 on smartmove, no outstanding CC balances/0 missed payments, no evictions, no disqualifying criminal history (just a speeding ticket).... 

With the listing being so new still, would you just be patient and move on from them to the next prospects or is a bird in hand better than 2 in the bush, as none of the other prospects have returned applications.

Thank you in advance for any wisdom!!

0Reply
24 views

Most Popular Reply

Sam J MrofczaPro Member
Villa Park, IL · Member since 2015 · 15 posts · 9 votes
10y

Scott  I could write a book and take the next hour or so on my response as I am dealing with a tough tenant these days in one of my properties but I'll save the horror story for another time.  After reading over your situation it looks like you have checked all the appropriate boxes (Smartmove, Criminal etc) except for one very important one, References my good man.

I learned two very valuable lessons while dealing with this current tenant of mine;

  1. Always get and check references, if they say they don't have any from a previous landlord, then ask if you can contact their employer, or check facebook, linkedin any other place you think you can find some more info that will allow you to better asses them as a prospective tenant.    
  2. Trust your gut.  If something seems off then I would say just move on, if you bought in the right area there will always be a need for your property.  In hindsight letting my property sit empty for a month or even 2 would have been well worth it.  There are many posts and blogs here about rental screening and why its better to have no tenant than a bad tenant.   

Good Luck  

Sam 

See this reply in the discussion

11 Replies

Jump to latestLatest
  • Sam J MrofczaPro Member
    Villa Park, IL · Member since 2015 · 15 posts · 9 votes
    10y

    Scott  I could write a book and take the next hour or so on my response as I am dealing with a tough tenant these days in one of my properties but I'll save the horror story for another time.  After reading over your situation it looks like you have checked all the appropriate boxes (Smartmove, Criminal etc) except for one very important one, References my good man.

    I learned two very valuable lessons while dealing with this current tenant of mine;

    1. Always get and check references, if they say they don't have any from a previous landlord, then ask if you can contact their employer, or check facebook, linkedin any other place you think you can find some more info that will allow you to better asses them as a prospective tenant.    
    2. Trust your gut.  If something seems off then I would say just move on, if you bought in the right area there will always be a need for your property.  In hindsight letting my property sit empty for a month or even 2 would have been well worth it.  There are many posts and blogs here about rental screening and why its better to have no tenant than a bad tenant.   

    Good Luck  

    Sam 

  • Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    10y

    Sounds like they are just negotiating between your property and another. Certainly nothing wrong with negotiating.

    In the future I would refrain from giving concessions so easily. You want to set you price based on value of the unit and the market. When you give your position up so easily, it shows that you may not have fully committed to your price and you would be willing to give up more. Additionally it puts you in weird positions like this. Be firm and people will fall in line.

    fully qualified family who only seems to be trying to get the best deal possible. I don't think you could ask for a better tenant

  • Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
    10y

    It sounds like they were trying to get the other property owner to lower their price as well but it didn't work so they are back to you now. Honestly they sound like a lot of hassle, if they are the only good applicant after two weeks consider them but personally I might keep looking. They will want to negotiate everything if it ever comes to renewing the lease. 

  • Nathan MillerPro Member
    Property Manager · Grants Pass, OR · Member since 2009 · 429 posts · 202 votes
    10y

    @Scott Shuster - Honestly, it doesn't sound like a super strange situation.  Can you blame tenants for trying to negotiate a good deal?  I would expect no less of intelligent prospective renters.

    Over here on the left coast, anything longer than a 1 year lease is nearly unheard of, so I too am not surprised if they want to keep it to a year.  It may be different over on the right side of the country though.

    If their background checks turned up good with clean credit, criminal, and eviction and their previous rental references check out, they sound like ideal tenants to me.

  • Agent/Investor · Murphy, TX · Member since 2013 · 542 posts · 304 votes
    10y

    They've got it backwards.  I right in increases in my multi year leases.  Why would I give you a discount on something that is going to be worth more next year?

  • Investor · Wilmington, NC · Member since 2016 · 11 posts · 9 votes
    10y

    Thanks everyone for the responses...always great to hear from others point of view.  

    @Alexander Felice - point taken about holding firm. Hadn't thought of it as they were pushing to see what they could get/how far from asking price I would go.

    @Sam J Mrofcza - Exactly what I'm trying to avoid!

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    I am  reticent to take full year leases anyway, so anyone looking to bargain down for long term lease with me is running into a brick wall.  Bargaining denotes being cheap or under economic stress.  I've had some offer full years  rent in advance (cash) - - another red flag - - if they're that cash rich, why are they renting with me.

    IMO, long term tenants live month-to-month, want a stable housing and job situation, and will be happy to pay rent and stay.

  • Member since 2016 · 13k+ posts · 12k+ votes
    10y

    I do not believe in anything over M2M until a tenant has proven themselves. There is a advantage for a landlord not to lock their property up long term with complete strangers. Tenants also see the freedom of M2M and once they have been there a year and everyone is happy there is absolutely no need for anything but M2M.

    All my tenants are M2M and happy where they are.

  • Investor · Massillon, OH · Member since 2015 · 266 posts · 156 votes
    10y

    I would rent to them.  It was just negotiations. They probably thought the landscape  was a good deal when talking to you. Then later thought about the deal and reconsidered. Choosing a home is a big decision for people. With being new to the area they are probably nervous 

  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    @Scott Shuster You know when I would have denied them in my head?  As soon as they asked about a multi-year lease without even seeing the house.

    Major red flag.

    My experience with applicants who are ready to negotiate or sign on the dotted line without even seeing if their stuff will fit in the apartment, or look at how big the closets are or what kind of stove it had or if it has a shower and/or tub, or where they can set up their home office, etc., etc. - those are people who are ready to take anything.  And those aren't the kind of tenants I wanted.

    Something is really wrong with this couple.  I wouldn't be surprised if they're just looking for the cheapest short term housing they can find and intend to break the lease.

    Just some things I learned the hard way.  And fortunately, like @Thomas S. I also only did M2M agreements.  But, who wants a tenant who moves out in a month, even if you just have M2M agreements?

    Really, think about it.  When they were asking about terms before seeing it, they told you loud and clear they don't care about the property, they care about the price only.  And that's weird.  It screams desperation.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.