Rental Property Investor · Knoxville, TN · Member since 2014 · 22 posts · 3 votes
Hello,
I've recently received two separate prospect applications for rent that show they don't qualify on their own income per my policy. All else is good. The difference with these prospects are that they have 2+ years cash in their bank account. I can obviously take the full year rent (scenario 1) or ask for 1st mo rent + last 2 mo rent (scenario 2). Either way, they have the money sitting in bank without their separated spouse on the statement.
The concern is if they took the cash from a joint account and put in new account with just their name on it, a court may rule that some/all of it needs to go back during the divorce.
1. What would happen to me if court rules for tenant to payback X spouse while they are living in rental?
2. Am I allowed to ask for a signed document from attorney/X spouse stating spouse is allowed those specified monies?
3. Are there any Financial risks for me given the 2 scenarios I mentioned above? (Not worried about how their divorce can be nasty.)
4. Are there standard recommendations in this scenario?
I've recently received two separate prospect applications for rent that show they don't qualify on their own income per my policy. All else is good. The difference with these prospects are that they have 2+ years cash in their bank account. I can obviously take the full year rent (scenario 1) or ask for 1st mo rent + last 2 mo rent (scenario 2). Either way, they have the money sitting in bank without their separated spouse on the statement.
The concern is if they took the cash from a joint account and put in new account with just their name on it, a court may rule that some/all of it needs to go back during the divorce.
1. What would happen to me if court rules for tenant to payback X spouse while they are living in rental?
2. Am I allowed to ask for a signed document from attorney/X spouse stating spouse is allowed those specified monies?
3. Are there any Financial risks for me given the 2 scenarios I mentioned above? (Not worried about how their divorce can be nasty.)
4. Are there standard recommendations in this scenario?
Thanks for all your help.
Best,
Thomas
When you start working to make tenants qualify - just deny them. If your criteria says that each adult must qualify on their own, and these guys don't, then you deny.
Plus, whenever you can legally deny anyone going through a divorce or just freshly out of one, it's the thing to do. They almost always break their leases and the ex can come around and cause drama. They're just a hot mess.