Renting out to someone who is has deliquencies possible eviction
Yet to run the rental history, but the prospective tenant has acknowledged in my pre-screen check list that he (and his wife) have fallen behind on a rent previously. He says, they did end up paying up the balance. Not sure yet if they were ever evicted. I will be asking if there were evicted, but wanted to get some input from BP first.
The easy answer is to move on. I would if I had another great set of tenants to take the place. I have a few options but everyone seems to have some issue of the other such as poor credit score, etc. So if I even considered letting out to this tenant, what should I ask for and what other criteria (assuming I am already ok with the delinquencies and evictions) should I look for? I am not trying to do them a favor, but I also understand that anyone can endure a hardship. What else should I look for to approve them? For example, is there a suggested rent percentage increase? Is there a suggested number of months of upfront rent/deposit payments? Is there a new minimum gross income calculation? Etc.
Any help is appreciated.
Most Popular Reply
Senthil. If you are the Landlord - the criteria for additional Deposit is whatever you find acceptable. I would suggest you consider minimum 2 Months Deposit or MORE if Tenant has monies. From my experience as a Property Manager in Austin, if you asked for Increased Deposit - the bad tenants will GO AWAY. If you have someone sincerely trying to clean up their act and has funds they will not balk at the Increased Deposit. Had A Client once ask for 5 Months Deposit on a 2-year Lease, and got it it! The Agreement was if Tenants paid on time for first 6 months, Landlord would credit one of the additional Months Deposit for Month 7 of the rent, and after 12-Months of good rental History - Landlord would credit another months deposit for Month 13. If tenant's credit report shows a consistent pattern of late Payments to other creditors - you can expect they will attempt the same with you. Good Screening is the an aid to good tenants - but certainly NOT FOOLPROOF!
If you have to Evict, expect it to take about 60 days (court timing, delays, etc) - if Tenant doesn't contest. If Tenant Contests - it could take an indeterminate period of time. Reality is once you receive the eviction approval from the Justice Of Peace - very few tenants will contest the Eviction further as tenant has to Post One Month rent as a Deposit to proceed, so you would receive the Additional Monies at end of the process.
Bottomline: Better to Screen them out - than evict them later.