Don't let me rent to this tenant...

Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes

Please tell me I'm doing the right thing.

Right away I recognized the red flags, VERY polite and eager to move in right away. Claims her credit is fine. I even asked if she had collections from past landlords. Turns out she has a collection record just filed against her a week ago from an apartment complex (small amount of $153 but still). She also has unpaid utility and comcast bills as recent as last fall.

I'm in that winter funk where it's hard to find tenants. Sat empty in December and likely will this month too, if not next month. Super hesitant to take this person in, I feel like I will regret it. I thought about charging higher rent and a 2.5 x deposit, but just know this person will be trouble. Drives a luxury vehicle worth 60K, doesn't pay her bills....547 credit score...

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Kyle Hipp

Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes

your gut is right, walk away

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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y
Originally posted by @Jack B.:

Update. She offered to pay off the debts to the previous landlord and the utilities, pay 2.5 the deposit (per my request) and $125 more per month in rent along with a parental co-sign. I might be able to make this work for all parties. She pays me enough to cover any likely damages, higher rent as an additional buffer, parental co-sign, AND pay the people she owes money to.
You will regret renting to this tenant.
[email protected]Podcast Guest on Show #261
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Jack B.
OP
Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
9y
Originally posted by @Adrian Chu:

Glad you aren't in Seattle city limits.
Yeah, tell me about it. I avoid buying there and in other anti business/landlord regulation areas. Are you still doing the condo thing? Do you own any condos in the Seattle city limits? Any plans to do anything with your condos?
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Seth Todd
Real Estate Agent · Nashville, TN · Member since 2015 · 36 posts · 4 votes
9y
From experience, the hit on your wallet from an eviction, as well as the mental toll of having to deal with bad/freeloading tenants is not worth it. Unless you're losing an exorbitant amount of money from having it sit a little longer, wait for a better tenant. Your life will be way easier.
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Heather Hearsey
Real Estate Agent · Seattle, WA · Member since 2016 · 34 posts · 5 votes
9y
After reading all your updates I assumed you must the property must not be in Seattle, if it was you wouldn't have as much issue renting but you would have the issue of the new rule whereby it's a first come first rent basis and allows the tenant to pay their security deposit in installments!
If this time of year is really that slow you could offer a "trial lease of 4 months or just do month to month giving you both more flexibility to get out of it if you desire.
Your case is the exact reason why I dread having any of my tenants move. I now have to have a very specific list of questions and parameters for each potential renter so that I won't "discriminate" against anyone. All that will end up happening is that landlords will raise the bar on credit scores and income and raise the rents as well. It's supposed to help reduce the bidding war situation with rentals and give people with less income but good references and credit ratings a better opportunity to get the place but they have to get there first?! If your working a couple jobs or have kids the likely hood you'll be able to view a place first is unlikely.
Good luck!
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