Bad Credit Applicant for Short Term lease?

Question

Hello BP!

I have a situation and wanted your input and advice/suggestions on how to move forward.  I currently house hack and rent out individual rooms in my SFH.  I have a really nice lead but her credit is not very good.  Typically I would decline and move on to the next but this would only be a 3 month lease.  She's also willing to pay all the rent upfront in full.  Should I accept or or is there anything else I should be worried about?

TIA

Pip

Deanna McCormick · Answer

@Natalie Vane,, "Renting to someone in your house, you have the same obligation as if they were renting a apartment.. you give proper notice, and you just can't change the locks to lock them out.. Honestly I reviewed some of your posts and you should know this.."

Same landlord laws for anyone renting, so know your state laws.. so if you have a room and rent it out be prepared to file eviction if your tenant is in default.

Best rule here is make sure your follow the state laws for landlord tenant laws and know what they are.

Personally you have no guarantee the person will vacate after 3 months. even with proper notice people, default and stay, and then you have to file.. could work but be prepared if it doesn't

Candace Postell · Answer

I'd say rent it... what is she going to do? Pay you three months rent upfront to tear the place down? Of course you'd want to do other background checks to get the full picture, but you already have the money in hand. if she presents herself as a good tenant after 90 days, then extend the lease if she wants to.

GL

Natalie Schanne · Answer

@Sovat Chheang - My rental agreement states the term i.e. 4/1/17 - 6/30/17 then states 30 day notice must be given and it auto-rolls over to month to month agreement. If it's working out and she wants to continue, why not? Otherwise, 30 days before the end, she needs to give you notice (or you need to give her notice). Obviously you can give notice at any time for breaking your lease's rules.

Depending on what you own, you probably don't fall under Maryland's official Landlord Tenant laws. I don't fall under Virginia's. I've never had to evict someone renting a bedroom - they've all left willingly - so I don't know how it would proceed in court. If the person was stealing from you or damaging things in your house while not paying rent, I think you would be within your rights to change the locks. I bought a Schlage Keypad lock to change the front door codes when a tenant leaves. I've never locked anyone out (which is generally a severe no no).

Sovat C. · Answer

@Natalie Vaneundefined you read my mind.  What happens after 30 days and she doesnt move out and she stops paying?  Would I have to go through a lengthy process to get her evicted?  I was going to draft the lease for 90 days.  After the 90 days she would be required to leave if I didn't draft another lease correct?  If she meshed well with the other roommates I would extend the term in the event she wanted to.  I also wasn't sure if laws were different if you also dwelled in the property.

Natalie Schanne · Answer

@Sovat Chheang - I would accept her if she's moving in asap, you are OK with her personality in person, and you have no other leads. I take interns for bedrooms in my house hack all the time without checking credit. Make sure any rules on overnight guests are clear. (I don't allow any.) Make it clear you'll start advertising and showing the room for rent in 60 days (30 days before she moves out).

Make sure you have a backup plan (sufficient security deposit) if she doesn't move out after 3 months but stops paying.

Rolanda Eldridge · Answer

@Sovat Chheang..Look at total picture...Rental history? Work History? Income?  Stability important!  GL