Tenant screening - need help

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Tenant screening - need help

Flora Granter
Magnolia, TX · Member since 2016 · 31 posts · 5 votes
We got a tenant application for a 2006 single family house with monthly rent $1425. The applicant has a nice credit score of 702 and monthly income of $5000. Based on tenantsearch check, he has no criminal history and no eviction history. But he is from CA with two recent short-term contract job ( 4-month, 12-month) in Houston. He has two large debt:one $22k for vehicle; the other $20k. He has a credit card debt over $6000. He has two large dogs: 20 lbs French bulldog and 60 lbs pointer. He has a co-applicant who is his finances. She actually lives in California and they have a house there. She has 788 credit score and only has a house payment with monthly mortgage $1400. She has decent income $8000 monthly. I requested his bank statement and was told he is not comfortable with that. But he is willing to show his paystub. I requested increased non-refundable pet deposit due to the pet size from standard $250 to $400. He was not interested in the increased amount. My rental house has been vacant since end of November. I hope to rent to this tenant. But kinda of worries of his debt and his job stability and potential house damage from his large dogs. Please help me whether I should rent to this tenant. Your advice is appreciated. Newbie me wants to know comments and experience.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y

Income and credit are acceptable however everything else raises too many red flags for me personally. I would pass based on his refusal to provide required information, refusal to agree to pay pet deposit, sketchy situation regarding his present residence, uncertain employment and CA connections.

There is simply way too much wrong with this situation to bother wasting your time trying to make this applicant fit. PASS.

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    9y
    Originally posted by @Account Closed:

    @Sue K. If a tenant is going to provide a bank statement, then the landlord needs to provide the tenant their bank statement showing they have enough money to make their mortgage payments. When a guru come into town in a chicken truck, all the landlords run out to meet the guru and listen to the snake-oil salesmen.

     Snake oil.  Chicken trucks.  Gurus.  Oh my!

    0Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    There must be reasons why it was not rented that long.  Your other choice is leave it vacant to find that perfect tenant.

    0Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    9y
    Originally posted by @Account Closed:

    @Sue K. Many years ago, I was a property manager for over 900 units and never ask for a bank statement. I speak the truth and never listen to a guru. Wish you the best.

    1Reply
  • Amit M.
    Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    nothing wrong with asking for bank statements. I always do. I want to know, and have verified, how much cash reserves they have. That way I know that if they loose their job, I'm not becoming mr. bank. A few peeps have asked to cross out the account #. I'm fine with that. But no one has ever refused to provide bank docs.

    Not willing to provide bank docs?  Tell them to GTFO. 

    1Reply
  • Account Closed
    Johnson City, TN · Member since 2014 · 586 posts · 705 votes
    9y

    I believe that if I was applying for a rental and the landlord asked for my bank statements I would cheerfully comply. In turn, I would ask for bank statements and a credit report from the landlord in order to insure that they would be financially able to continue making the mortgage payments so I wouldn't be out on the street when they didn't fulfill their commitments.

    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    The other subtle unmentioned thing here is what the quality of the neighborhood/property is. If you invest in low quality properties with low rental demand because it was cheap and the cash flow numbers look great on paper, and then have to make all these concessions just to get somebody to rent the place, then you will ultimately get what you pay for. If on the other hand you buy in quality neighborhoods with high rental demand, then high quality properties attract high quality tenants that are willing and able to pay a higher rent to live there and your screening job is 90% complete right out of the gate ... still need to reserve 10% because there are nut jobs and basket cases applying to rent occasionally in any market, but then if you have a line of otherwise qualified tenants also wanting to rent your property as you would in such a neighborhood then it is much easier to tell them to "GTFO" as Amit M. so eloquently put it :)

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  • Dick Stevens
    Rental Property Investor · Haverhill, MA · Member since 2017 · 290 posts · 185 votes
    9y

    Flora, if jobs are moving out of the area, as you stated, then this will impact rents.  When the economy in your area was doing better rents go up, now that you're in a decline, maybe you're too high.  Check out your competition and their pricing.  Are their homes sitting vacant as long as yours.

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9y

    @Account Closed if a place is subsidized there are  more criteria.  They play by different rules. Your bank statements were probably to show you weren't sitting on cash not that you had  cash. Lots of hoops because it is probably government funded.

    Lets see if he produces paystubs.  This is usual about anywhere when landlords screen tenants.  There are some regional differences in what's usual for bank statements I see. 

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    9y
    Originally posted by @Colleen F.:

    @Account Closed if a place is subsidized there are  more criteria.  They play by different rules. Your bank statements were probably to show you weren't sitting on cash not that you had  cash. Lots of hoops because it is probably government funded.

    Lets see if he produces paystubs.  This is usual about anywhere when landlords screen tenants.  There are some regional differences in what's usual for bank statements I see. 

     I see your point, although, I was not asked to provide bank statements at the subsidized place I'm in.  The point, I think, is to show that I pay my bills, don't write bounced checks, too.

    If you look back at the original post about the guy's job history and debt, it is completely reasonable to have proof that if this job ends up being a short-term job, that the guy has the ability to continue paying his bills, including his rent.  And the only way to do that is with bank statements.

    And, it's not unusual for someone with this type of situation to be asked for them in CA.  I'm just saying that the fact that he's from CA doesn't explain why he isn't willing to produce bank statements.  Or extra pet fees.  

    And that's how I'd present it to this guy - look, you look like a meltdown about to happen, or someone who couldn't withstand a melt-down.  I might consider renting to you with the extra deposits and proof that you have enough savings to weather another job loss.  This is my investment and I need to find tenants who are stable and able to pay the rent and fulfill the contract.  If you're not willing and able to produce documents that satisfy what I need from you to protect my investment, then I'm afraid I cannot move forward with your application.

    Plus, I'd just shoo him away anyway, because anybody that arrogant will be a PITA tenant.

    For what it's worth, that's my opinion/experience.

    1Reply
  • Amit M.
    Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    bottom line: quality tenants seeking to rent in good neighborhoods usually don't have a problem being transparent and provide reasonable doc requests. And bank statements are relevant to the rental process and reasonable (i.e. Among other things it also allows me to confirm their income, as I can see the deposits.). Lower quality tenants renting in less desireable, higher vacancy areas may be able to find a LL willing to rent to them with sub par docs. Not my gig but could work for others. I suggest that you pick the lane you're  willing  to drive down. 

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