Success with previously evicted tenants? Anyone?

General Landlording & Rental Properties
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Success with previously evicted tenants? Anyone?

James Rodgers
Investor · Birmingham, AL · Member since 2016 · 135 posts · 42 votes

Has ANYONE out there actually had a successful experience with tenants who have had an eviction previously?

I pre-screen my tenants by saying "Total household income has to be 3x rent, no pets, smokers or evictions."

This was a sweet couple who drove by while I was working in the kitchen of the property. They called the number on my sign, so I let them come in. They had wanted to live in this house for more than a year when there was a FSBO sign in the yard, but couldn't buy. (That's how I got it) So they were all giddy that it was for rent now and that they were actually standing in the house.

They have 3 little girls, just like me. They were good on all the pre-screening requirements, except... "We were in an apartment and all of a sudden when the tenants above us took a shower, our bathroom filled with their water. I called the PM for 2 months, then finally just stopped paying rent."

They pledged their allegiance to the United States of my rent if I would just give them a chance. 

I told them they're welcome to apply and I'll review their application and make a decision. She also, before all of that, asked if she could give me her deposit today... they were very excited about this particular house. 

After they left, she texted me:

(1/2) WE ARE ASKING THAT YOU PLEASE GIVE US A CHANCE IN YOUR HOME

WE REALLY LOVE THE HOUSE AND WE WOULD LOVE TO RAISE OUR 3 DAUGHTERS IN THIS HOME

ALL WE ARE(2/2) ASKING IS FOR A CHANCE I PROMISE WE WILL NOT FAIL YOU WE WILL HAVE YOUR RENT ON TIME EVERY MONTH WE PROMISE

LOOK FORWARD TO DOING BUSINESS WITH YOU SOON.

............. would anybody concede?

Also.... this is my first rental. 

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Samantha Klein
Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
9y

They seem desperate. Sounds like a bad idea to me.

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  • Samantha Klein
    Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
    9y

    They seem desperate. Sounds like a bad idea to me.

    9Reply
  • Dylan B.
    Investor / Real Estate Agent · Oklahoma City, OK · Member since 2015 · 324 posts · 157 votes
    9y

    Agreed with Samantha. 

    0Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    9y

    You have screening criteria for a reason.  I am sure their previous landlord has a much different interpretation of the facts involving their eviction.

    3Reply
  • Chris T.
    Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    9y

    If they stopped paying rent supposedly due to the water issue, they can ALWAYS move out instead of getting evicted. 

    How're their credit scores? probably bad. 

    How about their employment verification and referrals? Did you call the PM company who filed for the eviction and checked with their previous landlords? 

    Do they show a history of constantly moving? bad sign if so.

    Trust your gut. Don't fall for the little kids + sob stories. This is your business, and you don't want it to be your first eviction. 

    5Reply
  • Rodrigo Medeiros
    Investor · Fort Lauderdale, FL · Member since 2017 · 9 posts · 4 votes
    9y

    I don't accept previously evicted tenants. Arguably, you could request first, last and security deposit so you would have two months to evict the tenant if the payment does not come on time. You would, however, have to always monitor payments closely and file for eviction quickly. Depending on which state you are this may take a long time. I learned the hard way that tenant selection is key and today I prefer to see the unit empty an additional month instead of accepting a tenant with an eviction record. 

    1Reply
  • James Rodgers
    OP
    Investor · Birmingham, AL · Member since 2016 · 135 posts · 42 votes
    9y

    Thanks. I have plenty of other folks interested, I just needed some backup that I am a businessman and not cruel. I have not given them an application yet, but still will and deny them based on not meeting the criteria.

    1Reply
  • Shaun Patterson
    Property Manager · West Palm Beach, FL · Member since 2012 · 296 posts · 143 votes
    9y

    Make sure you dont tell them no before getting the application just explain to them the screening standards and if they want to apply that is what you have to follow. 

    5Reply
  • Yvette M.
    Reno, NV · Member since 2016 · 328 posts · 97 votes
    9y

    Risk management.

    Heck no! I've had some prospects asking me to overlook their bad credit or evictions.  I immediately block their phone number and email. 

    0Reply
  • Douglas Krofcheck
    Hudson, NH · Member since 2017 · 70 posts · 47 votes
    9y
    Did they tell you they wanted to buy it or did you already know that? If not, sounds like a scam.
    0Reply
  • Roger S.
    Investor · TX · Member since 2015 · 393 posts · 290 votes
    9y

    Nope.  An eviction is just about the worst thing I could see on an application.  Not only did they not respect the property enough to pay, the landlord had to go to court to get them out.  Nu uh.  No way.

    3Reply
  • Ron Flatt
    Investor · Hillsboro, TX · Member since 2017 · 358 posts · 245 votes
    9y
    • I am the odd ball in the lot.  I will rent to a person with an eviction, but let me qualify.  
    • I increase the deposit by 50%
    • the eviction has to be older than 3 years
    • their current employment has to be more than 2 years.
    • Very few can meet all of these, but I do have 2 that are great renters for me.
    3Reply
  • Kyle R.
    Real Estate Investor · Charlotte, NC · Member since 2016 · 92 posts · 103 votes
    9y

    Don't do it. I rented to a tenant last year who had an eviction in 2010. They've consistently been 15-20 days late on rent each month. Rent was $1.2K and their income was $80k year. Don't get me wrong, some people do change, but the odds are stacked against you.

    2Reply
  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    If a tenant has a problem with landlord not completing essential repairs like the flooding from the upstairs unit, the tenant can file a complaint and escrow their rent payments with the city until the issue is resolved, so their excuse wouldn't work to prove they were responsible tenants put in a bad situation.  Bad renters look for landlords who may be inexperienced or desperate enough to buy their stories, so you have to learn proper ways to weed those out without getting yourself in any hot water with housing laws.   I let them know upfront that I verify landlord history and employment verification first, then require a report from an online screening service that they pay directly.  This usually eliminates most bad ones from asking for an application in the first place.  When they bring up any other issues, I just say, There is a space on the application for you to request consideration for any exceptions to my "Typical Qualifications."    

    I have accepted applicants with prior late payments (not judgment or eviction) due to special circumstances, like they went through a divorce and alimony wasn't paid on time, but now they qualify on their own.  But that is only after verifying everything, including the late payments, to insure they are being honest with me.   I do not accept anyone with evictions or judgments as they've obviously let it get that bad with someone else, so why would I expect to be treated differently?     

    2Reply
  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    9y

    @James Rodgers

    Right now, I am coming up with a list of ideas for how I can successfully deal with previously evicted tenants. I pride myself on doing things that other landlords may be unwilling to do, and targeting customers that others do not want to target.

    Keep in mind that there are car lots that will sell cars to people with awful credit and even repossessions. They just charge extremely high interest and fees. There are also rent to own stores, secured credit cards, prepaid cell phones and a whole host of services available to those who are terrible with money and credit. While it is more risky, the payoff can be huge.

    Going with that concept I came up with a few ideas.

    - Large security deposit. Literally double the security deposit of a tenant with no eviction.

    - Higher monthly rent. Those with an eviction would pay a premium to stay in my unit.

    - First and last month rent required at signing.

    - All leases to those with prior evictions would be month to month and can be terminated at any time.

    - Zero tolerance policy. Eviction proceedings will begin if rent is even 1 day late.

    - Monthly inspections of interior and exterior.

    Podcast Guest on Show #21
    9Reply
  • James Rodgers
    OP
    Investor · Birmingham, AL · Member since 2016 · 135 posts · 42 votes
    9y

    Anthony,

    I'm tracking with ya, but what I'm interested to know is if that has been financially profitable for you so far. How much of that have you implemented and have you had to tap into that risk buffer when it falls through?

    James

    0Reply
  • John Nachtigall
    Santa Rosa, CA · Member since 2017 · 325 posts · 701 votes
    9y

    I have not seen this discussed on the site yet, but what about a program like leaselock

    http://leaselock.com/

    I listened to the Wheelbarrow Profits podcast about them, it is basically for exactly this situation.   The tenet pays for the insurance, about 1 month rent or less, and in the case of any default they pay the landlord the rent.   So It is basically a non-refundable deposit the same size as you would take normally, but it guarantees payments for the life of the lease

    Seems like a good deal for everyone.

    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    These applicants, with their sickening sweet begging are a true stereo type of the bad tenant. The sweeter a applicant is the bigger the liar and the worse the tenant. They have developed their begging approach to landlords over a long period of time of abusing previous landlords and being evicted.

    Ever word out of their mouth is a lie.

    Landlords willing to take on the challenge of "manage" bad tenants will be disappointed in the results of this knave approach to business.. 

    2Reply
  • James Rodgers
    OP
    Investor · Birmingham, AL · Member since 2016 · 135 posts · 42 votes
    9y

    @Anthony Gayden

    0Reply
  • Jonathan PfluegerPro Member
    Ben Lomond, CA · Member since 2016 · 338 posts · 337 votes
    9y

    I would say stick to your rental qualification standards, you have them for a reason. I also sometimes feel "guilty" or "bad" for some of the people that apply to rent my apartments - but I always try and remember that it's businesses and not personal. I would rather take less in rent from a good tenant than more in rent from a risky tenant. 

    A safe bet is the best bet. 

    1Reply
  • Janel F.
    Investor · Brooklyn, NY · Member since 2015 · 65 posts · 18 votes
    9y
    I definitely wouldn't risk it on your first rental. I've been faced with some heart tugging stories as well but I've also learned the hard way to stick with my screening criteria.
    1Reply
  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    Every time I have made an exception to my usual rules, I have regretted it.  

    Podcast Guest on Show #244
    4Reply
  • Khoa Ha
    Real Estate Broker · Garden Grove, CA · Member since 2017 · 159 posts · 55 votes
    9y

    @James Rodgers

    I would recommend no also. I have dealt with evicting tenants before and during this process they will pull all the trick to try and get as much free rent as possible. As landlord, our priority is to keep the tenant happy so that we wouldn't waste time and money looking for new tenant. Unless the PM from their last rental is really dont know what they are doing I think it is very hard to believe that they would evict the tenant of a dispute like they have mention. With them being out the issue still have to be fix so a sane person will fix it and keep the tenant instead of wasting money on evicting them. Also, they do sound very desperate like someone mentioned above. With all of this red flags I would rather have someone else give them a second change then take it upon myself to do so. When you are late on your mortgage your lender will not extend it no penalty. My last rental contract I rented to this couple that told me they needed a place right away. With no eviction on their record I assumed that they were ok. Today I am in the middle of an eviction because they refuse to pay the rent. Now I also found out from their neighbor that they are planning to stay there rent free for as long as they can. Most of these people will not hesitate to mess you up as much as possible. They know you have a mortgage to pay but to them as long as it benefit them they will not care even when they are in the wrong. My lesson from this is to increase my screening process to filter out bad tenant. Hopefully the next one will be better. 

    Good Luck,

    KH

    1Reply
  • Gail K.
    Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    Desperate people are always "excited" about your particular house.

    That's because they've likely been turned down by a number of other landlords.

    Anyone who tries to shove a deposit on you "that day" (without even filling out an application) should be viewed with extreme caution.

    You have your criteria.  If it includes "no history of evictions" (like ours does) then you must "stick" with this on every person who inquires about your unit.  And yes, you will have many that will ignore/fail to read/fail to comprehend what you have written in such complicated language as "NO history of evictions" as any ads that you post.

    As an example, we currently have one house up for rent right now and our requirements clearly state the above.  We can screen for evictions online through our Marshall's Service as they are the ones who handle all the notices provided to tenants regarding this matter.  When I get an inquiry from online sources such as Zillow or Trulia I check names out online. To date half the people who contacted me have a history on an eviction.

    4Reply
  • Roger S.
    Investor · TX · Member since 2015 · 393 posts · 290 votes
    9y
    Originally posted by @Anthony Gayden:

    @James Rodgers

    Right now, I am coming up with a list of ideas for how I can successfully deal with previously evicted tenants. I pride myself on doing things that other landlords may be unwilling to do, and targeting customers that others do not want to target.

    Keep in mind that there are car lots that will sell cars to people with awful credit and even repossessions. They just charge extremely high interest and fees.

    It's a lot easier to repo a car than evict a tenant.   But if it works for you, who am I to say you're wrong?  Good luck.

    1Reply
  • James Rodgers
    OP
    Investor · Birmingham, AL · Member since 2016 · 135 posts · 42 votes
    9y

    To update everyone, I did email her an application and let her know up from that the criteria wouldn't be changing. Response of "so are you saying I can't get the house??" To which I say that the qualifications require no previous evictions. We go back and forth like that, then finally she thanks me in all caps for judging a book by its cover.. lol. 

    Disaster averted, I believe. Thanks for the backup, y'all.

    1Reply
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