Would YOU Let Them Rent

Question

Hi Everyone.  My PM just called me about a family that just applied for my SFH rental in Minnesota.  We haven't ran credit or done any of the backgrounds yet.  Heres the situation.  It sounds Like a family of 4 that either 2 or 3 of the people are disabled and on disability (Which is not the issue).  The Mother is the caretaker.  They disclosed up front that there credit is bad.  They lived in there last rental for 3 years and the one before that for 6.  It sounds like this would all be government money paying for the rent.  Not really sure how that works.  They claim they moved out of there last rental because the landlord was selling.  If I were to rent to them that would mean straying from my original perimeters set for tenants (good credit, 3X income, good rental history, no criminal background).  The bad credit scares me but this may be to medical bills.  According to my PM they meet the income requirements we have set.  Any advice on this would be greatly appreciated.  Thanks in advance.

Thomas S. · Answer

Based on them not meeting your screening standards it is a no brainer. When applicants do not meet screening standards they are rejected. If not why bother having standards.

I would reject them for other reasons as well based on my screening policies.

Christian Wathne · Answer

Denver is a hot market, no reason to lower your standards on credit or any other factor. I recently went through something like this with my leasing agent in Seattle; he was sending me seciton8 and other charity program applications, and applicants whos "dog would stay outside" (no pets rental house); I responded with this below email, then waited a few more days and got a great tenant.

"Hi Roy, thanks for the updates.

So long as I a complying with any applicable laws, I am not interested in section 8, rapid rehousing or any other government/charity programs for this property. The type of tenant I'm looking for is one who has a strong and stable income, good credit, no pets, will take care of the property and is willing to pay extra for a nicer home. Section8/rapid rehousing/etc does not meet that criteria. "

Michael Noto · Answer

@Scot Sorenson We are in this situation a lot both as an owner of property filling rental units and filling them for clients here in CT. Pass along your minimum screening requirements to your PM and tell them you are not interested in considering anyone that does not meet them.

Be very clear on this because you are wasting your time, the PMs time, and potential tenants time when you aren't clear about your minimum requirements.  Not sure what you want for minimum requirements?  Figure it out by collaborating with you PM and collecting data.  Setting these minimums will save your PM a ton of time while he is fielding inquiries.

When we fill units for clients we get from them what minimum screening requirements they would like for us to pass along.  If those requirements are to stringent or to lax for the area we give our recommendations, but in the end the landlord calls the shots.  Most value our opinion though because of our market experience.

Patti Robertson · Answer

@Scot Sorenson - Got it.  I made the mistake of assuming it was a low end neighborhood.  I make the decision to SEC 8 or not SEC 8 based on the neighborhood.

Scot Sorenson · Answer

@Patti Robertson Thanks for the advice.  I am trying to stay clear of section 8 and am more interested in this being a hirer end rental.

Scot Sorenson · Answer

@Michael Noto Thanks for the advice.  Your right I need to set a standard and let my PM know so that he doesn't waist his time.

Patti Robertson · Answer

I rent to a lot of SEC 8 voucher holders.  What I suggest is audit their story.  If the owner is selling that should be pretty easy to find out.  Is it currently listed for sale or rent?  It is likely one or the other.  Are there any landlord court records for the tenants?  My rents are usually too high for someone on SEC 8 with only disability income and no job to get approved.  You can submit the package and take them only if the rent is approved at what you are asking.

Scot Sorenson · Answer

@Amber Gonion Thanks.  That would be funny if it happened to be the same people.

Scot Sorenson · Answer

@Thomas S. your right I need to take the emotion out and stick to my standards.  Thanks

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