Potential tenant says they get paid in cash.

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Potential tenant says they get paid in cash.

Shashi Kumar Sharma
Honolulu, HI · Member since 2018 · 3 posts · 0 votes

Potential tenant says they gets paid in cash. Employer of 7 years ready to sign a notarized promissory note guaranteeing the rent. Background and credit screening on tenant came out positive with "Accept" recommendation from www.mysmartmove.com. What would be the best way to approach it? My knowledge from BP and online study says no, my gut says "they will pay".

This is my first rental property that I am own and trying to manage so I can learn as this is what I intend on doing in future.

Thanks in advance.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    Lots of people get paid in cash...bartenders and waiters are the first to pop to mind. I just ask for a couple months of bank statements to see regular inflow and outflow of money. I do the same for self employed people.

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  • Casity Kao
    Realtor · Grand Rapids, MI · Member since 2016 · 174 posts · 122 votes
    8y

    @Shashi Kumar Sharma  I never trust my gut unless it's saying no but what exactly does the tenant do that pays them cash, and why does their employer pay them cash?  I would look into the why and also what is the credit screening like?  Do they have a great credit or ok, and I think something sounds fishy but what employers signed a promissory note guaranteeing rent?  That makes no sense. Even my best employees, family included I would never cosign on a loan for them unless I was completely willing to pay all of it myself.  If that is the case, then you should have the employer on the lease instead of signing a promissory note.

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  • Shashi Kumar Sharma
    OP
    Honolulu, HI · Member since 2018 · 3 posts · 0 votes
    8y

    Tenant has worked there for 7 years and does office + yard work. So would it be better to have both of them on the lease even though the employer will not stay in the property? Would it bring up any new challenge for me?

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