Here is a new one for me. WOULD YOU RENT TO THESE Folks? If so would you rent with a higher deposit and first and last month's rent?
No evictions, No felonies, No pets, He makes 4.5x rent.
Career Disabled Veteran has a nasty divorce which leads to Chapter 13.
Tenant re-marries 5 years later and spouse has bad credit and is not working.
Prospective tenant gets veteran retirement and disability of which 1/2 is garnished for ex-spouse.
Prospective tenant has now taken a job teaching ROTC at the local high school. I have a copy of the contract.
Prospective tenant has been very open with all factors.
Last place place rented for 5 years at higher rent. Most recent payment history looks good.
When someone who seems to be doing all the right things...falls on bad times...I like to help out but what could go wrong?
@Dawn Quinn how long ago was the bankruptcy? Less then 5 years ago is probably a no go for me. More then that I’m fine usually
Thank you for responding SO quickly. The Chapter 13 was filed in 2013 but is not yet final? I would like to research the issues. If anyone knows of a good resource/article that would be great. I need to know what I would be up against in this case. Is there a number of years after Chapter 13 that makes it less risky for the landlord? Thanks
@Dawn Quinn I would try and talk to last 2 landlords and confirm payment history. 1st, last and deposit should protect you fairly well. If you do rent to them just lay down the rules once they are X days late you automatically start an eviction unless they have let you now and worked something out ahead of time.
I have found that getting extra or larger deposits upfront is a pretty powerful motivator for them to do the right thing (when possible) to prevent loosing all that money they paid.
Sounds like he pays his rent since he has no evictions, just confirm with most recent landlord of 5 years.
I also like to ask why they are moving. Just make sure it is not for a reason that you would turn them down, if you do get an honest answer.
Do your due diligence and get enough to prevent issues down the road (such as first, last, and deposit)
Are you really that hard up to get someone in your rental ? -Hard pass
I wouldn't do the extra work if there was another prospective tenant available. Honestly, if it takes you that many sentences to explain his problems, I'd probably go vacant for a month before renting to him.
I took that bet, and lost. High income, bankruptcy on medical debt. Got 18 months before things went to hell. Later and later payments until no payment.
Hi all, you have been so helpful and I have learned so much about this scenario. After a thorough evaluation I declined to rent to this person. My investigation found 3 not one bankruptcy filed and 3 eviction filings with the local magistrate and 30 to 60 late on car payments...not a good track record... With all that said it was a learning experience and I got to communicate with the great Pros on bigger pockets.
One important lesson I learned: People in bankruptcy are required to report to their bankruptcy administrator when they enter into a lease or any new debt or they can risk revoking the chapter 13 status. Meaning they would have to pay all the money back to their debtors. One attorney indicated that many folks don't know this and many don't do it with little recourse or negative actions. But good to know the law.
Follow up question: Where do people live that have no family, no co-signer, and bad eviction and credit? Are their agencies that can help these folks? Extended stay hotels may get expensive and old.
This is a good example of a very simple rule....Tenants Lie. He said he had one bankruptcy (due to no fault of his own of course). Then OP finds out there's multiple bankruptcies, evictions, etc.
I'd say a better question would be; How many rental properties do you need to own before you decide you're a charity and not a business person?