Rental Property Investor 路 Bothell, WA 路 Member since 2018 路 76 posts 路 37 votes
I need some advice on whether to accept or decline tenant. Out of state rental has been listed for little bit over 1month by renterwarehouse. So far gotten 4 applications all single mother with 2, 3, 4 kids. Most of them meets income qualification but all of them had terrible credit, collections. I'm not sure what to do at this point, really desperate to rent it out, but also afraid of bad tenant. None of them had any evictions. One of the applicants is nursing assistant with 6800 a month income, rent is 1300. Has anyone had good tenant experience with terrible credit and 9 collection records. Thanks.
Take the best one and put them on a M2M lease. If they are sincere and willing to step up they will have no issues being on M2M from day one. If they know they are likely to not make rent payments on time they will not agree to a M2M lease.
Chances are that if you accept a tenant with bad credit they will be making excuses and not paying rent on time.
Make sure you make it crystal clear that the first time they are even one day late you will be non renewing their lease.
If you cave and allow them to stay after a late payment don't come back here asking for advice on how to deal with a tenant that consistently pays late.
Walnut Creek, CA 路 Member since 2015 路 3k+ posts 路 2k+ votes
8y
what's collections for.... it could be something stupid like a dispute w/ cable company or bill they don't feel like they should pay. To me, if it's credit or similar and NOT car loan... seems like they place value of car and house before all else.
Rental Property Investor 路 Edison, NJ 路 Member since 2016 路 753 posts 路 565 votes
8y
@Leon Li. I would not rent to anyone whom is behind on a utility bill or a car loan. I would rent to someone with just a medical collection if everything else checks out. Due to the our health care system unpaId medical bIlls are not unusual.
Perhaps the property could be marketed more aggressively to attract more renters? If it is being marketed aggressively then perhaps another price reduction could be considered.
Take the best one and put them on a M2M lease. If they are sincere and willing to step up they will have no issues being on M2M from day one. If they know they are likely to not make rent payments on time they will not agree to a M2M lease.
Chances are that if you accept a tenant with bad credit they will be making excuses and not paying rent on time.
Make sure you make it crystal clear that the first time they are even one day late you will be non renewing their lease.
If you cave and allow them to stay after a late payment don't come back here asking for advice on how to deal with a tenant that consistently pays late.
Rental Property Investor 路 Bothell, WA 路 Member since 2018 路 76 posts 路 37 votes
8y
@Thomas S.
Thanks for advice, I decided not to accept. M2m would not work very well as I have to pay 1 month lease fee for 1 year lease. I'm not sure if it's even an option with this PM.
I'll wait a bit longer theres more applications coming in just low quality.
Rental Property Investor 路 Bothell, WA 路 Member since 2018 路 76 posts 路 37 votes
8y
@Eric Adobo
I checked the neighborhood seems fine, property appraised for 111k. I did my research in the area as well with crime rate etc. I cant imagine property with that price been a D neighborhood. Yea I wont drop the price any further.
I have rentals locally in WA in A neighborhood, I also have problems renting them out with tons of views sometimes. People can be picky. I just need to be patient.
Restaurants 路 Bellevue, WA 路 Member since 2015 路 55 posts 路 10 votes
8y
It鈥檚 better to wait for a quality tenant vs waste time and money on a tenant you鈥檙e already sketchy on. Evicting a tenant, especially with kids can be a long and expensive process
Real Estate Investor 路 Milwaukee, WI 路 Member since 2017 路 14 posts 路 0 votes
8y
@Leon Li
Had you seen the property before hand or had a look at the area it鈥檚 in?
I probably wouldn鈥檛 classify this are as B B-
I鈥檇 be very surprised if you were able to get $1300/mo
Rental Property Investor 路 Bothell, WA 路 Member since 2018 路 76 posts 路 37 votes
8y
@Trischa Serafico
What would say it is C?. Its 2000 sqft 4 bed 1.5bath. Newly renovated. PM said it's reasonable priced, I dropped it to 1275. The PM is renterswarehouse, I saw good reviews about them on BP. I have another 1 in more crime area and was rented for 1250.
Rental Property Investor 路 Detroit, MI 路 Member since 2009 路 20 posts 路 3 votes
8y
I wouldn't lower the rent, that is only going to get you a lower quality of tenant. I would just wait it out until the right tenant comes along. You will be in a far worse situation if the tenant turns out to be slummy. If the property sits on the market for an extended length of time I would reconsider rental price, quality of rehab, and so on.