Would you rent to this family?

Would you rent to this family?

Sharad M.Pro Member
Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes

I had a couple come by this weekend to look at one of my rentals. They seemed very nice people, were very respectful. They wanted to fill in an application and went to the ATM to withdraw cash.

The husband called me from the ATM and said he wanted me to know something about his past before he submitted his application. He said he had a drug charge on his record from over 3 years ago.

Everything else about their application looks good. I have called the previous landlord and the landlord has good references for them. They have always paid the rent on time and no issues. The husband's employer also has good things to say about him.

The husband told me that he regrets the drug charge and has not had any issues since he and his wife met and they have two kids (2 and 1 years old). They have both been very respectful and seem nice people. When he submitted his application he told me how much he appreciates me giving him a chance.

They are moving from their old place to be in a better neighborhood and have a bigger place for the family.

I have a good gut feeling about it, but wanted to see what you guys thought. Would you automatically disqualify someone because of this or would you consider if they have started their life fresh? Started a family, found a new job, etc.?

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Real Estate Investor · Southeast, IA · Member since 2011 · 46 posts · 14 votes
15y

MAX!
I am surprised you are still even considering this person! He is lying! He had a friend pretend to be his landlord and another friend pretend to be his employer! This happened to a friend of mine, the first month's rent check bounced and it was all down hill from there! Run, don't walk away, why would you even call and ask him to explain? You know the old saying, Fool me once, shame on you, fool me twice, shame on me. Having said that, I am dying to hear how it turns out, keep us posted!

Good luck!

Linda

PS I am a native NW suburbaner!

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  • Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
    15y

    Haven't encountered a drug background, but I will pass along that Nolo's Landlord's Legal Guide indicates that the Fair Housing Amendment Act protects prior drug users under the "disability" clause, even if they have felony convictions for drug "use". Drug "dealing" or other drug charges would not protect the applicant, but you cannot refuse to rent to someone solely because they're an ex-addict.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y

    Addictions are now protected, even with felony convictions? My lease has a "no illegal activities" clause. Maybe that's illegal.

  • Commercial Real Estate Broker · Memphis, TN · Member since 2010 · 151 posts · 82 votes
    15y

    Great detective work. You have to take their word with a grain of salt.

  • Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
    15y

    If they state that they've been a past drug user and were convicted on that offense, but are now clean, then they are protected.

    Of course, if they engage in illegal drug use while a tenant, that is grounds for eviction.

  • Sharad M.Pro Member
    OP
    Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
    15y

    I was willing to give this guy a chance. Everyone has a past and if someone is genuinely willing to start a new life, I will be more than happy to give them a chance. I will perform my due diligence and if everything seems to make sense, I believe they deserve a second chance.

    I still haven't talked to him. I have left him a voicemail, so I will try to find out what's going on with his employment situation.

  • near Philadelphia, PA · Member since 2011 · 78 posts · 33 votes
    15y
    Originally posted by Max I:
    I was willing to give this guy a chance. Everyone has a past and if someone is genuinely willing to start a new life, I will be more than happy to give them a chance. I will perform my due diligence and if everything seems to make sense, I believe they deserve a second chance.

    I still haven't talked to him. I have left him a voicemail, so I will try to find out what's going on with his employment situation.

    At this point, you probably know all you need to know about this applicant.

    I am all for giving folks a 2nd chance. Absolutely.

    But his info about the owner and the employer is beyond questionable. Can't imagine how he can explain this away.

    Instead of having your wife call the alleged owner pretending to be a renter, have someone call from another city so caller ID doesn't throw anything off. "Unknown caller" and "blocked call" won't be good since people often ignore those calls. You don't want to leave a message since you want to catch them off guard. Have a friend call from 100 miles away w/o blocking their number.

    If she got the property from her uncle, then why isn't his name on record - at a minimum? One thing I love about New Jersey is that the history of ownership shows online for anyone to search and find. Very helpful.

    Did you get a paystub? Can't imagine what his excuse will be for this unless the company has more than one location, or he works offsite. I actually had this happen to me. I work from home most days and I had a client drop by our main office. Another (new) loan officer told her he never heard of me. Fortunately for me, she has been my client for years and knew that info was false. So, stuff happens.

    What employer is shown on his paystub. What employer is shown on his credit? If he doesn't want you to verify his true employment, that's a real bad sign cuz he might not be working there at all.

    After all, the employer would have to believe you are a real pathetic, awful, scum-of-the-earth employee for them to want to bad mouth the employee to a landlord. And if he's that bad, he wouldn't be working there.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y

    Here in Texas some tax appraisal websites are notoriously slow about updating ownership info. I have homes that I bought in 2009 that still don't show me as owner. I'm not saying that's your situation, but don't put too much trust in the tax district website.

  • Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
    15y
    Originally posted by Max I:
    I was willing to give this guy a chance. Everyone has a past and if someone is genuinely willing to start a new life, I will be more than happy to give them a chance. I will perform my due diligence and if everything seems to make sense, I believe they deserve a second chance.

    I still haven't talked to him. I have left him a voicemail, so I will try to find out what's going on with his employment situation.

    Max,

    This one sure turned out to be more interesting than I thought it would be. I hope you find a qualified tenant soon and good work on asking the questions.

  • Real Estate Investor · Southeast, IA · Member since 2011 · 46 posts · 14 votes
    15y

    MAX!
    I am surprised you are still even considering this person! He is lying! He had a friend pretend to be his landlord and another friend pretend to be his employer! This happened to a friend of mine, the first month's rent check bounced and it was all down hill from there! Run, don't walk away, why would you even call and ask him to explain? You know the old saying, Fool me once, shame on you, fool me twice, shame on me. Having said that, I am dying to hear how it turns out, keep us posted!

    Good luck!

    Linda

    PS I am a native NW suburbaner!

  • Investor · Aurora, CO · Member since 2009 · 200 posts · 74 votes
    15y

    Gotta agree with Linda. He lied before even renting your property. This is a future headache waiting to happen. I would not have denied him from the past drug conviction, but would have quickly denied him with the shenanigans he is now pulling.

    That said, one trick one of PM's uses is to leave out 1 piece of paper and show up unannounced to their current residence to have them sign it. Then you can quickly see how they live and if their residency story checks out.

    BTW I fully applaud you with the due diligence you are taking.

  • Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    15y

    I learned this one on BP - when you call a previous landlord, say that so and so applied to rent a property from you, and how do you know so and so? The person might easily get rattled, not knowing if they're supposed to be the landlord, the employer, the reference, etc.

    When I verify with a previous landlord, I do what Max does and check the tax records first. I also ask the landlord (once I am fairly sure they are the landlord) why the tenant is moving. Sometimes the tenant gives a different reason. Charles's idea is great too, try to verify a deliberately wrong piece of information and see what response you get.

    As for the employer, I not only call the supervisor's direct number that the tenant has given me, I call the company's main office number and ask for that supervisor.

    Despite all your best efforts, sometimes you get a bad tenant that slips through. Or a very good one. I have a fairly new tenant (3 months now) who is a self employed office cleaner. She had no pay stubs to show me, but had no problem giving me copies of her last 2 year's tax returns. She also said she sometimes gets paid in cash. Her adult daughter is living with her and she has a part time job and goes to college, and she provided her pay stubs. I was leery at first, but she had good references and she followed through with everything quickly. I took a chance, and so far it's worked out well.

    Sometimes being a landlord is just a crapshoot.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    15y
    Originally posted by Aly L:
    I learned this one on BP - when you call a previous landlord, say that so and so applied to rent a property from you, and how do you know so and so? The person might easily get rattled, not knowing if they're supposed to be the landlord, the employer, the reference, etc.

    When I verify with a previous landlord, I do what Max does and check the tax records first. I also ask the landlord (once I am fairly sure they are the landlord) why the tenant is moving. Sometimes the tenant gives a different reason. Charles's idea is great too, try to verify a deliberately wrong piece of information and see what response you get.

    As for the employer, I not only call the supervisor's direct number that the tenant has given me, I call the company's main office number and ask for that supervisor.

    .

    These tricks definitely work, they helped me weed out someone who wasn't being truthful. It's nice to go with your gut, but it's good to have some concrete evidence in case they make a stink about being denied.

  • Sharad M.Pro Member
    OP
    Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
    15y

    So I spoke with the applicant this morning and this is how the conversation went:

    Me: "Hey, so we have a problem. I called your employer to confirm your employment and they said nobody with your or your supervisor's name worked there. Can you explain what's going on with that?"

    Applicant: "That's strange, I work there. Who did you speak with?"

    Me: "You said you work night shift, so I spoke with the manager on the night shift, but he didn't recognize your name."

    Applicant: "Hey, man, I am just an honest, hard-working guy who's trying to find a good place to live for his family. I pay my rent on time and create no trouble."

    Me: "Believe me, I want you to have this place, but I am going to verify every single thing you wrote on that application and if you are unable to prove even one thing, you won't be getting the place. Now, call your employer to sort this out and then let me know once it's sorted out. I will then call your employer directly to confirm. If you lied on your application, don't bother to call me."

    I haven't heard back from him. Before this conversation, he was calling me 3-4 times a day to follow up.

    Another lesson I learned from this experience:

    Before I run an applicant's information through the tenant screening service, I call every single reference on the application to verify. If something doesn't make sense, I deny their application and keep the application money. From this experience, I ended up keeping $50 for two applications. I lost my time on the application, but at least I didn't need to use the tenant screening service. So for me, before I proceed to the tenant screening service, everything on the application must make sense.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y

    Good work, Max. Do you have any other viable prospective tenants?

  • near Philadelphia, PA · Member since 2011 · 78 posts · 33 votes
    15y

    That's great. Fortunately the dude wasn't able to pull a fast one.

  • Sharad M.Pro Member
    OP
    Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
    15y

    Thanks Jon and MsJerseyDevil.

    I already have found other tenants and they are moving in tomorrow, so things worked out for the best. Everything happens for a reason.

    Here's another trick thing I have found to check the applicant's information. What I do now is call the landlord and tell them that the applicant listed them as their employer, and if they can verify the employment information. If the person on the other side is a friend, he will play along, but a real landlord will correct me. I do the same thing will the employer, call the employer and tell them they the applicant listed them as the landlord. When they correct me, I just apologize and say I mixed up the applicant's information and verify the information.
    Working out great so far!

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