What would you do? Potential renter with a felony.

Grand Rapids, MI · Member since 2019 · 3 posts · 26 votes

We put our home on Zillow/FB Marketplace/Avail about 10 days ago. I've gotten a lot of interest, but no follow through. A potential renter wanted to see the house but asked to fill out the application first. I thought that was odd, I offered that she see if first or call with any questions. She called and told me straight off that her husband has 2 prior felonies. First was in 1994 and the second was in 2014 and he is on probation. Am I naive to consider them? I'm considering giving them a tour just to see how I feel when I meet him. She also told me they had a home-fire and are staying in a hotel and want to move in asap. Is that another red flag?

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Gary Barella

Flipper/Rehabber · East Brunswick, NJ · Member since 2018 · 64 posts · 152 votes

Being upfront and honest with you before either of you waste any time is true indicator a bad person has changed for the good. There are a million ways around landlord background checks believe me. I was in prison for stealing cars and drugs and my partner for attempted murder and we are both changed people with wives and children and big houses and millions in assets. Some people do change. If they gave you the runaround and then we’re honest with you that’s a different story but they gambled by being honest with you knowing they might not be able to move in Because they have changed in their hearts and are no longer willing to deceive anyone.

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Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@Shayna Hatcher
Red flags everywhere. I personally would not even tell them the address.
23 Reply
Brian Ploszay
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
7y
Three red flags. Take a pass.
13 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
@Shayna Hatcher
Not all felonies are violent and it’s completely possible somebody made choices decades ago in their youth and doing great now hey atleast she didn’t hide that . also it’s completely there was a fire resulting in them being relocated . Are those red flags ? Yeah I’d say but not something so heinous or odd that I wouldn’t atleast walk them through if your doing group tours of the unit . Most have a knee jerk reaction to stuff like this but I would atleast consider showing it and hear them out -unless you had much better choices to pick from
31 Reply
Gary Barella
Flipper/Rehabber · East Brunswick, NJ · Member since 2018 · 64 posts · 152 votes
7y
Being upfront and honest with you before either of you waste any time is true indicator a bad person has changed for the good. There are a million ways around landlord background checks believe me. I was in prison for stealing cars and drugs and my partner for attempted murder and we are both changed people with wives and children and big houses and millions in assets. Some people do change. If they gave you the runaround and then we’re honest with you that’s a different story but they gambled by being honest with you knowing they might not be able to move in Because they have changed in their hearts and are no longer willing to deceive anyone.
68 Reply
Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
7y
Originally posted by @Dennis M.:
Not all felonies are violent and it’s completely possible somebody made choices decades ago in their youth and doing great now hey atleast she didn’t hide that .
The husband had 2 prior felonies - first in 1994 and second in 2014. The 1994 one might be youthful stupidity. The 2014 one is not and it is not decades ago, it is 4 years ago. I suspect that there were lots of other felonies in between 1994 - 2014 and he just wasn't caught.
Run the hell away from this one!!
27 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
If you are a social worker then embrace these applicants as a personal challenge. If you are a landlord go dark and hope they move on to some other unsuspecting landlord.
15 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y
It depends on the crime. Attempted murder? No. DUI, sure. Financial crimes? No. Smoking weed, sure.
Just use common sense.
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41 Reply
Marci Stein
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
7y
I might consider them if I had no other candidates , but only with 2 months security deposit in addition to the rent.
6 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Okay I didn’t see that! yeah maybe I’d pass on them
2 Reply
Xavier Mahoney
Rental Property Investor · Rochester, NY · Member since 2018 · 2 posts · 5 votes
7y
@Gary Barella that story hit home with me heavy. That’s inspirational man. Was it hard getting involved with real estate after your bid ?
4 Reply
Account Closed
Orlando, FL · Member since 2018 · 27 posts · 10 votes
7y
@Shayna Hatcher
Hi Shayna,
I didn’t read all the replies so, sorry if this was mentioned. One flag can be investigated and removed, but you’ve got a few. I’d pass. I’m currently a detective and we have a tonnnnnn of couples living in our extended stay motels because they can’t get approved to rent. And while the felony in 94 can be easily overlooked, the one in 2014 proves potential irresponsibility. In the future, if the only red flag is a house fire and hotel situation, you can always make a public records request on the former address at your police and/or public safety administration in your city/county.
6 Reply
Sam Shueh
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
7y
I pass.
3 Reply
Amy Beth
Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
7y
@Shayna Hatcher I would pass because one felony is too recent and their need to move fast is also suspicious. I would google the applicant’s names to get the details of the felonies and also look up their last address to see what the true story is.
I would not even consider them with these red flags but if you do want to consider them I would call the last landlord to find out about why they left and the landlord before that too.
3 Reply
Mitch Coluzzi
Investor · Des Moines, IA · Member since 2014 · 238 posts · 230 votes
7y
@Shayna Hatcher in this case I would take a pass. But that pass should be based on your WRITTEN AND AVAILABLE rental standards. When it comes to criminal history, that is not a protected class... yet. So define what you find acceptable and publish it to any and all prospects. If they feel they meet the standards you have defined, accept an application and issue a decision.
My suggestion is to find 5-7 local applications (and application standards) in your geographic area from experienced property managers. Compare, contrast, and then define your own policies utilizing common sense.
You must proactively defend your decisions. Eventually with any degree of volume, someone WILL claim you discriminated for a completely unrelated reason. The burden of proof is going to be on you... It will be frustrating and even more frustrationing is that... without a written policy, it'll be extremely difficult to explain that you didn't discriminate.
Sidenote: We send application standards BEFORE they schedule a first showing. In fact, we ask them to confirm they've read the standards before confirming the appointment. We also reiterate (and make available) rental standards and application process at the showing. We found most folks can read the standards and do not bother applying (paying the application fee) if they do not qualify.
15 Reply
Brandon Metzler
Flipper/Rehabber · Brandon, MS · Member since 2017 · 30 posts · 7 votes
7y
Not all felonies are equal. Some of them I would think most landlords would be okay with a tenant having one. You definitely need to see what they are, and check out the fire story for the potential tenants’ truthfulness.
2 Reply
Milan Mehta
Developer · Cary, NC · Member since 2016 · 98 posts · 53 votes
7y
@Account Closed In my experience, once you get burned a few times as a landlord, you develop your own "deal breaker" rules that you stick with as a policy. I'm a sucker for second chances, but you are running a business and you should stick to your requirements and not feel you need to make a special exception.
5 Reply
Matt K.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
7y
Originally posted by @Marci Stein:

I might consider them if I had no other candidates , but only with 2 months security deposit in addition to the rent.
Curious how the security deposit makes you feel more comfortable about the felonies... Going to wager dude didn't get them for not paying rent.
4 Reply
Christopher Pearson
Member since 2019 · 7 posts · 7 votes
7y
I've rented to a felon that spent 5 years in jail for aggravated robbery when he was young. He was a great tenant. I spoke to his probation officer and several referrals before accepting him. In your case I would never consider renting to this couple. Just move on, if you are not getting any commitment from better candidates and you need to rent asap, consider lowering the rent a little but don't take a bad tenant because you haven't find the right one yet.
2 Reply
Jeremy A.
Rental Property Investor · ME · Member since 2018 · 179 posts · 59 votes
7y
Originally posted by @Account Closed:

We put our home on Zillow/FB Marketplace/Avail about 10 days ago. I've gotten a lot of interest, but no follow through. A potential renter wanted to see the house but asked to fill out the application first. I thought that was odd, I offered that she see if first or call with any questions. She called and told me straight off that her husband has 2 prior felonies. First was in 1994 and the second was in 2014 and he is on probation. Am I naive to consider them? I'm considering giving them a tour just to see how I feel when I meet him. She also told me they had a home-fire and are staying in a hotel and want to move in asap. Is that another red flag?
no. many folks here are ignorant, self righteous and bubble hasnt popped yet. many here think its still ok to discriminate or try repunish. many my tenants are have been felons or misdemeanors. ...
1. know many who are actually innocent only self righteous dumb sheep like government types ignore reality that 25% of all convictions are bogus. see innocence project as examples.
2. if do full background check on all tenants. i find ones who honest up front and honesty is confirmed by paperwork ate usually pay rent consistently but anyone on taxpayer funded a long time or who have been evicted prior are more "dangerous" more likely not pay rent than any felon.
3. most felonies are micro managed to death on probation and required to keep job against all odds like discrimination, biased etc so if they have verifiable income treat them same.
4. look around...you see we now live in police state its only matter time till you get arrested for breaking some made up unconstitutional rule and your welfare paid town ceo is wanna be cop itching extort more money from you to pay his salary. amerika incarcerates more people than any other country. so not unusual. everyone deserves get honest chance qualify for a safe place live.
5. if really uncertain any felon tenant can get bonded to lower risk and should require renters insurance and pay security deposit. just like all other qualifing candidates even dirt bag govt workers who make these dumb regs into law.
6.
4 Reply
Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
@Account Closed I would strongly recommend instituting some kind of pre-screening process when people inquire about a rental. It can save you a lot of time dealing with people that otherwise wouldn't qualify to rent your apartment.
1 Reply
Account Closed
Lender · Pensacola, FL · Member since 2017 · 658 posts · 626 votes
7y
Originally posted by @Mitch Coluzzi:

. . When it comes to criminal history, that is not a protected class... yet. . . .
FYI -- I don't know if this topic has been discussed elsewhere on BiggerPockets, but Seattle has moved forward with an ordinance and a lawsuit has been filed by landlords.
2 Reply
Account Closed
OP
Grand Rapids, MI · Member since 2019 · 3 posts · 26 votes
7y
@Mitch Coluzzi Everyone here has been very insightful, but this is probably the most helpful. I will get a rental standard form together asap. Thank you.
1 Reply
Alex D.
Rental Property Investor · Honolulu, HI · Member since 2015 · 143 posts · 61 votes
7y
I've delt with the people in those situations growing up and with my last job for a few years including heavily vetting people. I've honestly seen amazing changes over the years and someone whom flat out told you ahead of time, tells me they're serious and don't want to waste either of you guy's times. I would find out specifically what it is since it's still a risk you'd want to be weary of.
1 Reply
Mitch Coluzzi
Investor · Des Moines, IA · Member since 2014 · 238 posts · 230 votes
7y
@Roger Steciak interesting. I will look into this out of sheer curiousity. I've heard the rumblings of several states pushing for time limitations and out-right disregard for history but hadn't heard of anyone pulling the trigger (pun intended) quite yet.
I would be happy to share our published rental application standards (defined for central Iowa, reviewed and approved by local real estate attornies) if anyone is in need. We are relatively strict, but it has worked great. There is some behind the scene magic (decision matrix for conditional approval) that I won't share publicly, but the standards are still useful for defining your own!
6 Reply
Jeremy A.
Rental Property Investor · ME · Member since 2018 · 179 posts · 59 votes
7y
free application online i use www.rentapplication.net/
2 Reply

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