Sign Lease Without Meeting Prospective Tenants?

Rental Property Investor · Dallas, TX · Member since 2018 · 93 posts · 28 votes

I have two applicants for a SFR. Ironically booth are from Seattle and claim they are moving to Dallas for new jobs. They don't have the offer letters but have provided contacts to verify the new job offer. Their background and credit checks have come clean. I did reference checks and they look good! They also provided copy of driver's license. One is a military veteran.

They are willing to sign the lease and pay security (mail check or paypal). I am a bit hesitant in leasing to tenants without meeting them! Have you heard of any scams? Why would anyone sign a lase without looking at the property?

What additional checks should I do, if any?

thanks, priyanka

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Marc Winter

Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes

Why are you hesitant? Something uneasy in the back of your stomach?

Listen to your gut--do not ever rent to someone that has not been to the property and inspected it. It's just not good business practice.

True, we live in a 'virtual' world, but photos, video walkthroughs or drone pix will not take the place of the actual tenant being inside the actual property they will actually be living in. They gotta experience it, smell it and feel it.

And if you are a self-manager, you need to do the same with the tenants (meet them) so you feel solidly confident about them living in your investment.

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Alvin Sylvain
Los Angeles · Member since 2018 · 466 posts · 471 votes
7y
Originally posted by @Thomas S.:

"what do you care if he's from next door or from Mars?"
I don't care as long as all those intending to live in the property are prepared to meet me for my personal interview faze of screening. That is not negotiable. If you want to live in my property I need to meet you in person first before I will approve. Prior to the personal interview I have all ready screened them in every other aspect and they are the most qualified. In reality, and knowing this is difficult for those from away, I generally just eliminate them early in screening so as not to waste my time on someone not able to meet. I will ask early on if they can meet and their response will simplify the process.
I usually eliminate applicants very quickly upfront without contacting them based on my "personal" requirements.
You sound like my wife! I would run the numbers on the applicants, my wife would meet them and get a "feel" for what kind of people they were.
An applicant didn't get into the house without a thumbs-up from both of us.
The strategy has been successful so far.
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Alvin Sylvain
Los Angeles · Member since 2018 · 466 posts · 471 votes
7y
Originally posted by @Priyanka K.:

Thank you all with the input! …interesting point of views! I know I was hesitant about signing the lease without meeting the tenant and without they seeing the house as I have never done that before but there is always a first time. In this day and age, a lot of work is now possible virtually and I do not want to miss a fair chance of helping a genuine person. Of course, there are scams and we need to do additional checks to be sure.
To be clear – it is not the scam that sends extra money. If it were a scam, they would not have applied and paid for background and credit check ($40). I carefully reviewed the reports, verified address on DL with reports and public records, talked to references and future employer. I will get security deposit through cozy which is the standard portal I use for local tenants as well.
I have been in touch with the prospective tenant, talked and texted multiple times and found absolutely no holes in all the conversations and all the checks.
I have to agree with @Alvin Sylvain, being out of state should not disqualify anyone!
I am going to sign the lease and will post updates here!
Thank you all again for your inputs!!
All we can do at this point is wish you the very best of luck! And do post updates. I'd feel pretty guilty if anything at all went wrong, so then it's my fault! *
*disclaimer: no, it wouldn't be my fault, but I'd still feel guilty
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Priyanka K.
OP
Rental Property Investor · Dallas, TX · Member since 2018 · 93 posts · 28 votes
7y
@Alvin Sylvain
aw, you are so sweet! No, it will not be anyone's fault if anything at all goes wrong!!
Hoping for the best and yes, i'll post updates!! :)
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
What you have to be prepared for is them to break their lease mid summer. Those from away will often take what ever they find to move into and then begin a more serious look once they are in. It happens a lot but in your case you will be fortunate as we will be going into the summer months by then.
You may want to sign them to a M2M lease either way just to protect yourself.
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Priyanka K.
OP
Rental Property Investor · Dallas, TX · Member since 2018 · 93 posts · 28 votes
7y
@Thomas S. what do you mean by 'to protect yourself'? protect from what and how will a M2M lease protect me? Will it not give them a better option to move out?
Anyone can ask to term a lease early, not just out of town renters. I have one that I met in person and are now asking to terminate the lease 4 months early as their personal circumstances have changed.
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Dave Turner
Specialist · Niagara On The Lake, ON · Member since 2018 · 7 posts · 1 vote
7y
@Priyanka K.
Why would they put a deposit if they were scammers?
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Priyanka K.
OP
Rental Property Investor · Dallas, TX · Member since 2018 · 93 posts · 28 votes
7y
@Dave Turner completely agree!!
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