We just listed our first rental property and received lots of interest in it. We have narrowed it down to two candidates and I’m having trouble deciding which one is more qualified. This single family home is in a class B neighborhood with home values averaging around $95,000. I get a good feeling from both of them having met them and showed them the house. Here are the two candidates info:
- Maintenance Technician for over a year
- Makes slightly over 3X rule
- Foreclosure and auto loan default in 2013 when going through a divorce
- Lived back at home for a few years, then started renting again. 6 mo. of verified tenancy. Wants to move closer to children.
- Has 3 kids who spend weekends with him, but had listed no child support payments
Candidate 2 -
- Teacher, starting career in August - 4 years of previous employment history as bartender.
- makes slightly over 3X rule
- auto loan default in 2017
- 4 years of verified tenancy while in college
- 2 small dogs
Any advice would be much appreciated!
I'd go with Candidate 3. (The two you have are not strong candidates, especially for a B class property.)
@Andrew Perkins is candidate 2 currently a bartender? Is this candidate making 3x rent now, and verifiable? Bartending is hard to verify income.
Candidate 1 seems like the better choice, although the 6 month tenancy is worrisome. Was this a month to month or did he break a lease?
I see problems with both.
1. Neither has 2 or more years working at current job/profession.
2. Foreclosure is a red flag.
3. I can't imagine that there is no child support for candidate #1. This would be falsifying the application.
4. Both have auto loan defaults.
5. I don't see credit score listed and this should be a major deciding factor.
Since this is a class B neighborhood I would keep taking applications and hope for a better applicant.
It’s possible that I may not be classifying this correctly as class B. I met a handful of the other applicants and decided pretty quickly not to consider them.
Current income for candidate 1 is not 3X, but I have verified paperwork from the school district confirming new salary.
I called candidate 2’s current landlord and he verified the tenancy is from 1/19 - 7/19 so a 6 mo lease.
Updated 5 months ago
I have those two answers with the wrong candidate.
Neither keep looking . If you got a lot of response then you should have a decent pool of folks to choose from . If you don’t that’s bad marketing and on you
@Andrew Perkins I think I have to agree with the others. Neither are "B" property tenants, so i would try to hold out and market the heck out of the place. I've had a ton of luck with Facebook marketplace.
I probably should've understood the term before I used it, but after doing some research on the classifications, it is most definitely a Class C area. I still completely understand the concern with both applicants, but does this seem more appropriate for this type of property?
Agree that neither fits a class B... sounds like you're realizing its a class C. The tenant with a default from 2 years ago is certainly more problematic than the tenant with a default/foreclosure in 2013 via divorce. You might toss both back in as undersized and keep fishing - but if you must take one, go with the 2013 default guy.
@Andrew Perkins auto loan default?
Don’t like either at all. If I HAD to pick one. Probably candidate one. It seems his situation of divorce went rough but was the only reason he had such a bad history. Granted he should maybe had more savings for been prepared but with three kids that’s hard. Either way the first ones getting his life back together and the second one is just irresponsible. Teacher and or bartender who defaulted on an auto loan and has two dogs? I smell entitlement or just irresponsible
Agree that it's a C class property. Not sure properties under $100k can even be a B class property. Based upon the C class, I would take applicant #1 with the max security deposit that your state allows. Now, I do own B class properties, and I would not take either one of these applicants. Neither meets my criteria.
As others have said, I would move on from both of these applicants, but if I had to pick one I would go with applicant #2 with a 2 month security deposit and a pet deposit.
2 dogs? Hard pass. Keep looking.
@Andrew Perkins I agree with the above. These two are not qualified enough. They haven't been working for a long time as for their current job. This is a not sure deciding factor. Try find another more qualified candidate as your property is a great one.
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