I am very skeptical about renting to an individual

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I am very skeptical about renting to an individual

Ronesha Fisher
Philadelphia, PA · Member since 2016 · 21 posts · 5 votes

Hello all,

 So I wanted to have an open discussion of my current situation. I have multifamily unit and I am currently looking for a tenant. I have the price at a reasonable price and I came across this one female who has great income and job history. I am currently waiting for her POR so I can just ask a few questions from her previous landlord. My issue is that it is a 1 bedroom and she wants to move in with 3 kids under 7. I just want to hear some suggestions and opinions and options. I am very new to real estate investing so hearing what I should do would be great 

Thanks   

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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y

You should have a hard and firm rule about occupancy.  My parent always used no more than 2 people (note, people not kids) per room occupancy.  They only were in non-compliance with the rule when they rented to the maximum occupancy and the renters got preggers and added another kid.  That situation you can not avoid.

BTW, if she has 3 kids under 7 she will have a boy friend moving in shortly.  It always happens!

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  • Jacob Miller
    Rental Property Investor · OH · Member since 2019 · 21 posts · 9 votes
    7y

    @Ronesha Fisher Simplest way possible.

    Tell anyone interested that there is a 30 day period to submit rent applications and then you have more time to see what your tenant options are. You could also add a larger security deposit .... Hope this helps.

    0Reply
  • Brendon Pishny
    Investor · Olathe, KS · Member since 2017 · 123 posts · 99 votes
    7y

    @Ronesha Fisher put on your application what you allow. Mine says no more than 2 persons per bedroom. May not help in this case. Be careful of discrimination.

    0Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    7y

    Noooooooo. Don't do it. Most places allow you to limit occupancy based on number of people per bedroom (here infants under 6 months don't count). Find out the ocupancy rules for your rental area. In my rental area, the max occupants in a one-bedroom is two if the bedroom is at least 100 sq ft. If the bedroom is at least 70 sq ft. but under 100 sq ft max occupancy of the room is one. Learn the rules for your city so you don't violate codes or fair housing laws. You don't want to have the unit packed over occupancy (and possibly be liable) if there is a fire and children die (God forbid).

    1Reply
  • Jane Wish
    New York City, NY · Member since 2019 · 20 posts · 12 votes
    7y

    I think a good rule of thumb, in general, is to listen to your gut feeling. It's there for a reason. There are plenty of other fish in the sea and it will rent!

    0Reply
  • Bill Kramer
    Contractor · Evansville, IN · Member since 2019 · 142 posts · 208 votes
    7y

    Is it legal to have the applicant list everyone that will be living in the rental on the app so you don't get my surprises?

    I just fix the places, and I'm still learning the administration side before I get my first rental.

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    7y

    @Bill Kramer, it is legal to ask for the names and ages of all people who will be living in the property. It is illegal to discriminate because they have children.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
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  • Dylan ThomasPro Member
    Rental Property Investor · PA · Member since 2019 · 63 posts · 57 votes
    7y

    @Ronesha Fisher I agree with most everyone. Occupancy is a big factor. And it seems like it's just too many people in a small apartment. Just point to the facts. Not to the kids. Tread lightly

    0Reply
  • Amy Beth
    Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    7y

    @Ronesha Fisher. I would select another applicant. I think that with that many in a small unit there is likely to be a lot of wear and tear to your property. I would thank the tenant for her application when she follows up with you and let her know that you have selected another applicant.

    0Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    I usually go with logic and my gut when the story on paper doesn't add up.  

    0Reply
  • Brian Liscio
    Little Falls, NJ · Member since 2014 · 88 posts · 49 votes
    7y

    @Ronesha Fisher

    This is a simple Nope the place is too small to accommodate that many people.

    -Go with the gut on this one...

    0Reply
  • Jennifer McMurray
    Real Estate Broker · Northwest Arkansas · Member since 2018 · 9 posts · 9 votes
    7y

    Just note, as others have discussed, it's a Fair Housing Violation to discriminate based on familial status--- basically not renting to them because she has kids "that will destroy the place." Beyond an application and references, you should request a credit report (and not the kind that just shows a credit score attached to most credit cards now days). Inspect the COMPLETE credit report-- that is usually the most telling piece of an application and gives you a reason to deny if it's terrible and full of late payments and delinquencies. 

    0Reply
  • Billy Smith
    Shawnee Mission, KS · Member since 2016 · 719 posts · 313 votes
    7y

    just state you can not move that many folks into a place that size code violation issue .

    0Reply
  • Sylvia B.
    Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Jennifer McMurray:

    Just note, as others have discussed, it's a Fair Housing Violation to discriminate based on familial status--- basically not renting to them because she has kids "that will destroy the place." Beyond an application and references, you should request a credit report (and not the kind that just shows a credit score attached to most credit cards now days). Inspect the COMPLETE credit report-- that is usually the most telling piece of an application and gives you a reason to deny if it's terrible and full of late payments and delinquencies. 

     She needs no other reason to deny. 4 people in one bedroom is too many. That is NOT discrimination based on familial status, it is safety.

    0Reply
  • Ronesha Fisher
    OP
    Philadelphia, PA · Member since 2016 · 21 posts · 5 votes
    7y

    Thanks everyone for the advice, tips and opinions!!! 

    0Reply
  • Evan Brookman
    Nashville · Member since 2019 · 110 posts · 23 votes
    7y

    So that’s 4 people staying in one bedroom? That is too much! I think you would better refuse them. You can not forecast future situation. And it will be hard for you to handle it. Unless you negotiate with her and she agrees with a high deposit to guarantee.

    0Reply
  • Phil DuChamp
    Investor · Indianapolis, IN · Member since 2014 · 61 posts · 28 votes
    7y

    @Ronesha Fisher in my town there’s a rule for how many residents can occupy a house. Something like two people for every bedroom... it may be worth a call to code enforcement in your area.

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