Should I approve these potential tenants?

Question

Hi everyone,
I am in the process of leasing out my home for the second time and this time I don't want to miss a thorough screening. I am just having some problems deciding to accept or reject their application. I have run a screening through mysmartmove and it shows a chapter 7 bk in 2008. They have revolving debt of $26k and it shows they have paid on time approximately $560 per month. His income on the application is $4500 per month but the lady at human resource is not willing to verify his wages. The rent will be $1050 per month and I want to make sure they can afford it of course. How do you go around verifying wages with an uncooperative human resource person with a bad attitude. They have 2 years good rental history. Should I run a screening on his wife as well? I guess I should have done this from the get go.  thanks for any help

Jon Klaus · Answer

Ask for paycheck stubs.  Or W2. Or tax return.  Bank statements.

Account Closed · Answer

They filed a Ch. 7 BK in 2008.  And racked up $26K in credit card debt after they were eligible for credit again?  Definitely ask for a tax return or W-2.  Looks they are living on credit cards to me.

George P. · Answer

screen and check everyone that's over 21. period. 
he makes quite a bit of money. the large debt bill signifies poor spending habits. if all else fails and still concerned..why dont you do month to month or half a year lease?

James H. · Answer

Everybody had their style, but I'd decline them (probably). I am not keen on fresh ones from out of state. But my main concern, if I decided to consider them, would be verification of employment duration. I'd also consider what type of work they are doing and if it was stable work. Obviously they need to show sufficient income as well. Equally important would be payment history at last residence AND the one before.

In regards to human resources, you probably need to check your attitude. The employer is not legally allowed to just give out their employee's salary figures over the phone to some random yahoo (you, as far as they are concerned). That's for the employee's protection. They can verify that a person is employed, what their start date was and that's it. So next time you know to ask for paycheck stubs up front.

Good luck, and let us know what you decide. Welcome to BP. I've learned a lot here and have actually met some pretty cool local people through the website.

Steve Babiak · Answer

You have a few things to look for, because you want to see if there is some stability.  First type of stability is the new employer - are they new or established, and are they financially solvent as a business?  Then you want to see whether the type of job they have with the new employer is going to be lasting or just temporary.  I would want to understand their reason for leaving AZ if they had good incomes there; maybe the employer in AZ was going under, so moving became a good idea; maybe something else was going on.

David A. · Answer

Ok so the last potential tenants decided to change their minds about leasing the house. I had received a $200 non refundable payment from them and I accepted their lease. They weren't too happy about it but I explained that if they changed their minds and I accepted their lease, the money is NON REFUNDABLE. I just sent them a copy of the paper they both signed so thats done I lost a week with them and it was a hassle to verify their information.

I marketed the property for rent on craigslist again and a couple that just moved from Arizona to Texas put down a deposit to hold it as well. They both have been working at their jobs for only 3 weeks but make considerably good income. Their credit is a mess with $24k in debt but have been making payments on time. I will be calling their previous landlords in Arizona tomorrow but I really don't know if I should accept them. They are both nice but I learned from going to the REIA meeting last weekend to be firm and that I was. I let them know that we give 2 days grace period and on the 3rd an eviction notice will be placed on the door. Anyone have any insight on renting out your properties if their job history is only 3 weeks. They both were making good income back in Arizona but this worries me.

Linda Wright · Answer

Yes, screen both of them. Verify his income by getting a copy of his tax return and paystub. That's a must. It's usual to see things like revolving debt but consider his payments. If there's a pattern of regular payment like in a 12-month period, that's good.

Ryan M. · Answer

Remember they are renting not buying the house. The research generally will show questionable things which is why they are leasing.

I get concerned when people have 2k+ for deposit/rent off the bat, usually they left there past landlord stuck so they developed cash. Or they pay day loaned to get the money, this will be trouble month 2. I will finance half of the deposit over 2 months for the right people.

David A. · Answer

Hi Loc yes that is what i am requiring them to do. thanks for the reply

Loc R. · Answer

Screen the husband and screen the wife.  Make sure they have the deposit and 1st month's rent, in full, up front.  If they need to pay it in installments then they'll probably have problems down the road.

Should I approve these potential tenants?

Most Popular Reply