Out of state tenant application

General Landlording & Rental Properties
6yFollow

Out of state tenant application

Justin Phillip
Austin, TX · Member since 2016 · 24 posts · 3 votes

I’ve just completed the rehab on a property and started taking rental applications.

I’ve received an application via Zillow (with their credit/background check), and received what appears to be a very qualified application from someone out of state who is planning to move in next week.

I’ve never agreed to a lease in the past without meeting the tenant face to face, and naturally have concerns.

Am I being overly paranoid? Have any of you done this and what recommendations would you have?

Background check came back clear and the credit was acceptable. I was thinking of requiring a notary for the lease agreement (if I decide to accept them prior to meeting face to face.) They are very anxious to confirm the leasing ASAP to ensure they will get the house (in Austin,TX), and their “aggressiveness” has got me a little concerned.

*aggressive is not the right word. They’re just really on top of it and want to secure my rental.

0Reply
109 views

Most Popular Reply

Terrell Garren
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
6y

My experience is to avoid potential applicants living 100+ miles away.  They generally move again within 12 months after they learn the area or things did not work out like that expected. Turnover is my biggest expense.  It's just too easy to wait and find great local tenants. 

4Reply
See this reply in the discussion

27 Replies

Jump to latestLatest
  • Terrell Garren
    Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    6y

    My experience is to avoid potential applicants living 100+ miles away.  They generally move again within 12 months after they learn the area or things did not work out like that expected. Turnover is my biggest expense.  It's just too easy to wait and find great local tenants. 

    4Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    Can you talk to them face to face online?  People move long distances, but if I was renting a place, I'd want to go to that town and check it out OR have a trusted friend or family member check it out.

    0Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    @Justin Phillip

    How did you verify their identity? How are they paying for the deposit and first months rent? Why can’t they visit the area first to sign the lease and actually view the rental?

    I’ve never rented a unit to somebody that I have not met. But you definitely need verification of who the person is, and maybe a little FaceTime or Skype. Also, do they have a job waiting for them locally?

    0Reply
  • Justin Phillip
    OP
    Austin, TX · Member since 2016 · 24 posts · 3 votes
    6y

    @Anthony Wick

    Thanks for your input. They’ll sign the lease and can pay the deposit via check or online transfer. They’re moving because of a job transfer. I think Skyping or Face timing then would be a good idea.

    1Reply
  • Justin Phillip
    OP
    Austin, TX · Member since 2016 · 24 posts · 3 votes
    6y

    @Justin Phillip

    The only verification I have now is a cleared background check, credit check, and copy of ID.

    1Reply
  • Justin Phillip
    OP
    Austin, TX · Member since 2016 · 24 posts · 3 votes
    6y

    @Terrell Garren

    Great point. Thanks for the input !

    0Reply
  • Shain Ismailovski
    Real Estate Agent · NJ · Member since 2019 · 237 posts · 169 votes
    6y

    Don't let the applicant rush you. This is YOUR business after all. Echoing what others have said, I would want to meet the applicant in person and have an in person interview with them before deciding. Them moving from out of state raises questions and may be a red flag as they may move again as soon as their lease is up. If they don't have the patience for your due diligence and are constantly hounding you for updates I would hold off on them.

    1Reply
  • Justin Phillip
    OP
    Austin, TX · Member since 2016 · 24 posts · 3 votes
    6y
    Originally posted by @Shain Ismailovski:

    Don't let the applicant rush you. This is YOUR business after all. Echoing what others have said, I would want to meet the applicant in person and have an in person interview with them before deciding. Them moving from out of state raises questions and may be a red flag as they may move again as soon as their lease is up. If they don't have the patience for your due diligence and are constantly hounding you for updates I would hold off on them.

    great advice @shain . thank you!

    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    Skyping or facetiming is a good idea. I have had people show a house via  facetime and it has worked out okay. They didn't turn out to be the final tenant (the property wasn't a fit) however the facetime was okay.  I highly suggest you facetime with them at the property, the property pictures don't always get the idea across. Also be clear about the location/neighborhood that was what out of state applicants had the hardest time with.  You can keep showing in the meantime so if things go south you keep moving. Notary is a good idea but you would need to have it fedexed so  you could see the seal rather then just scanned. 

    0Reply
  • Justin Phillip
    OP
    Austin, TX · Member since 2016 · 24 posts · 3 votes
    6y

    @Colleen F.

    Thanks for the advice with the seal/fedex !!

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    If you are screening them properly, that will enable you to verify their identity, income, rental history, etc. So I don't see why you need to see their face or facetime them.

    What you should be concerned about is anyone renting a property without seeing it in person. This can be risky because they may show up and decide your pictures made the place look nicer than it is or that the bedroom is smaller than they thought or they don't like the neighborhood or whatever. For this reason, I warn people verbally that their funds are non-refundable if they change their mind. I also have them sign this statement:

    MOVE-IN CONDITION. Tenants acknowledge the rental was represented through marketing materials designed to attract
    applicants for in-person inspections. Tenant were given the opportunity to inspect the rental prior to signing this Agreement. Tenant elects to accept the property in its current condition and/or they are waiving their opportunity to inspect, at their own choosing and for their own convenience. Tenant acknowledges they are accepting the rental in “as is” condition. Landlord shall not be obligated to clean, decorate, alter, repair, or otherwise improve the rental, either before or after the execution of this lease, unless agreed to in writing as part of this Agreement.
    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    0Reply
  • Nancy P.
    Naperville, IL · Member since 2018 · 330 posts · 357 votes
    6y

    I've done it twice.  First folks lasted a year, then found jobs in a state where pot is legal recreationally (they actually told that to me,  despite my strict no smoking of anything policy)- second set (in same property, interestingly enough),  have moved from rural South Dakota to a Chicago busy suburb.  They seem a bit overwhelmed.  Say their kids are sick all the time and the mom thinks it must be my duplex remodeled five years ago. I have a feeling they will hightail it back to South Dakota when the year is up.  So perhaps higher turnover,  I don't have enough data to say.  But no issues with paying rent on time.

    1Reply
  • Justin Phillip
    OP
    Austin, TX · Member since 2016 · 24 posts · 3 votes
    6y
    Originally posted by @Nathan Gesner:

    If you are screening them properly, that will enable you to verify their identity, income, rental history, etc. So I don't see why you need to see their face or facetime them.

    What you should be concerned about is anyone renting a property without seeing it in person. This can be risky because they may show up and decide your pictures made the place look nicer than it is or that the bedroom is smaller than they thought or they don't like the neighborhood or whatever. For this reason, I warn people verbally that their funds are non-refundable if they change their mind. I also have them sign this statement:

    MOVE-IN CONDITION. Tenants acknowledge the rental was represented through marketing materials designed to attract
    applicants for in-person inspections. Tenant were given the opportunity to inspect the rental prior to signing this Agreement. Tenant elects to accept the property in its current condition and/or they are waiving their opportunity to inspect, at their own choosing and for their own convenience. Tenant acknowledges they are accepting the rental in “as is” condition. Landlord shall not be obligated to clean, decorate, alter, repair, or otherwise improve the rental, either before or after the execution of this lease, unless agreed to in writing as part of this Agreement.

    Thanks, Nathan. Great idea to emphasize their funds are 'non-refundable' . What do you mean by "screening them properly"? They submitted an application via zillow - and their background check is clear, as well as a decent credit score. Is there any other check you would do to verify identity and history? They currently own their home (where they're moving out of), so I can't seek a reference from a previous landlord, and I'll be calling to verify employment.

    Does anyone rely on zillow applications for their rentals? If so, do you find that it is sufficient to qualify tenants?

    0Reply
  • Curt Smith
    Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
    6y

    @Justin Phillip I hate zillow apps and credit check, I use Erentpayment.com for apps, check, collecting rent.

    I only take if they have a bank account with 3x balance today. Ask for screen shot.

    Google the magistrate court of the county they currently live in, search both names usueallly, Last first no comma, experiment. I've caught problems the tenant check site missed.

    Call current and prior landlord you didn't mention.

    Call new employer, you didn't mention calling!

    Get pay stubs etc.

    Get the whole family on speaker phone.

    I agree with others site unseen of your house probably means they'll move to better suited location. They are just temp living with this move.

    My tenants stay 5+yrs. My #1 requirement at the bottom of the ad says must be long-term tenant multiple years. And then I asked that question multiple times while screening and then I verify how long they stayed in their current place must be multiple years. Their current job must be multiple years and multiple years at the prior job.

    1Reply
  • Account Closed
    Real Estate Broker · Columbus, OH · Member since 2019 · 119 posts · 151 votes
    6y

    @Justin Phillip This is actually happening quite a bit in Columbus at the moment with a lot of people moving here for tech jobs. I am getting application requests before showing requests. You are doing the right thing with all of your background checks, notarizing lease, etc. I am finding it more and more common with younger millennials (which I am one of them) and Gen Z’ers that they prefer less contact when leasing units. But seeing that you are in Austin, and knowing only a little bit about your market, I’m sure you have a unit in a desirable area and competition for rentals (as a renter) can be tough, especially for someone who doesn’t know the area. I wouldn’t be too concerned if you have done your due diligence on background checks, etc. I have a few units in Columbus’ arts district which is the most popular spot in Columbus, and these units don’t stay on market for rent very long so people are aggressive. I think this will become pretty normal in the near future, but agree with other posts in doing what you feel you need to do to be comfortable with it. Just want you to know that I’ve seen it to and have not run into problems with it (yet)! Best of luck!

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    Justin, I didn't mean to imply Zillow is inadequate. I don't know what their screening consists of. I just meant to say that your screening process and standards won't change based on where the applicant is coming from.

    A good screening will verify identity that can be matched to a government issued picture ID. It should provide address history which you can match to their application. It should include a full credit report with all judgements, collections, open accounts, payment history, and credit score. It will list criminal history but that is less accurate and often incomplete because some states don't publish criminal activity so you may consider a Google search of the applicant to see if anything turns up. You should speak with past Landlords, preferably the last two, and get an idea of how well they pay rent, take care of the rental, and abide by the lease.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    Also for those who say they are selling their home I check the tax roll to see if they actually own it.   Since I have only run across this locally not sure how easy it is to do out of area. At minimum I would run the address to see if it is listed for sale.  I have run up against people where this doesn't check out. I guess they thought I wouldn't check.  

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    6y
    @Justin Phillip if it is for a job change I would contact the new employer to confirm
    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    @Justin Phillip it is much harder to rent a property sight unseen. People have trouble and if they need to find a place to live, they may seem aggressive or desperate. That is not necessary a warning sign, as much as they need a home for their family. We would all act the same way in that situation.

    I have rented to people sight unseen a couple times. I did electronic signatures on the lease through a signing service. I required the down payment and first months rent as a cashiers check. I had them send me a photo of the checks and tracking number. 

    I wish I could tell you that out-of-state tenants have worked out well. In general when people move from out of state, they stay a year or two and move on. All of my lease breaks have been people who relocated! I would much rather rent to a local person, but at the end of the day, I accept first qualified.

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    I have rented to folks from out of state and I have been the applicant renting long distance. 

    I would take a deposit to hold the unit but let them know you prefer to sign the lease once they actually see the unit. 

    You can also just proceed. 

    I have always had excellent results as long as I screen. 

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    Want to add: what I have done in the past is do a (live) video walk thru so they can see the unit, ask questions etc 

    Also, if they are relocating due to a job etc you could suggest a local person come check the place out. 

    0Reply
  • Nicholas Darracq
    Carlsbad, CA · Member since 2018 · 24 posts · 50 votes
    6y

    We never allow sight unseen leases. They're often a nightmare. 

    0Reply
  • Anna Sagatelova
    Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
    6y

    You've received great advice so far. Yes, screen thoroughly and definitely contact the new employer for verification. If you are qualifying them on income, how do you verify it with new employment that will begin only after they relocate? Paystubs from their old job won't do you much good, so do get an employment verification letter from their new employer that includes information about their salary or wages, and if they are an hourly employee please ask about their expected number of hours.

    People do relocate more frequently nowadays and not everyone gets the opportunity to visit their new prospective neighborhood and house-hunt in person. When I was relocating for grad school, I was in that position, and in fact although I did spend 3 days going to apartment showings, I ended up renting a totally different place sight-unseen that became available after my visit to town. Being on top of the application process doesn't always mean it's a red flag, so just as long as you screen and check off all the criteria you'd normally verify for an applicant who has seen the property you should be in good shape.

    It is true that when people relocate from out of state, they rarely end up being long-term renters, but rather usually stay for one or two years. This will be their first property in town and as they get to know the area they will likely look for a better fit once they've had a chance to settle in and explore. There are exceptions to every "average" and "rule of thumb" so I encourage you to communicate with these applicants and learn more about them as people. At the end of the day, unless you are requiring a multi-year lease of every applicant, I would not use that as criteria to disqualify them because they are in a demographic that's less likely to renew for further terms...

    0Reply
  • Jennifer T.Pro Member
    Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
    6y

    I've rented to out of state tenants three times, whom I didn't meet until they came into town.  For one of them, his aunt lived nearby and she came to take a look at the place.

    It worked really well 2 out of the 3 times.  The two sets of tenants were great and both sets really liked the house, though neither one lasted for much more than their first year.  However, the reason each left had nothing to do with the property.  One of them unexpectedly bought their own home and the other set was a couple who broke up.

    The third time was just all around crappy, deadbeat tenants.  Meeting them in person first wouldn't have had any warnings for me.  Screening better would have!  But they came along in my early days and were a "lesson learned". 

    I don't see an out-of-state tenant as being a "red flag" and I would rent to one again.  People move for all kinds of reasons.  Including myself, at one point in time.  

    0Reply
  • Mark S.
    Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes
    6y

    @Justin Phillip I filled a SFH vacancy that I had a few months ago with a family moving from the west coast for a new job. Did not meet them in person, but screened on the phone, did the usual background checks, employment verification, etc. They are a very nice family and no issues.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free