Would you rent to an applicant who didnt file tax returns

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Would you rent to an applicant who didnt file tax returns

Jane S.
Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 502 posts · 167 votes

This woman can't substantiate her earnings, since she didnt file tax returns in 2017 or 2018. Dont know if she ever did. She uses 2 last names, and her kids have a 3rd last name. No child support or alimony.  She says she makes $5K a month "net" and didnt know what her deductions came to. Hasn't been able to show pay stubs or records, and her supervisor is never available. Just one example of the time wasters out there. Her employer wanted me to pay $42 for them to verify her pay rate and how long she worked there. She's a RN so she must have some smarts. She also owes a fair amount of money around town, accounts in collection.

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

When I  read your posts I am always shocked that you know and care about each prospects marriage status, offspring status, etc etc. its odd.

Income? sure 

credit? Sure.... 

but familial questions? That goes against fair housing rules.....

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

    She needs to verify her income, so how she does it is up to her.  If her employer wants $42 for the forms (talk about a money grab), have her pay for it.

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

    When I  read your posts I am always shocked that you know and care about each prospects marriage status, offspring status, etc etc. its odd.

    Income? sure 

    credit? Sure.... 

    but familial questions? That goes against fair housing rules.....

    11Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Jane S. I like my tenants to be ordinary. This one would not be for me.

    8Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    I would not rent to her because she has a fair amount in collections around town.  I do not want to be added to her list.  

    For proof of income she should be able to show you deposits into her bank account if her work does automatic deposits.  I would guess they do as if she cashed a check she would know the net amount she got when she cashed it.  

    3Reply
  • Account Closed
    Member since 2019 · 1k+ posts · 1k+ votes
    6y

    So far she owes other people money and has no verified income. Either of those things alone would have me decline the applicant.

    7Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    My requirement is that applicants make 3x the rent in verifiable income.

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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    6y

    Why even consider her? Hopefully you've already developed and published fair-housing compliant screening criteria that includes verifiable income. She's already causing you stress and she hasn't even moved in yet- highly doubtful that will improve once you have a contract with her. Wait for a prospective tenant who plays by the rules from the get go- the ones who play games from the start will cause you nothing but headaches. 

    7Reply
  • Lendon Demorcy
    Rental Property Investor · Washington, DC · Member since 2019 · 2 posts · 1 vote
    6y

    @Jane S. No, I wouldn't rent to anyone who doesn't file their taxes in two years. I remembered having this issue in NJ 4yrs ago; when I pulled her background check reports, I saw that she owes IRS an additional 30K and plans to pay or settle that with IRS. So, in my opinion, it is a big NO!

    1Reply
  • Anthony Rosa
    Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
    6y

    Its possible that she's an RN that works for herself through a 1099 so everything is take home pay but that doesn't exclude the fact that she can't verify income or show submitted taxes.

    0Reply
  • Anthony Rosa
    Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
    6y
    Originally posted by @Mary M.:

    When I  read your posts I am always shocked that you know and care about each prospects marriage status, offspring status, etc etc. its odd.

    Income? sure 

    credit? Sure.... 

    but familial questions? That goes against fair housing rules.....

    "but familial questions? That goes against fair housing rules....." - Some questions may be against fair housing rules but all landlord applications need to know the number of people that will be living in the home and what relation are they to the responsible party, yes?  What if she's looking at a studio but wants to move in 5 people?..Imagine having a tenant with a different name than the one you rented to? Identity theft is a big issue

    1Reply
  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    6y

    How about when the IRS catches up and garnishes her wages for back taxes? 

    Then how will she pay rent

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    9Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    @Anthony Rosa yes, of course the kids would be on the application (if it went that far), but the OP has a track record of posting information about female prospects and seems to have information and conclusions that could only come from asking questions that are discriminatory in nature. 

    4Reply
  • Jane S.
    OP
    Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 502 posts · 167 votes
    6y

    I posted this as a kind of joke showing how completely unqualified people think they can get away with renting a nice place. She also lied about being evicted, she was "asked to leave" her last rental b/c she stopped paying rent and all other payments were 2-3 weeks late. The IRS garnishing her is very scary indeed. Can't argue with that. Thanks for the new info!

    2Reply
  • Henry Paul Trinidad
    Chicago, IL · Member since 2019 · 20 posts · 7 votes
    6y

    Depends though, but in my opinion, If I'm being careful, I might not rent there

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

    Unless someone is self-employed and their tax returns are a part of their verifiable income, I wouldn't know if they file taxes.

    Am I missing an important question to be asking?

    1Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    @Jane S.

    There is nothing about your post that makes me think I’d ask to verify anything at all. Everything you said shows she is not a good applicant. Just move on.

    2Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    6y

    After "this tenant can't substantiate her earnings" I move on to the next applicant. 

    Why even bother to expend energy on this issue? 

    This tenant is drama from the get-go. Let her go! 

    2Reply
  • Tyler Phalen
    Rental Property Investor · Ogden, UT · Member since 2019 · 24 posts · 13 votes
    6y

    @Mary Mitchell

    I don’t know about her other posts but those aren’t familial questions. They’re questions of supplemental income and do not go against fair housing laws.

    0Reply
  • Denise Camic
    Rental Property Investor · Harrodsburg, KY · Member since 2019 · 2 posts · 0 votes
    6y

    @Jane S.

    If they can’t verify income then I wouldn’t even look at it.

    0Reply
  • Thomas J Ellefson
    Property Manager · Madison WI · Member since 2019 · 5 posts · 3 votes
    6y

    Hi Jane,  In WI, we utilize a  Screening Criteria Form which advises every applicant of the needed information to approve their application.  If you use this criteria for all applicants, it really saves you time.  In this case, I would Not accept her application as she didn't submit the required information.  

    1Reply
  • Nancy P.
    Naperville, IL · Member since 2018 · 330 posts · 357 votes
    6y
    Originally posted by @Tyler Phalen:

    @Mary Mitchell

    I don’t know about her other posts but those aren’t familial questions. They’re questions of supplemental income and do not go against fair housing laws.

    You seem to have missed the part where she knows the woman is single, how many kids, their names....etc.

    0Reply
  • Tyler Phalen
    Rental Property Investor · Ogden, UT · Member since 2019 · 24 posts · 13 votes
    6y

    You’re right, that is definitely getting into an area that would get you into trouble. Thanks, I did miss that part 

    0Reply
  • Peter Anderson
    Real Estate Broker · Stamford, CT · Member since 2016 · 66 posts · 33 votes
    6y

    @Jennifer T. Not necessarily - sounds like this all came out through natural conversation when the applicant asked how to verify income.

    If you require income verifications its a good idea to list the acceptable docs on your application for predetermined consistency purposes.

    1Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    @Jane S.

    I have a tenant that doesn’t have any proof of income. I gave him a chance and haven’t had a problem. He got behind once, but got caught up. As long as I’m paid and they take care of my property, I don’t care what their situation is with their employment.

    0Reply
  • Jeff Grana
    Real Estate Broker · Falls Church, VA · Member since 2010 · 14 posts · 3 votes
    6y

    @Mary Mitchell it’s not against fair housing to require all of those familial details on the rental app. He cannot deny her on the basis of them, but his client (or he, if he’s the landlord) have every right to know who will be living in the house, and their ages if not adults.

    0Reply
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