some filters this rookie landlord uses to screen tenants

some filters this rookie landlord uses to screen tenants

Decatur, GA · Member since 2012 · 198 posts · 59 votes

When I first learned how to sell cars I learned that you just start talking about life dont talk about the car as you show the car you just engage the prospect.

well I have stumbled upon something similar when showing apartments

when I write my ad I am very detailed as to what is going on with the rental
i outline the deposit the rent some of the terms
what sort of application or background check will be done
and any issues with the apartment that may need attention in the future (this is important)

I add the issues because these will be concerns
and I want to see how the tenant handles the concerns

I instantly know by how a person can understand my concepts and my vision
if they dont get it or dont see the value I dont want them as tenants
if they cant comphrehend the deal or value I am giving them
then I dont want them as tenants

sounds a little weird right?
well think about it if you cant get a simple concept accross how are you going to
fare while dealing with more complicated issues down the line
you want someone who understands YOU
a good match for your personality makes for smoother sailing

ok lets look at what happened yesterday
I listed a house for rent that still needed some repairs the tenant can move in at a reduced rate on a month to month for three months while my handy man comes in on 6 different days throughout the 3 month period to do the repairs once the repairs were completed a lease would be signed if they still wanted to stay
and at that time a full background check would be done.

some people I met with could not understand what I was offering
some were asking questions like how soon would all the work be done can it be done before they move in can you do 5 of the repairs now
these people were immediately rejected.

another guy however
actually said he would pay more than I asked for once the work is done because he realizes I am renting below market and he wants to live here for a long time
he asked questions about whether the neighborhood was regentrifying

he was more concerned with the insulation then he was the cosmetics

this was my choice

apart from his excellent references he caught my vision and could take it to another level.

Also I make my application process a little cumbersome they have to email a request to my email address fill it out and email it back
the application period is 3 days and then i review so a person just cant waive money in my face and think that that will be enough

I can do this because my units look beautiful
so if you want it you have to work for it
and things that come hard are cherished

for my neighborhoods and tenant pool the whole computer thing is a challenge for some
challenge is good and competition is good

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Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
14y

Why not just fix the issues rather than explain them?

See this reply in the discussion

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  • Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    Why not just fix the issues rather than explain them?

  • Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    14y
    Originally posted by Steven Maduro:
    ok lets look at what happened yesterday
    I listed a house for rent that still needed some repairs the tenant can move in at a reduced rate on a month to month for three months while my handy man comes in on 6 different days throughout the 3 month period to do the repairs once the repairs were completed a lease would be signed if they still wanted to stay
    and at that time a full background check would be done.

    What if they move in and then after three months, they don't pass your background check? Now you have to evict them if they won't move.

    If your guy only needs to come in for six days to do repairs, why not have him work on the house for the next six days and then rent the house next week for top dollar in move in condition?

    I have more questions than answers about your system.

  • Milwaukee, WI · Member since 2009 · 203 posts · 50 votes
    14y

    I was wondering the same thing.
    Forgo one week of rent, have the repairs done, then get the full amount for 2 months, 3 weeks. As long as you are 10% higher in your market rent you are fine, but have less hassles and do not need to disturb the tenant.
    Also, background check after move in? The guy might be very understanding and eager to get in because he has some issues...

    Computer thing challenge: No, some challenges are not good. The "computer thing" is a challenge to most of my tenants, too. That's why I need to have my process work for them instead of making it harder for them. Making it more of a challenge doesn't help me to get people in, it may refer many good potential tenants to the neighbor's place who gives them a paper app that they are comfy with.

  • Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    14y

    Another thing that I've noticed is that tenants are not very forward thinking. (Probably why they rent and don't own). If you show them an incomplete house, they don't have the vision to see what the end result will look like. It's the same reason why a flipped house sells for so much more than a fixer upper that needs cosmetic work.

    If I show a house that's not done, it's usually to someone that's really interested. They've driven by and like the outside and the neighborhood. They want in by a certain date and want to see the house, even though it's not finished. What I do in that case, is show them the house and then take them to a finished house and tell them that this is how the other house will look when it's done.

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    14y

    Most of my tenants and applicants don't have computers.

    You're making life complicated for your self. There should be no need to "explain any vision". My requirements are simple - verifiable income 3X rent, no evictions, no felonys in the last five years, etc.

    Get the place fixed up, then rent it. Having the handyman spend six days of the course of three months is crazy. Good tenants aren't going to live in a place with issues for three months. A good handyman isn't going to spread a weeks work over three months. Fix your process. SCREEN YOUR TENANTS BEFORE THEY MOVE IN! And just do things the easy way!

  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    14y
    Originally posted by Steven Maduro:
    ok lets look at what happened yesterday
    I listed a house for rent that still needed some repairs the tenant can move in at a reduced rate on a month to month for three months while my handy man comes in on 6 different days throughout the 3 month period to do the repairs once the repairs were completed a lease would be signed if they still wanted to stay
    and at that time a full background check would be done.

    No offense, but that is a terrible idea. As Rob K mentioned, why not just do the repairs before the tenant moves in and avoid the hassel altogether? And I can't imagine what the benefit to you is for letting the tenant move in BEFORE you have them sign a lease agreement or do a background check.

  • Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    14y

    Steven - your whole process seems arrogant. You're running a business. Yet you act like you're running a charity (and even clients of charities deserve more respect). Any good tenant will want to know if you're a good, responsible and responsive landlord just like you want to know if the you're dealing with a good, responsible and responsive tenant. You're making this thing too one-sided as if the tenant has to do all of the 'show and prove' and you don't. If I was looking to rent your unit I would reject you long before you rejected me.

  • Decatur, GA · Member since 2012 · 198 posts · 59 votes
    14y

    Wow ok I caught all of it
    thanks for the input

    I am a rookie so part of what I am doing is experimental

    the reason the repairs are going to spread out is because
    I do not have the money I bought two houses at once cash one of the houses has the stipulation that I must occupy it so I had to rent my house that wasnt completed

    I did the renos on my other property with my GC and my sole tenant stopped paying her rent so I ran out of cash to do everything.

    I needed to bring in cash quickly so I came up with the idea of renting the house for a lower price a steal of a deal until the repairs were done.

    so four properties no income

    I just rented one duplex yesterday
    and got someone on the fixer upper at a reduced rent rate of 350 per month. He is thrilled and thinks he is getting a phenomenal deal since the neighborhood is in gentrification he feels he wants to stay for a few years

    Also you have to understand also that the kitchens and baths and living spaces are way above grade for the area
    water fall faucets, laminate flooring, deep sinks
    glass back splashes tiled floors in bathrooms
    rain shower heads washer dryer hook ups
    and the rent is ultimately on par or slightly less than the neighborhood so
    I feel I have the right to be selective
    (that is my arrogance talking)
    so to address that

    as far as my process seeming arrogant

    I have been accused of being arrogant before so I wont be mad anyone for saying that.

    but I am genuinely a nice caring person who will bend over backwards for my tenants

    so i may be a little arrogant but I will jump through hoops for them just like I am expecting them to jump through a few hoops

    I will say I am humbled by all of the solidarity against my plan
    so I wil re think it
    I have much to learn and this is my first venture into this game
    I am doing it solely on instinct and my intuition

    so thanks for all of your feedback everyone I am positive it all came from a place of love and caring

    Just a side note I am so laid back and easy going that sometimes people tend to take advantage of my kindness so part of what I do is make sure the people who I have to interact with have some integrity and moral character
    so that I dont have to be a bad guy when they stop paying their rent because they somehow think they can get away with anything and they push the envelope until I have to show my teeth

  • Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    14y

    my analysis of the rant FWIW -

    as a landlord, you need to practice the 3 F's - friendly & fair but firm. 1st & foremeost - this is a people business.

    in regards to your upgrades, you just need to look at the competition & equal that. If all the others have washer/dryers, you will have to.

    I think some of the things you have is more in tune for a flip than a rental. you can do 1 thing over the top as long as it doesn't break the bank.

    You can go hog wild on upgrades when/if you sell the property.

    If you keep it clean & keep it fresh (paint/repairs), you will find a renter.

    Most important thing is to screen them. If you work as hard on your screening process (while still being consumer friendly) as you do on your rehabs, you'll be fine.

    K.I.S.S. concept, dude.

  • Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    You made a mistake by not having any reserves. Probably none of you solutions will look pretty in this case. Hopefully you can scrap your way thruogh this and come out on the up side if the risk you took. Hopefully your returns are high enough to justify such risk if you pull through.

    If the option is available, I'd think about using a credit card to fund repairs to get something fully ready before putting in a tenant. By putting tenants in unifinished units and not screening them, you are exhastebating your risk exponentially beyond what is already a very high level.

    Rember, one eviction can easily cost you more than 6 months of vcacancy.

  • Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    14y

    Brian Hoyt B-I-N-G-O

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