Qualifications for renters - list complete?

Question

Hi - our apartment is nice and ready to show this weekend.   I want to have a consistent list of renter requirements before we communicate directly with the three possible renters who have shown interest.  The goal is to get a high quality renter with good habits and excellent payment history (like everyone.)
Also important to fill the apartment before the end of the year.  
Thank you in advance.  What am I missing?

3 x income, proof of employment and permission to contact employer
recommendation from current landlord and excellent payment history for past 2-3 years
good credit history, no evictions or accounts in collections
no criminal associations or background without approval
permission to check employment, personal, credit and criminal history

pets on a case by case basis (quiet, good neighbors, good habits, not aggressive or aggressive breed)
additional pet cost monthly and additional pet deposit
bonus if move in Dec 15, second month free
includes cleaning service 2 times a month, no additional cost to renter
first level floors and bathroom cleaned
680 plus utilities, cleaning service included

each adult over 18 on lease needs approval
must provide access to cleaning person without delay or inconvenience
must submit payments by ACH debit or by means acceptable to property management company
dishwasher allowed with approval
show proof of renters insurance

Harry M. · Answer

Hey Kerry,
I agree with Mattie and Steve about the credit thing. You can inadvertently disqualify some good tenants by being too stringent on the credit requirements. If there are credit blemishes, I think the most important thing is to look at the nature of them and decide whether you think they tell you anything about the prospective tenants inclination to pay you or not.
For example, our best tenant so far had some credit blemishes. But they were four years in the past, and all concentrated in one period of time, and all medical collections. That told us that she had just hit a rough patch at that time in her life, so we didn't hold it against her. If a person's credit report showed an ongoing pattern, particularly any recent history of evictions, then it would be a different story.

Kerry M. · Answer

Thank you Mattie Covatch and Harry M.  It is reassuring to talk with persons successful in their business and think through the credit, inspections thing before making it rough on ourselves.  I showed the list to a property managment owner who said he used very similar criteria, except that he nixed the pets idea outright.    Which brings me to my next question... about PM Agreements.  I would appreciate your opinions on the few concerns I have about the agreement.

Mattie Covatch · Answer

Kerry M.

I wanted to add... I think it's fine to inspect the outside of the property and common areas whenever you'd like. I just don't think tenants should be subjected to monthly handyman in their apartment to look at the pipes. I'm not sure if handyman coming during the day could prevent pipe damage or a leak anyway? Most pipes freeze at night. Maybe they could, but I would minimize bothering the tenant with tons of inspections. Home warranties or insurance is really the way to go, in my opinion.

Mattie Covatch · Answer

Kerry M.

Good move with nixing the free rent month.

I'm not sure why a frequent (twice a month?) handyman check is necessary?

If pipes are spewing all over the house, you'll almost always hear about it from tenants. You could have semi-annual replacement of air filters, smoke detectors, and have the pipes inspected then. Include in lease that you do these things-- and be sure to follow through if you include them in lease, so you don't get some tenant's house on fire and trying to sue you for not replacing smoke detector batteries. I don't think the handyman checks/air filters should be more than 2-4 times a year, tops. Asking a tenant to submit to a handyman check would turn a lot of people off from renting, myself included. And, you would be spending a lot on handymen for little benefit. I haven't seen *that* many pipes freeze over the years in lived-in properties... and insurance or home warranties helps. Pipes that I've seen freeze do so at night, and they're very old pipes that weren't used much. Get good insurance. :)

I don't think a handyman check should really be that big a worry. 2-4 times a year, inspect the property for damages perhaps and change air filters/smoke detector batteries.

I also don't think maid service is worth the risk or cost for you. I don't think it would attract many tenants unless we're talking very high end tenants (say, $4000-5000 per month or more). I think it'll be more hassle than it's worth to you. Tenants will call you complaining that the maid didn't come, didn't clean good enough, took too long cleaning, forgot to vacuum, spilled something on their floor, messed up their vacuum or broke a vase, moved the stuff off their counter, allegedly stole something, etc. And, what if the tenant says the maid "interfered" with their child, was inappropriate, walked in on them naked, etc.? What if the maid was assaulted or propositioned by a tenant? What if maid falls and gets inured on your property, say, in the shower or stairs? Too much risk. Too low a benefit for you. It's really not worth it. Outside of dorm rooms and million dollar condos with full-time assistants, I've never seen a rental with regular maid service offered as part of rent. I think you would be in for a headache there with complaints, risk, etc. I can't imagine maid service not being a pain, if not nightmare, for you. I can't see anything potentially good about it. Tenants will come along for you because you have a fair rent, nice property, and good location.

A one page "cheat sheet" for tenants might be something to include in a welcome package. It could include a few sentences about letting water drip during freezing weather so the pipes don't freeze, how to turn off the water to the toilet, and a few basic other things.

Kerry M. · Answer

Thanks Steve Babiak. I changed the wording to include non-employment sources of income.  A landlord with 100 homes has agreed (today) to put in place an agreement between us so that she acts as our property manager.  I plan to rely more on her sense of a 'good renter' than mine.  I will rough draft the renter qualifications to her as she is writing up the agreement.

Thank you to Mattie Covatch.  The free month of rent idea has been killed.  It's not a bad place;  I'm just in a hurry to move in the 
renter.  Yes, all persons should be listed.  How about substituting a handyman check of the water lines if they don't want maid service?

I'm so glad to be working with her.  I will know more after this weekend.  How do I look up her registration as a property manager in Maryland?  Is there such a thing?  (She mentioned licensing and insurance and has done this in the past.)

Thanks!

Mattie Covatch · Answer

Are the tenants required to use the maid service?

Some people prefer to clean their own places. I wonder if there's a risk of a maid taking/breaking something, and tenant trying to hold you liable. Or, tenant claiming made did something, took something, or whatever-- even if it didn't happen. Is there a risk here, and is it worth it to provide free cleaning?

Good credit history with no collections? I thought most tenants have collections of some sort, even if they're old collections? $680 rent is pretty cheap-- can't imagine tenants in that rental bracket having exceptional credit with 0 collection accounts.

Permission to contact employer and previous landlords is good, and to pull credit/background check.

Is 2nd month free rent necessary? Is it a bad area, pricey for the area, or something? Would 2nd month rent free confuse tenants? Wouldn't just leaving it vacant until January 1 be cheaper than filling it December 15, but offering 1 month free rent for January?

I'm unclear how you accept payments. It's ACH only? What if they prefer cash or money orders?

Those above 18 should be screened and on lease. But, shouldn't all persons living in property be listed somehow? If they have 8 kids and 2 adults, wouldn't there be max occupancy city/building rules or perhaps fire regulations? Or, can kids not be listed on leases? (I've never rented to someone with kids.)

Steve Babiak · Answer

If I give a "free month" it will be the LAST month of the lease, and contingent on all prior months rents and fees having been paid in full and on time ...

But I try to avoid such incentives - the only way I would consider it is if all the nearby competing units were making that kind of offer.

Keep in mind that income can come from more sources than just employment; things like disability, child support, alimony ...  And you want documented proof of income too, not just employment.

I would put all of your cleaning-related items together; one is separated a bit from the others.

Are you going to put a timeframe on some of the "no" items, or do you really mean "never"?  Collections might be a bit old, convictions for some crime might be a bit old ..

And when you mention the words "good" and "credit" together, you will be excluding the vast majority of the tenant pool!  Define that a bit more concisely ...

Qualifications for renters - list complete?

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