Potential tenant with no job experience

9 Replies

I have a potential tenant from out of town that recently graduated school and plans to get hired near rental property. No prior job experience with only student loans for pay statements. Would letter from hiring company be suffice? What would be the best approach?

Hi Enrique,

You will want to do your due diligence here especially given the current tenant protection laws across the nation right now. Once you have a tenant, you can't get them out. 

Get a letter, speak with the company HR department about this potential tenant, do whatever you need to do to ensure you will get your rent paid each month. 

Good luck!

Apparently this student went through college without ever having a job.  He may or may not have money handling ability.  OR a good work ethic.  Someone paid his way or he has a huge student loan debt.  You need to consider the student loan debt in whether he can afford to pay rent, utilities, etc.  He may have no idea how utilities get paid and the deposits that are required, so make sure you discuss everything with him.  Maybe also require that he shows proof of the utilities in his name prior to releasing the keys.  I do that where I rent as the deposits are $300 a pop.

Personally I would not rent to him until he actually had the job and started.  Situations can and do change fast and sometimes job offers are withdrawn.

Can whoever was paying for his college co-sign for the house rent?  

@Enrique Emanuel olivares You just need more info to make an informed decision and this situation is actually pretty simple. Require the applicant to get a letter from their employer regarding what they will be getting paid, how many hours per week they will be working, and when their start date is. Other than that just be sure to run their credit and background info also, income is only a part (a very important part) of the equation. 

Application screening is a method of determining the level of risk and the type of risk. In your case, the risks are:

1. No evidence of financial discipline.

2. No rental history.

3. No work history.

That's high risk. It doesn't guarantee they will be a bad tenant, but it's a pretty high risk. They may not pass my screening. Even if they did, I would require a security deposit of 2x the monthly rent and I would put them on a schedule for increased inspections to see how they maintain the rental.

Guarantor or cosigner is another option, as long as you are very clear with the Guarantor on their responsibilities and have a good agreement in place.