Potential tenant with no job experience

Member since 2019 · 4 posts · 1 vote

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?

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Sharlene Mulchandani

Cincinnati, OH · Member since 2020 · 299 posts · 476 votes

@Enrique Emanuel olivares I suggest renting to this tenant only if they have a guarantor. Ask the tenant if a parent would be willing to co-sign the lease. This way if your tenant ever fails to make their rent payment, the guarantor would be liable to make these.

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Wyatt Franta
Real Estate Broker · Vancouver, WA · Member since 2018 · 168 posts · 120 votes
6y
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!
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Stephen J DavisBusiness Member
Rental Property Investor · Houston, TX · Member since 2017 · 529 posts · 467 votes
6y
Do not lease to them until they have the job and you can verify it. You may also want to collect a double deposit. Stay on top of this one.
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Sharlene Mulchandani
Cincinnati, OH · Member since 2020 · 299 posts · 476 votes
6y
@Enrique Emanuel olivares I suggest renting to this tenant only if they have a guarantor. Ask the tenant if a parent would be willing to co-sign the lease. This way if your tenant ever fails to make their rent payment, the guarantor would be liable to make these.
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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
6y
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?
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Enrique Emanuel olivares
OP
Member since 2019 · 4 posts · 1 vote
6y
He said he was living on student loans. I will ask for a guarantor co signer then.
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@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.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
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.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
Check with their previous landlords and as others said get someone to co-sign the lease. If they have no work history and no job, how are they going to pay the bills?
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Enrique Emanuel olivares
OP
Member since 2019 · 4 posts · 1 vote
6y
Thank you guys for the help. I will do accordingly.
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