How are you preventing new tenants working the system w/ covid

Question

Im actively seeking new tenants right now for a property, since we are dealing with no evictions through 2020, how are you fellow landlords avoiding tenants who may (most likely not, but possible) try to take advantage of the system.

Of course job history, and proper vetting is huge right now, what are your tricks?

Bjorn Ahlblad · Answer

@Shawn Wainsely I think the biggies are employment security and integrity, or the lack of either or both. Up your screening game, make no compromises, increase your base criteria, increase your rent where possible, maybe now is a good time to look at Section 8 if you have not in the past. Hospital workers, and other essential services, retired folks who also have a pension, employees who can work from home, many government employees.

Patrick M. · Answer

In my market, A&B, a thorough screening will prevent the "taking advantage" tenant. You may not be able to screen out the tenant who could lose their job in 2 months, but a detailed vetting will protect you from the ones who will look to capitalize at your expense.

Here in NJ, the lease term doesn't matter- under the NJ anti-eviction law we must renew accept for certain reasons (non-payment, crime, etc.) That means that we can be "married" to our tenants for decades. It makes us some very, very good vetters.

Educate your potential tenants on how you will be doing a background check, that the mere filing of an eviction will stick with them. I have never needed to go into the details about civil judgments and how you will protect your rights.

Bottom line- I have found that if you do not slack off on your vetting and criteria- then the tenant sees that you are handling this professionally and you will not suffer fools.

Steve Morris · Answer

"Of course job history, and proper vetting is huge right now, what are your tricks?"

That's about what you're limited to. I'd like to kinda nuance if they're in a safer job (i.e. NOT retail, foodie or hospitality).

Other than that make sure you have good lease and follow the rules for any time they step outside the lease. You can still evict (assuming you've got a functioning court system) for stuff that is NOT non-pay.

Carl Millsap · Answer

@Shawn Wainsely in addition to what has been stated we are doing 60-90 day leases that go month to month after the initial term.

The eviction moratorium (s) generally state you can't evict for non-payment. In our area you can evict for not having a valid lease, or any other cause other than non-payment. By using a short term lease you have the option of not renewing the lease.

The tenant of course has the option to leave early but for us the risk / reward is worth it.

Of course I recommend you consult a lawyer to ensure this is a sufficient strategy in your area.

Bill Hampton · Answer

You can increase your rent to attract higher quality tenants and increase the security deposit to two months of rent.

Ayne C. · Answer

@Shawn Wainsely

Imo you just can't predict who will try to take advantage so just proceed as usual. Vet very carefully and please call 2 (not just one!!!) prior landlords and work references.

How are you preventing new tenants working the system w/ covid

How are you preventing new tenants working the system w/ covid

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