How to deal with self-employed tenant

7 Replies

A W-2 employee could lose a job tomorrow.  You only have the past to go on.  How did he do in past years?  His 1040's will have the answer.  

Any time there is risk, you simply hedge that risk by charging more up front. If you normally say we need first month's rent plus security deposit, you add last months rent. If you already do first, last, and security, you add another month and write into your contract that you may post your first eviction notice if the tenant gets into their last month's rent, etc, so that you can have them out before you are out any money if their job doesn't pan out. We would just say, "Hey, do to the nature of your job and the potential inconsistent income, we will need first, last and security deposit."

Randy  

He must be a drug dealer, do a screening and check background, this kind of people have a lot of friends looking for to live in your house, in these times were you don't know how the law will be tomorrow....will be better don't rent and sell.

Don't give your house to anyone who you don't know their background and credit history. Charge him $60 and get a company run the background for you.

I have a bad experience renting with my last tenant refusing to pay me rent (blaming the COVID) and she wanted to be living in my house free of rent because the government allowed to her... now I am out of business.

fwiw, the self employed are a large part of this economy....  now more than ever.... also be aware that a tax return will give you part of the picture.....  bank statements, previous landlords, credit and back ground checks are all part of the picture.  Also remember than any tenant could move tomorrow. Nothing can prevent that.  And finally - before charging more than one months rent for deposit I would carefully check your local tenant/landlord laws.....  Many Jurisdictions have limits on what can be charged.