Renting to a Instagram star?

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Renting to a Instagram star?

Eric Malone
Member since 2019 · 35 posts · 25 votes

I’m renting out my home and had a IG influencer apply. She makes great money 4 times what rent is a month. And her W-2 reflects that. She does have one account in collections but as second position. ( was a co-signer to her mother’s loan that went into collections)

What’s the play here?

I’m thinking passing due to the collections.

But what’s the thought about the job situation? Instagram influencer, what happens when there is no more influencing.

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Paul Smythe
Investor · Greenville, SC · Member since 2012 · 269 posts · 187 votes
5y

Too much personal opinion here about the legitimacy of being an influencer. Income is income. She sounds overqualified, don't overthink it.

26Reply
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  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Eric Malone I think you just answered your own question.

    We have been leaning toward folks with a voucher and/or secondary source of income...SSI/SSDI. People with jobs are volatile. 

    What type of location and rent?...just approximate...

    Best of luck

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    6Reply
  • Eric Malone
    OP
    Member since 2019 · 35 posts · 25 votes
    5y

    @Brandon Sturgill single family home located in Worcester,Ma rent is 2300/month

    1Reply
  • Mike McCarthy
    Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    @Eric Malone regardless of what you (or I) think about whether an Instagram star is a reasonable job title or not, if she’s making money, she’s obviously doing something right. I don’t see those jobs going away any time soon, and besides, we’ve all learned that no ones job is really safe anyway.

    I’d ask about the account in collections, but if it sounds like she’s good with her own money, I’d move forward.

    23Reply
  • Sharlene Mulchandani
    Cincinnati, OH · Member since 2020 · 299 posts · 476 votes
    5y

    @Eric Malone I agree with what @Mike McCarthy stated. If she's making good money and has reasonable proof of it, I would keep her as a tenant, because honestly I don't feel like Instagram influencers are going away anytime soon. I too recommend asking about the collections though.

    4Reply
  • Eric Malone
    OP
    Member since 2019 · 35 posts · 25 votes
    5y

    @Sharlene Mulchandani

    Thank you. I’m just hoping there’s job security in the influencer market.

    1Reply
  • Curt Smith
    Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
    5y

    @Eric Malone I recommend you add a requirement of min bank account balance of 2x rent. After all thats the cash to move in. You'd be surprised the many without that balance! It's a great way to screen.

    Fir this application id say yes if they'd put up 2x security deposit. Making for the bank balance needed of 3x+.

    Add a min fico of 600. Again few renters have 600.

    Then of course do tenant credit and eviction check. I use erentpayments.com for apps, checking rent collection.

    3Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    I would pass. I agree that Instagram influencers aren't going anywhere anytime soon, but it's not a job. All it takes is for her to say or do one wrong thing and all she "built" would crumble like a house of cards. One bad video, one word slip up...as fast and easy as it is to become Instafamous, the ride down is just as fast. Like a cyclone. Anyone with something in collections is a no, even with an excuse.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    I think you are over thinking things, sounds likes they are more than qualified to rent the unit.

    And in Massachusetts......source of income is a protected class right? Normally thats used to protect voucher holders, but any source of legal income would fall under that provision.

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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Depends - Can she influence you?  Or maybe put you on her IG feed?

    I'd be wary of her future income potential.  These influencers have about a half-life of 10 minutes (kinda like one shot rap wonders), so the ones that survive, I'll give credit to.

    2Reply
  • Paul Smythe
    Investor · Greenville, SC · Member since 2012 · 269 posts · 187 votes
    5y

    Too much personal opinion here about the legitimacy of being an influencer. Income is income. She sounds overqualified, don't overthink it.

    26Reply
  • Annette Schneider
    Investor · Pittsburgh, PA · Member since 2016 · 41 posts · 12 votes
    5y

    I would look at this as 'self-employment'. If she's managed to cultivate a following over time (2 or 3 years) its the same as someone self employed. Just look at the numbers. They either add up or they don't.

    You mentioned only one account is problematic. Sounds like she has other credit accounts. Have verified that she has enough income left to afford rent and utilities?   

    The debt issue is worrisome but its understandable that a child would help a parent and vice versa. If that's the only negative, we'd probably nibble. 

    1Reply
  • Tony Kim
    Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
    5y
    Originally posted by @Eric Malone:

    I’m renting out my home and had a IG influencer apply. She makes great money 4 times what rent is a month. And her W-2 reflects that. She does have one account in collections but as second position. ( was a co-signer to her mother’s loan that went into collections)

    What’s the play here?

    I’m thinking passing due to the collections.

    But what’s the thought about the job situation? Instagram influencer, what happens when there is no more influencing.

    I personally don't think it's any less secure than other more traditional forms of employment. You say or do the wrong thing at any job and you'll get canned, and your income source will dry up just as fast as a fallen IG star. 

    This isn't the same thing, but your situation kind of reminds me of when I rented my overseas property in South Korea to a super-model and her husband. Her source of income was her ongoing reality show and she planned to use my property to do a lot of the filming. She was the perfect tenant and even fixed up the place to make it look nicer on TV. 

    5Reply
  • Dennis Wayne
    Member since 2020 · 339 posts · 356 votes
    5y

    There’s a reason people have “ 15 minutes of fame “ -hard pass 

    2Reply
  • Nick Rutkowski
    Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    @Eric Malone

    She’s probably making more money than 90% of the people who commented on this post. Welcome to the new modern era where people make money influencing. Sign her, free advertising of your rental to her fans.

    18Reply
  • James Ma
    Burnaby, BC · Member since 2017 · 282 posts · 268 votes
    5y

    Depends what I think of her posts haha but semi serious. If she's the type who is pulling crazy stunts and pranks maybe less inclined to rent to the person as they may host a ton of social media parties at your place but they're going to make good bank so their income is typically pretty secure if she is a big star

    0Reply
  • Jason Smith
    Member since 2021 · 109 posts · 130 votes
    5y

    @Eric Malone check the Instagram does she have wild parties where they jump off the roof into the pool, and smash holes in the wall. If so no, otherwise yes. 50% of the jobs you considered "safe" a year ago, probably didn't turn out to be safe. You can probably follow her on instagram too and get mini-inspections along the way.

    2Reply
  • Eduardo D. Garcia
    Chino, CA · Member since 2021 · 1 post · 0 votes
    5y

    @Jonathan Greene

    I agree here many influencers get caught up with the money and sometimes make bad decision personally or in the house .

    0Reply
  • Stephen DeThample
    Real Estate Agent · Las Vegas, NV · Member since 2020 · 459 posts · 305 votes
    5y

    Instagram Influencers and YouTube Stars are marketing professionals.  If you are worried, look at the content she produces, if it would not violate any rules of the site, then you are good.

    Best Wishes!

    4Reply
  • Joseph Firmin
    Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
    5y

    Agree, don't overthink it. Income is income in today's gig economy. Additionally... if you wanted to get creative (as long as it is legal) - put a clause in the lease stating the influencer posts a glowing endorsement of your real estate business 1x every 3 months. :)

    3Reply
  • Aaron F.
    Investor · US · Member since 2017 · 71 posts · 80 votes
    5y

    The property is is MA. I would be “overthinking “ any potential tenant from what I’ve heard of that state. She’s already shown she’s ok with not honoring a debt. 

    0Reply
  • Cortney Arenstein
    Rental Property Investor · Katy, TX · Member since 2016 · 52 posts · 44 votes
    5y

    @Eric Malone Thanks for posting this. Sure opened up a healthy debate and something we will ALL have to think about from now on. I found myself flip flopping on my initial position multiple times as I read through the comments. “Wow good point!” And “Huh. Had not thought of that!” LOL. Social media influencers are not going away any time soon. It’s a growing industry. It’s marketing. Just marketing that is accessible to anyone with a phone. While I am leaning toward the “Pro” contingent, (logical arguments abound) I do think there is a reason we sometimes get a gut check like the one you are having. 100% of the times I rationalized myself into ignoring that gut check I have regretted it. One big question though—how does she have a W2 as an IG influencer? Wouldn’t she be self-employed and getting 1099s from brands that pay her to mention their products? Maybe this is just my ignorance about how IG stars are paid but I would have assumed they were bot considered “employees” by any company but their own? (Is she maybe paying herself a W2 salary from her corporation?) just curious.

    4Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    Maybe get a cosignor?

    0Reply
  • Eric Malone
    OP
    Member since 2019 · 35 posts · 25 votes
    5y

    @Joseph Firmin that is a great idea. Free marketing. Thanks for the advice.

    0Reply
  • Sofia Sharkey
    Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
    5y

    @Eric Malone Instagram influencers can make great money, I know a girl who makes 30K a month from that only. Those jobs are on the rise as business try to figure out more ways to reach their consumers in the virtual world.

    1Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    5y

    The job wouldn't worry me as long as she has documented income that she can prove. As an influencer she is in control of her fate while most other W2 employees are not. The credit would be concerning to me if she has a history of bills going to collections. What kind of bill was she sent to collections for? Is it the only mark on her credit?

    0Reply
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