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.

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  • Jessica Wygal
    Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
    5y

    If shes been doing it long enough to reflect on W2 I would do it. How much is the collection account? My only concern would be why hasnt she paid it off (even if it is Mom's)?

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    The only questions I would ask: does she meet the income-to-rent ratio and has she proven stability?

    If she's making $5,000 a month but it's only been for the last four months, then I would be cautious just like I would someone just starting out as a car salesman or REALTOR. But it's still not an automatic disapproval. You need to consider income, length of employment, credit score and history, Landlord references, etc.

    Rejecting her because "influencer" money may not last? I can tell you of hundreds of renters over the years that were employed at "stable" jobs only to lose their job for various reasons. Nothing is for sure and you shouldn't approve/deny applicants based on how long you predict their position will last because you don't know.

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  • Elise Marquette
    Lender · Frisco, TX · Member since 2019 · 546 posts · 270 votes
    5y

    Instagram is most definitely not going away. Especially with it being owned by Facebook. If she has a track record of employment history and making 4x enough money to cover the rent, she sounds pretty stable. The car collection is rough though- have you gotten more details on the situation and what happened exactly? 

    0Reply
  • Hernando Quintero
    Investor · San Francisco, CA · Member since 2020 · 31 posts · 22 votes
    5y

    In my opinion, influencers (the good ones) are just like entrepreneurs. People who take risk because they believe in themselves. I would give her a try. Maybe you can leverage your network through her audience, who knows!  Best of luck. 

    0Reply
  • Robert McAllister
    Real Estate Agent · Menomonee Falls, WI · Member since 2016 · 54 posts · 45 votes
    5y

    Be careful here for discrimination. As long as she has proof of income and stability, what do you care? Anyone can lose their job, it doesn't matter what they do. They could be a C-level executive and their position be eliminated. Same thing here. Make it a short lease if you're nervous, 6 months, or even go month to month with a 2-month notice to protect yourself.

    1Reply
  • Eric Malone
    OP
    Member since 2019 · 35 posts · 25 votes
    5y

    @Rob McAllister I was considering doing a month to month lease with first and security deposit. Good thinking.

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    Source of income is fine. As far as being a cosigner, the entire point of a cosigner is for her to pay if her mom didn't. Does she have other loans with good payment history on her credit report?

    1Reply
  • Melody R.
    Real Estate Agent · Los Angeles · Member since 2018 · 80 posts · 75 votes
    5y

    @Eric Malone We rent to people who are Social Media Influencers, I live in Los Angeles, so it’s not rare. I’m surprised how much money some of them make. Fair Housing laws does not allow us to discriminate based off of legal sources of income. Creating content and sharing it can be a real job. Since your applicant has proof of income (tax returns etc.) I would not dismiss her application because of her job.

    Someone mentioned that she can say the wrong thing and get cancelled. That could essentially happen to any person in any occupation. I know of someone who did something inappropriate at her insurance company and has been unable to find another job in the same industry for nearly a year, she never passes the background checks because that incident has tarnished her record.

    Also, I kindly point out that you knew her occupation before processing her application. Be careful accepting application fees and running someone’s credit who you have no intentions of renting to. It doesn’t sound like that was the case since your considering her now but still wanted to point that out.

    3Reply
  • Account Closed
    Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    @Eric Malone

    I'm not really sure what being an Instagram influencer has to do with anything. Screen the person as you would screen anybody else, and if they meet your criteria rent to them.

    1Reply
  • Jennifer Lyles
    Real Estate Broker · Atlanta, GA · Member since 2021 · 52 posts · 41 votes
    5y

    @Eric Malone We have run into this a few times and it has actually worked out great for us!  One piece of advice I would recommend is asking for 60 days of her bank statements to show proof of the deposits.  We all know W-2's can be fabricated but you need to know that she is consistently depositing funds and receiving money.  Good Luck to you!

    2Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    Personally, I only care about the fact their income is 4X the rent!

    These kids are literally redefining the meaning of work (or play) and here we are getting all judgy!

    4Reply
  • Jason Smith
    Member since 2021 · 109 posts · 130 votes
    5y
    Originally posted by @Robert McAllister:

    Be careful here for discrimination.. 

    I thought profession was not a legally protected class. I know a lot of people on here mention not wanting to rent to cops or lawyers because of them trying to nail you with every law if things turn sour. Can anyone that knows for sure chime in?

    1Reply
  • Spencer Cornelia
    Investor · Las Vegas, NV · Member since 2017 · 321 posts · 524 votes
    5y

    It's hilarious to me how many people judge the concept of social media influencer as if their career is any better.  People who can earn $100k+ per year on social media aren't going anywhere anytime soon.  In the social media landscape we find ourselves in, having a social media following is worth way more than some w2 job.

    This women is a media company not an influencer.  She earns that much because brands value her that much to advertise/affiliate with/etc.  Or even better, she has her own products and is making that much.  That's a six figure profitable business.

    What's funny to me is if she slightly altered her renter resume to say she's running a small business that has a net profit of $100k per year, you'd jump for joy at finding a great tenant, but because her "job title" is Instagram influencer, she all of a sudden has a high probability of not paying?  Lmao, it's the same career.

    2Reply
  • Eric Malone
    OP
    Member since 2019 · 35 posts · 25 votes
    5y

    @Spencer Cornelia I’m not judging anyone on there profession. I’m a older millennial myself and use the social media platforms to help promote my business and self in which I benefit from. I guess my concern is like mentioned above you say the wrong thing or post a picture that’s offensive everything could go away in seconds. Followers unfollow sponsors stop. Its different in a virtual world and that’s what concerns me. She might have a million followers today but the picture of a dog licking a ice cream cone could offend someone, now she down to a half a million followers and income is cut in half in the course of a day.

    today but post a picture of a

    0Reply
  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Eric Malone - Instagram influencers have w2’s? Is she working for a marketing company? I’m used to getting a 1099 for income paid from sponsors or ad agencies. Unless the w2 is her own company’s s Corp issuance.

    1. What’s her earnings history? (Tax returns or w2 over time?)

    2. What’s her rental history? (Landlord references?)

    3. Can you go tour to see the inside of where she currently lives?

    4. Are you satisfied with her credit score and payment history? Can you add a co-signer?

    5. No undisclosed animals, right?

    I’d think having a marketing professional as my tenant would be a big benefit if I could tap their resources for cheap or free to get my other properties rented faster (they know how to stage / put filters on photos to make everything more attractive)

    0Reply
  • Account Closed
    Member since 2019 · 1k+ posts · 1k+ votes
    5y

    @Eric Malone

    Zero shot. No guaranteed employment income. Open collection is a no go regardless of position.

    0Reply
  • Spencer Cornelia
    Investor · Las Vegas, NV · Member since 2017 · 321 posts · 524 votes
    5y

    @Eric Malone Ok let's do a fun exercise.  Find 1 person who was a victim to what you're explaining and I'll find 100 who are doing great.

    And how exactly is that different than any w2 job?  If a w2 employee says questionable stuff on social media, they'll lose their job.  What you're explaining is the influencer loses 25-50% of their income, and if a w2 employee does the same thing, they'll lose 100% of their income.  Who is better off?  I'd argue it's the influencer.

    I'm someone who is on pace to earn $100k+ in 2021 from social media (YouTube) and I can tell you...what it takes to get to this level is far more impressive than any w2 job.

    My post wasn't necessarily targeted at you but more targeted at all of the hilariously bad comments that I've seen in this thread.

    1Reply
  • Nihir Patel
    New to Real Estate · Chicagoland, IL · Member since 2021 · 3 posts · 0 votes
    5y

    @Eric Malone It seems income criteria is fine, having collection on credit report is concern here. You may ask 2x of rent as security deposit as a safety net.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Eric Malone:

    @Spencer Cornelia I’m not judging anyone on there profession. I’m a older millennial myself and use the social media platforms to help promote my business and self in which I benefit from. I guess my concern is like mentioned above you say the wrong thing or post a picture that’s offensive everything could go away in seconds. Followers unfollow sponsors stop. Its different in a virtual world and that’s what concerns me. She might have a million followers today but the picture of a dog licking a ice cream cone could offend someone, now she down to a half a million followers and income is cut in half in the course of a day.

    Lol ok boomer......DId you ask her to fax over those w2's?

    Collectively I've got 250,000+ followers on my various platforms and I say offensive things on a daily basis. I think a lot of you folks are really mistaken in how the world works in a post windows 95 era. 

    1Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    5y

    @Eric Malone Wow friend, you have a Golden Goose asking to take up roost and your questioning about the roost.....

    Look, I will be the first to say I don't really have a clue how being an "influencer" works as an income, or why 90% of the followers give a squat, but I am fully aware how those persons are EXPERTS of the NEW beast of marketing and advertising, social media and engagement medium. 

    I would give me left you-know-what to get such an opportunity as you have in your lap, a literal Golden Goose. I would rent to her simply because she meets qualifications and realty law does not allow or care for my opinion as to what is or is not a legit job, if it's considered an income by IRS than I too must. 

    The big question is how do you get her working for you and your brand? That would be my main focus, without doubt. I would be forging a strategic alliance BIG time. The value of what can be gained there outweighs years of rents. Just simply look at television and the massive shift to streaming, the birth of YT television etc etc etc, she is an established Pro at where everything is going not to mention the #1 cost efficient marketing medium.

    And get creative with it, ask her how her skills and techniques could be adapted to target and "farm" for target sellers? Buyers? Etc etc etc. You have an amazing opportunity in hand. 

    0Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    5y
    Originally posted by @James Wise:
    Originally posted by @Eric Malone:

    @Spencer Cornelia I’m not judging anyone on there profession. I’m a older millennial myself and use the social media platforms to help promote my business and self in which I benefit from. I guess my concern is like mentioned above you say the wrong thing or post a picture that’s offensive everything could go away in seconds. Followers unfollow sponsors stop. Its different in a virtual world and that’s what concerns me. She might have a million followers today but the picture of a dog licking a ice cream cone could offend someone, now she down to a half a million followers and income is cut in half in the course of a day.

    Lol ok boomer......DId you ask her to fax over those w2's?

    Collectively I've got 250,000+ followers on my various platforms and I say offensive things on a daily basis. I think a lot of you folks are really mistaken in how the world works in a post windows 95 era. 

    It is easier to disarm a thermo-nuclear warhead wearing mittens and welders goggles, doing a keg-stand and whistling the star spangled banner than it is NOT to offend anyone and remain PC in all things at all times. 

    So I am supposed to sort out a persons pronouns, how they identify, what personally offends or does not offend them........ "oh, ok, your pro-noun is them, and you self identify as a transgender lesbian vegan Mountain Yak ........ and my shoes offend.....". 

    1Reply
  • Eric Malone
    OP
    Member since 2019 · 35 posts · 25 votes
    5y

    @James Hamling thanks for your advice. I do agree that being creative to help grow my brand would be beneficial for the business. And your right about the IRS if they consider it a job so should I. I appreciate your feedback.

    0Reply
  • Mark Fries
    Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    5y

    @Eric Malone

    What's instagram?

    0Reply
  • Robert Beardsley
    Member since 2020 · 117 posts · 84 votes
    5y

    I dont believe you can discriminate on what job someone has. not to mention no job is secure. you can be high ranking manager and get canned. if she meets your requirements take her is what i say. the other way to look at it is if she is making 4x the amount of rent and rent is 2300 she isnt a small time influence if she for some reason looses her fire im sure she will have no trouble finding work in marketing after. 

    0Reply
  • Jaquetta T Ragland
    Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes
    5y

    @Eric Malone I would confirm how long she’s been an influencer. Does she have tax returns also? I believe I would proceed with her as a tenant but I would definitely do more research first - previous landlord, etc.

    0Reply
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