Tenant candidate with eviction record wants to pay 1 year rent

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Tenant candidate with eviction record wants to pay 1 year rent

Stephen Homes
Member since 2021 · 35 posts · 15 votes

I have a tenant candidate who has evictionS on his record. Currently he doesn't work and gets unemployment, is a student and his fiance who is the only one working. Two kids. He showed proof that he can pay 1 year.

What would you do if you were in my shoes? Everyone's opinion is welcome.

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Judy Parker
Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
5y

Unemployed, with a fiance, two kids and multiple evictions on his record? Why are you even considering this train wreck? Next!

30Reply
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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    @Stephen Homes Tenants believe LL's are blinded by money and they are convinced, sometimes rightly, that we will put down our guard when offered money in advance. I would not accept that applicant it will end badly for the LL.

    15Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    5y

    @Stephen Homes

    I would pass.

    4Reply
  • Roy Nash
    Rental Property Investor · Spokane, WA · Member since 2018 · 64 posts · 59 votes
    5y

    I recently had a unit open and had 1 person try to hide an eviction which I discovered in a screen and another one was straight up about it and willing to pay extra deposits or whatever.   I gave them a chance to plead their case and they told me I was the only landlord even willing to give them that chance.  However I was inundated with high quality, good credit score, good income candidates, with good rental history.   I chose one of these even though I could have got more money from the evicted tenant.  I trust my screening and the risk is lower even with less deposit with the highly qualified candidate.   I would pass on them.

    5Reply
  • Joshua Haynes
    Aurora, IL · Member since 2019 · 125 posts · 39 votes
    5y

    Pass

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    5y

    First, what does your local laws say, if anything, about evictions?   Second how far in the past was it? 

    Where I live we cant use evictions from 5 years or more ago to deny someone. 

    1Reply
  • Judy Parker
    Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
    5y

    Unemployed, with a fiance, two kids and multiple evictions on his record? Why are you even considering this train wreck? Next!

    30Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    @Stephen Homes be careful, this is how small landlords get destroyed in this business. A property management company would hard pass quickly due to risk. You should have a policy around evictions. People usually do one of three things:

    1. Hard pass (that is our policy)

    2. Accept with a risk mitigation fee. This is an extra fee paid up front, sometimes non-refundable. It could be 1-2 months worth or rent. Check what is legal in your area.

    3. Accept if older than X years with good landlord references. I have seen people do 5 or 7 years as typical.

    The trouble I see here is not just the evictions, but other questions. Does the unemployment and fiancés monthly income exceed 3X rent? Unemployment will run out eventually. Do they each have two positive landlord references? What does their credit report look like? What is their score and payment history look like over the last two years?

    Also be aware of some other risks of upfront rent:

    1. It is not legal in some states to collect advance rent. In other states, you can collect it, but it must be deposited in a separate trust account. Sometimes you even need to pay the tenant interest. Check your state laws.

    2. If the tenant breaks lease, they could still get their money back.

    3. Only accept cashiers check or money orders as payment. A bank check or ACH deposit can be cancelled after they move in.

    I would personally pass, but if you are considering, make sure income, credit and landlord references check out. 

    8Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y

    Eviction(s) with an S? The answer should be obvious.

    We do not accept anyone with an eviction on their record for any reason. If they get to the point of being evicted they are not the kind of renter I want at all. Most people, including landlords, will try to use reason and compromise before they have to resort to court systems. 

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    6Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Yea hard pass on this one.  If someone got to the point they were actually evicted and not just filed they got behind, knew they were not paying, and then refused to leave.  You used evictions as in more than one which means this person has a pattern of this behavior.  What if they get in and at the end of the year just don’t leave or pay.  The unemployment benefits can’t last forever and this whole situation screams bad news.  I also question with him not working where did all this money come from.  Could be stimulus and tax refunds but could also be questionable income.  In summary not all money is good money trust your gut and keep showing.  

    2Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    5y
    Originally posted by @Stephen Homes:

    I have a tenant candidate who has evictionS on his record. Currently he doesn't work and gets unemployment, is a student and his fiance who is the only one working. Two kids. He showed proof that he can pay 1 year.

    What would you do if you were in my shoes? Everyone's opinion is welcome.

    Eviction ✔

    EvictionS ✔

    Unemployed ✔

    "Student" ✔

    Unmarried to person he is living with who will be paying the bills ✔

    Has multiple kids with person he is not married to ✔

    Wants to pay rent in advance to blind landlord ✔

    AND YOU'RE STILL CONSIDERING HIM!!! 🤣 That's why I love this site.

    Advice: Run the f*** away from this person as fast as possible. Never look back. 

    9Reply
  • Stephen Homes
    OP
    Member since 2021 · 35 posts · 15 votes
    5y

    I want to thank everyone for their input. In answer to a few questions, he was evicted in 2018 and the court dragged for 10 months into 2019. Rental is in NJ. My understanding is that I cannot ask more than 1.5 month security deposit. I don't know if there is any exceptions to the 1.5 month security deposit. Also I am having difficulty finding information on how advanced rent can be collected. I will say NO to this candidate, but if you know the answer to my follow up question, please let me know. Thank you

    0Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    5y

    Usually you must put the future rent into an escrow account and draw on it every month. The bad is that it makes it harder to evict the tenant since rent will always be paid even as they are trashing the unit.

    In addition to my checklist above, add: Extremely tenant friendly / anti-landlord state. ✔

    2Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Stephen Homes:


    Correction to your post the court didn’t drag this out the tenant did.  They knew they weren’t paying and played the court system to drag things out as long as possible.  This person lacks morals and you need to run.  My thoughts on collecting that much advanced rent if you feel the need to that should be your sign to keep looking so there is no real need for an answer.  


    I want to thank everyone for their input. In answer to a few questions, he was evicted in 2018 and the court dragged for 10 months into 2019. Rental is in NJ. My understanding is that I cannot ask more than 1.5 month security deposit. I don't know if there is any exceptions to the 1.5 month security deposit. Also I am having difficulty finding information on how advanced rent can be collected. I will say NO to this candidate, but if you know the answer to my follow up question, please let me know. Thank you

    0Reply
  • Stephen Homes
    OP
    Member since 2021 · 35 posts · 15 votes
    5y
    Originally posted by @Adam Martin:
    Originally posted by @Stephen Homes:


    Correction to your post the court didn’t drag this out the tenant did.  They knew they weren’t paying and played the court system to drag things out as long as possible.  This person lacks morals and you need to run.  My thoughts on collecting that much advanced rent if you feel the need to that should be your sign to keep looking so there is no real need for an answer.  


    I want to thank everyone for their input. In answer to a few questions, he was evicted in 2018 and the court dragged for 10 months into 2019. Rental is in NJ. My understanding is that I cannot ask more than 1.5 month security deposit. I don't know if there is any exceptions to the 1.5 month security deposit. Also I am having difficulty finding information on how advanced rent can be collected. I will say NO to this candidate, but if you know the answer to my follow up question, please let me know. Thank you

    Thank you Adam for the correction. I missed typing the word "got" (court got dragged). The main reason I even have an empty apartment is that the previous tenant broke the lease and left (left 5 months prior to the end of the lease). At this time of year, NJ is still pretty cold and not many if any candidates. Although no tenants is better than a bad one :)

    0Reply
  • Matt Ziegler
    Rental Property Investor · Colorado Springs, CO · Member since 2020 · 433 posts · 284 votes
    5y

    This is a great example of why systems are so important. A well defined legal and fair rental criteria should be in writing. Check with your local laws, but things like, no evictions, minimum credit score, at least 2 references should be part of your criteria.  Once this is in place, it helps to pre screen your applicants/residents. Clearly define what you will and will not accept, and this question a slam dunk.

    Pass on this candidate and move on to another qualified applicant.
    Being vacant for a month is cheaper than placing a poor fit!

    Best of luck

    2Reply
  • David A Lisowski
    Rental Property Investor · Inlet Beach, FL · Member since 2018 · 199 posts · 111 votes
    5y

    @Stephen Homes

    Proving he can pay 1 year and actually paying are not the same thing.

    You think this dude is going to hold money in his account for month 11 of rent?

    Pass before he becomes your eviction problem

    1Reply
  • Bill Goodland
    Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
    5y

    @Stephen Homes nope nope nope

    1Reply
  • Herly C.
    Rental Property Investor · Houston, TX · Member since 2017 · 31 posts · 7 votes
    5y

    @Stephen Homes RUN

    2Reply
  • Account Closed
    New to Real Estate · CA · Member since 2019 · 22 posts · 3 votes
    5y

    Nope!

    0Reply
  • Joseph Mckenna
    Rental Property Investor · Scottsdale, AZ · Member since 2020 · 11 posts · 6 votes
    5y

    @Stephen Homes

    Probably could pass

    OR

    Maybe the candidate caught some bad breaks and is making his wrongs right.

    Pre screen him.

    Justify the funds align with his income capacity or savings.

    Validate references and prior landlords

    Include clause for 10 day notice termination

    0Reply
  • Lorin MonesBusiness Member
    Realtor · DC MD, VA · Member since 2017 · 20 posts · 8 votes
    5y

    @Stephen Homes Hard Pass. They pay one year and could be very hard to remove the next.

    [email protected]202-494-0110
    0Reply
  • Jaquetta T Ragland
    Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes
    5y

    @Stephen Homes there’s probably a reason he got evicted and a year goes by fast!

    1Reply
  • Jill L Ripley
    Real Estate Agent · Plymouth, MA · Member since 2019 · 19 posts · 6 votes
    5y

    @Stephen Homes I would check with your state, but in Massachusetts that is illegal.

    0Reply
  • Carlos Gonzalez
    Investor · Phoenix, AZ · Member since 2015 · 346 posts · 170 votes
    5y

    @Stephen Homes

    Ask for references.

    Sometimes life hits you hard and sometimes people deserve second chances.

    Ask other landlords for references to further DD him

    Check his Credit report maybe?

    0Reply
  • Saheed Oseni
    Rental Property Investor · Dallas, TX · Member since 2019 · 30 posts · 12 votes
    5y

    @Stephen Homes this will most likely end badly once that one year passes by. If you have other good applicants to consider I'd say pass.

    0Reply
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