Prospective tenant - Foreclosed + hit and run history

[Steve E.]

Hello all,

Have a house listed in mls and a prospective tenant applied through his realtor. He saw the pictures from out of state and really liked the place and about to sign the contract.

Their background check and credit history my realtor performed came back clean. The husband has been working for a trucking company until last year and currently he works for himself and provided good income history.

My personal search revealed he was involved in a hit and run last year and luckily it was not fatal, but I am guessing he was let go of the company and started his own.

Add to the twist, zillow and redfin says their current residence was foreclosed in June but since it is so fresh not showing up on their records, the county record still shows their name.

When I asked him indirectly about the traffic violation he admitted it was an accident and I can certainly understand it was an accident and he made a bad decision not to stop and I am okay with it.

But the foreclosure finding has made me thinking and have not brought up to him. Other than this his background, credit history and the income portrays him as a perfect tenant and do not want to lose him.

I wanted see what you all think and should I take him or not?

Thanks

[Serge S.]

If I were so picky as to disallow prior foreclosures and bad credit I would literally have no prospects. In AZ if you have not been foreclosed and have credit and a job you are buying a home since its cheaper to buy then rent. FHA 3% loans and comped closing costs you can be into a decent $100k house for $3k out of pocket with a $750 mortgage. Why rent the same house from me for $1300? So you take the good with the bad and role the dice sometimes and focus on the other small things.

Self employed is always a risk but if all else is in place I'll usually bite. Ask for current bank statement and see if he has reserves. If he has 2-3 months of rent in the bank then that is positive. I also like to look at spending habits in the bank statement. If I see $20 atm withdrawals and no reserves I will usually move on. Another sign is looking to see if he has consistent overdrafts. Bank overdrafts are a clear sign of inability to manage your finances.