Four Applicants, Two Credit Worthy

8 Replies

Four young people applied to rent one of my houses.  One has a great credit score, one has a rich father (Doctor) who pays his rent no matter what, and two have zero credit history, and both have erratic or very recent job hires.

I've already rejected one of the four due to no credit history and too short of job history, and the fact that the guy doesn't respond when I asked for follow up info.  The other non credit worthy applicant is the girlfriend of the guy with the rich father.  

Now, the rich farther and the guy with the great credit score have said they will help pay for the girlfriend of the rich guy.  She has zero credit, erratic work history, and also has not responded to multliple inquiries.

My solution is to offer to rent to the two who can pay, and reject the other two.  However, the two will cover for the girlfriend.  Sign up the  three in this case, and reject the one? Your thoughts?

@David Moore

These are all 4 people applying to rent together?

If the Dr and Credit Score guy are so hot on this girl, let them co-guarantee. Specifically the rich father.

How do they co-guarantee?  Do I write in the lease that the two will cover the rents for the girls if she does not pay?

Like this. Easier than explaining. Just use what you need in your own lease. I assume you are in Minnesota, but if not you can always Google "guarantor agreement" and your own state, I usually like to read a few different docs to sanity check against each other.

http://doranresidential.com/files/2015/03/guaranty...

http://www.highlandvillageduluth.com/DuluthGrnty.d..

http://liveat7west.com.s178470.gridserver.com/uplo...

If they co-guarantee, you could add language that they each pay half in the event of default.

Can the two good applicants pay the rent on their own?  If so, what I'd do is just put them on the lease.  Give them written permission to have the others as long-term guests, and that that permission can be revoked at any time.

Yes, they could end up being considered "tenants," but if you need to kick them out, you should be able to do it with a 30 day notice, as they'd not be on a lease, so the most they could claim, as tenants, is a month-to-month agreement.  

I did this with students who had boyfriends/girlfriends and they didn't want them on the lease.  This way, I can kick out the BF/GF and so can the tenant.  You keep the good tenants, and their roomies may come and go.

I never had a problem doing things this way in a building with lots of students.  If you put them all on a lease together, and there are problems, you're stuck with all of them - and they all have to breach the lease to get out of it.

I didn't get involved if the "friend" helped pay the rent.

Anyway, that worked for me.  I also just had month-to-month agreements, but I still didn't want a good tenant to think he/she had to move out in order to get rid of the "friend."

@Sue K.

 I already denied one of the applicants.  But the two remaining good billpayers have not decided whether to accept the deal.  Both are saying they will support the girlfriend if she cannot pay, so do I write the lease as you suggest, and if the girl does get to the point where she can pay, does it matter to me as the landlord?  This whole thing has been a real head scratcher for me.  To further complicate matters, in Minnesota, if all three are on the lease, and two only pay the rent, all three are eligible for renters rebates, even if the two pay all the rent.  I've found interacting with these young people to be rewarding and frustrating all at once.  They seem incapable of understanding we have no deal until a lease is signed.

Originally posted by @David Moore :

@Sue Kelly

 I already denied one of the applicants.  But the two remaining good billpayers have not decided whether to accept the deal.  Both are saying they will support the girlfriend if she cannot pay, so do I write the lease as you suggest, and if the girl does get to the point where she can pay, does it matter to me as the landlord?  This whole thing has been a real head scratcher for me.  To further complicate matters, in Minnesota, if all three are on the lease, and two only pay the rent, all three are eligible for renters rebates, even if the two pay all the rent.  I've found interacting with these young people to be rewarding and frustrating all at once.  They seem incapable of understanding we have no deal until a lease is signed.

 Yeah, this is why I wouldn't put her on the lease.  I'd give them a separate document that says they have permission to have her as a long-term guest, and that you can revoke that permission if there are any problems.  

Then, tell them they're free to support her.  But, she won't be an official tenant you have to deal with.

If they aren't mature enough to understand this situation, you may want to keep looking for another tenant.  They'll be too high maintenance, if they can't understand the difference between a landlord and a parental figure :-)

@Sue K.

Sounds like a great  idea.  Thanks for that!!

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