Investor · Atlanta, GA · Member since 2021 · 133 posts · 60 votes
Hello everyone!
My wife and I are renting out our home while we travel for work. We do month to month rentals and are on our third tenant. First two so far so good! I just finished screening our third tenant and wanted to know if I can legally question them on the items on their report?
Credit history is decent, no eviction history. There are 2 criminal records. Although any criminal activity is never good, these records just show some misdemeanors from 5 years ago - Driving on a suspended license and no seatbelt violation (which seems like a spiteful add on by the officer situation, maybe because of confrontational dispute).
I was thinking I could just briefly ask about the situation, if I have the authority to. If I feel uncomfortable about renting to him then I will deny. But if I don't deem it to be a detrimental situation, then I plan on moving forward.
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
@AJ Satcher
My best tenants have skeletons in their closet like this. Lol. I don’t ask them about it. I just ask if they have any evictions or felonies. Then compare what they say to their background check. My best ones have criminal records or terrible credit scores in the 500’s. One has a prior eviction and has been excellent. And I just took someone last month with a felony. He was honest and it lined up with what he said. My turnovers are zero because nobody else will take these people. Lol. But I’m ok giving people a second chances. God has forgiven me for past big mistakes in life I’ve made, that’s for sure! So I’m ok giving others a second chance. :)
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
3y
Absolutely..... but those offenses would have no influence to me. I only really care about felonies..... misdemeanor form 5 years ago? Don't care as long as everything else is good to go
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Be up front and ask them straight up what happened in that messy credit situation. People have a lot to say when it comes down to their credit, it's always never their fault apparently
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
@AJ Satcher
My best tenants have skeletons in their closet like this. Lol. I don’t ask them about it. I just ask if they have any evictions or felonies. Then compare what they say to their background check. My best ones have criminal records or terrible credit scores in the 500’s. One has a prior eviction and has been excellent. And I just took someone last month with a felony. He was honest and it lined up with what he said. My turnovers are zero because nobody else will take these people. Lol. But I’m ok giving people a second chances. God has forgiven me for past big mistakes in life I’ve made, that’s for sure! So I’m ok giving others a second chance. :)
Absolutely..... but those offenses would have no influence to me. I only really care about felonies..... misdemeanor form 5 years ago? Don't care as long as everything else is good to go
Yea I 100% feel you, I'm on the same page with you. I think this was a good question still for future reference you know? Especially as I scale up in properties, I want to make sure I'm avoiding any legal issues!
Rental Property Investor · FL · Member since 2016 · 271 posts · 92 votes
3y
I read your posted question and can assume you already made your choice to rent to them. Which I do like your observation and the decision to do so. I would do the same. I like to review the whole picture, example not a strong credit score, I then review the history on the report and can see what chess playing financial moves they had to do, (school system does not train us to master budgets, credit cards, etc, it is learned in the school of life) reviewing the history report you can see which bill account they made priority and which ones they didn't, and if they decided to not pay or skip few payments on non-essential accounts, that's okay with me. Along with good work history and income, confirming this with bank statements and tax returns.
Your observation is fair especially when it is 5 years ago, and the pattern stopped. But contrast to the same scenario let's say criminal records occur within a year or so that's risky for me because there is no space to know if it is a downward spiral vs lesson learned.
Rental Property Investor · Prince George's County, MD · Member since 2022 · 177 posts · 187 votes
3y
Great topic. I've started paying more attention to applicant's charges/issues, rather than the level of the crime (misdemeanors/felonies).
A recent applicant was upfront and admitted to some past issues in his background that were "nothing serious." A review of his report showed multiple restraining orders and disorderly conduct violations filed against him. While no felonies, his background clearly showed a pattern. No bueno. Luckily a more solid candidate came along.