Updated over 3 years ago on . Most recent reply
New Landlord Screening Potential Tenants
Hello BP family. I am looking for some advice. I am a new landlord who is house hacking a duplex. I am screening potential tents to move into the vacant unit. I have an offer that seems enticing and would like some guidance.
The potential tenants are moving from another state to Florida for a new job. They are offering to pay 3 months in advance in addition to security and last months rent. I would like to ensure their ability to pay the rent once the pre-paid rent period is complete, how should I go about verifying their new employment and income for their new jobs?
Most Popular Reply
Richard F.
#4 All Forums Contributor
#4 All Forums Contributor
- Honolulu, HI
Aloha,
If you are actually "enticed" by an offer, rethink your process. This is a business, and Fair Housing needs to be uppermost in your mind in every aspect of the business. Prospective tenants either meet, or do not meet, your standard criteria.
First, check local LL/Tenant laws to see what you are allowed to collect prior to move in. You are often limited by law to one month rent plus deposit equal to one month. Also, essentially allowing someone to "buy" their way in with advance payment can become a Fair Housing Issue if their actual qualifications are below your standard. Additionally, if they move out before all of the advance payments have been applied to actual rent, you will need to refund them any unused portion. You cannot just keep it as "damages" for early termination.
I always request a copy of their hiring letter, then follow up with the HR to ensure it is legit. Be sure to READ the letter, as sometimes they are conditional, based on the prospect completing certain items to satisfy the employer, which might include their employer's background checks. Lastly, very few jobs/job offers are "guaranteed", so make sure they have adequate savings to make it through any transition difficulties.
If you are actually "enticed" by an offer, rethink your process. This is a business, and Fair Housing needs to be uppermost in your mind in every aspect of the business. Prospective tenants either meet, or do not meet, your standard criteria.
First, check local LL/Tenant laws to see what you are allowed to collect prior to move in. You are often limited by law to one month rent plus deposit equal to one month. Also, essentially allowing someone to "buy" their way in with advance payment can become a Fair Housing Issue if their actual qualifications are below your standard. Additionally, if they move out before all of the advance payments have been applied to actual rent, you will need to refund them any unused portion. You cannot just keep it as "damages" for early termination.
I always request a copy of their hiring letter, then follow up with the HR to ensure it is legit. Be sure to READ the letter, as sometimes they are conditional, based on the prospect completing certain items to satisfy the employer, which might include their employer's background checks. Lastly, very few jobs/job offers are "guaranteed", so make sure they have adequate savings to make it through any transition difficulties.