Tenant would have relative help pay

Tenant would have relative help pay

New to Real Estate · NH · Member since 2021 · 3 posts · 2 votes

I'm looking for a new tenant for a condo right now. One person came to see it, she would be moving in with her 9 year old son, but she hasn't had regular income. Says she's in the process of starting her own business. She came with her male relative who says he'd be helping to pay the rent (they currently live with him). He wouldn't live there though, which is important since the condo association has a two occupancy limit on this one. It's a studio not that big for a mom and kid, but they want to stay in this school district where the kid has all his friends.

I'm not sure if this is a situation I should consider or how I'd screen them? I usually ask for an employer reference and previous landlord reference, but she wouldn't have either of those. I do credit/background check too. Should I be getting the reference and income verification for the male relative? But then showing in the lease that he's not living there?

Also, I have no lack of great tenants applying. I sympathize with their situation of wanting to keep the kid in the same school. The rest of this town is pretty much just SFHs. The next town over has apts. They seem to be a family of Brazilian immigrants, helping each other out.

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Benjamin AakerPro Member
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
3y

I would decline this application. You should have your tenant screening criteria written down and you can show that to prospective tenants.

If you choose to accept a cosigner, then you need to screen that person and make sure they also understand they are responsible for the rental payments and property condition.

Without prior references, this person should be declined. Do not bend your rules for anyone.

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  • Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    NO.

  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    3y

    He's just co-signing. Lookup some of the suggestions here on BP for screening student rentals etc, and you'll find find lots of resources for how to do this properly. Anytime you're getting a non resident applicant treat it the same way, they'll co-sign and be responsible for the lease, but will not reside in the unit. 

  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Quote from @Becky Marsh:

     Says she's in the process of starting her own business. She came with her male relative who says he'd be helping to pay the rent (they currently live with him). He wouldn't live there though...

    What happens when her business fails? Most do within the first three years.

     Should I be getting the reference and income verification for the male relative? But then showing in the lease that he's not living there?

    You run full background, credit, and court records on ALL adults. Period. His name goes on the Rental Agreement as well, but add (Guarantor Only). You need to ensure the co-signer has more than adequate income/savings/equity to carry everything that is/will be outstanding.

    Also, I have no lack of great tenants applying. I sympathize with their situation of wanting to keep the kid in the same school...  They seem to be a family of Brazilian immigrants, helping each other out.

    You must take the emotion out of your decisions. Establish your screening criteria, and do not waiver. Also, stop referring to "kids", "family", "Brazilian immigrants" or anything else that describes individuals, as that can be viewed as discriminatory where housing is involved. They are all simply "applicants; people, tenants, adults, or minors".


  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    3y

    I would decline this application. You should have your tenant screening criteria written down and you can show that to prospective tenants.

    If you choose to accept a cosigner, then you need to screen that person and make sure they also understand they are responsible for the rental payments and property condition.

    Without prior references, this person should be declined. Do not bend your rules for anyone.

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y

    What you are describing is really just a co-signer. Nothing odd about that. Assuming the tenant has no income does the co-signer have enough to qualify? That would be something similar to when we rent to students - their parents aren't living there and the student has no money to pay the rent.

    It could work. You need to run credit & background checks on everyone who is responsible on the lease. You might just as well assume she has no income and will not have any income during her tenancy, so if not having a job is a deal breaker you should pass. You said you have no shortage of great tenants and this doesn't sound like a great tenant situation. 

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  • Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    3y

    @Becky Marsh if they don’t meet your screening requirements they don’t get a lease. Period. If the “relative” meets your requirements and is willing to co-sign the lease that may be a different story, but still a red flag for me. I would hold out for better tenants.

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