Low income tenants & evictions/felonies
Those that rent to low income tenants:
If I were to institute a policy of no prior evictions and felonies during the screening process, do you think I would eliminate my entire rental base?
What are your standards when it comes to these 2 categories. I know some go back 5 years, and am not sure if this is because it is just impossible to find low income tenants w/out one of these two items in their past or if it is just a business decision to compromise and get a tenant into the property.
What are your thoughts/policies?
Most Popular Reply
No, you won't eliminate your entire rental base by requiring no evictions and no felonies in the past 5 years. I would also recommend setting a limit on the number and possibly the type of misdemeanors you will take. Would you accept someone that has a misdemeanor drug conviction and a theft conviction in the past 6 months? Or someone that has 10 misdemeanors in the past year? 3 years?
Personally, I won't take anyone with an eviction in the past 5 years; a felony, more than 2 misdemeanors, or any drug, theft, or burglary charges in the past 3 years.
That eliminates a LOT of potential renters. It takes discipline to allow a unit to go vacant when there are people with money in their hand that want to rent it. However, you're better off with a vacant rental for a month than one with a bad tenant.
I currently have 5 rentals vacant, which is normal for the number of units I have. However, I'm greedy enough to want the money that those vacant units represent. I could have already rented each of those units probably 5 times over, but I simply won't fill them until I find a tenant that is qualified.
Mike