All Forum Posts by: Bienes Raices

How long does it take the IRS transcript to arrive (I heard 2 weeks?). Do you still ask for additional security deposit or is having the tax info & bank statements enough? thanks

I would go with the first group, perhaps putting them on a M2M or shorter than one year lease to see how they work out at first.

I wouldn't take anything the second group tells you at face value without checking it out. I just dealt with someone who tried to claim her ex-husband was at fault for her eviction. How is their attorney allowed to speak to you about their case? Did they sign a waiver authorizing him/her to? Also why do people in their 40s have such skimpy rental history? Did they own their own home?

I agree. And if they really earn that much, they should be able to put down an extra month's security deposit (if your state allows this) to cover for the bad credit.

I've started asking for an additional 1 month's security deposit for SE applicants because my experience so far has been that those in my area who claim to be self-employed tend to be fly by night.

However, I'm concerned I could also be weeding out good applicants who can't pay the extra deposit. Are the bank statements/tax returns reliable at all, or can these always be doctored? I know that they can request IRS to mail me an official copy of the tax return, but I've heard that takes up to two weeks, in which time the applicant may have moved on. Should I stick with my system of asking for an extra one month? thanks

Jon,
Her tenants are mostly Asian exchange students who tend to be very shy. They don't do real cooking--they just use the microwave (by their own choice). They are like ghosts, they spend most of the time out or in their rooms.

I have friend who shared his apartment with someone back in the '80s (I doubt he screened the person at all). One day my friend's VCR disappeared and my friend told the roommate to leave. The roommate did leave, but left all his possessions behind, including family heirlooms. My friend tried to contact the guy, but he was incommunicado. Finally my friend got rid of the stuff, but then a year later the man showed up asking for his belongings. He never tried to take my friend to court though. This is the worst "roommate" story I've heard, and I've had several roommates over the years and have known many others who have. The more likely issues are dirty dishes and noise problems.

What about "do I have to fill out an application and all that?" I've had a couple of these. Um, YEAH, you have to fill out the app!

Jon K.

You may be overthinking this. Since you'll be living there with them you'll be keeping an eye on them and they'll be less likely to do damage. My aunt has been renting a rooms in her house to students for years, and the biggest problems she's had is someone moving their girlfriend in without permission, and one tenant who was a party person. No serious damage, no no-pays, no psychos, as far as I know. I don't think she does extensive screening either. I'm not saying just take any warm body, but as long as the person has the income and you put them on month to month, and do the criminal screening, I wouldn't stress out over it. Most people renting a $400 room probably aren't going to have sterling credentials anyway.

I have some good tenants with bad credit (one is below 500). They told me they always pay their rent, just not their other bills, and I verified this to be true. They've been in the unit for almost 2 years now with few issues.

But, for future applicants, I'm wondering what types of creditors can come back and garnish their wages at some point in the future, decreasing their ability to pay rent? Can credit cards and hospitals do this? Garnishment is something I know little about. Thanks.

Why not leave the "Mexican" aspect out of the equation and make it simple? No credit history, no verifiable rental/employment, don't rent to them.

If that fits the majority of your applicants, then you have to lower your standards.

"does anyone want to give up"

I'm there right now. This is the worst group of dud applicants I've seen in my three years of doing this. But I'm not going to give up because I've put too much time, effort and money into this.