All Forum Posts by: Mark Nolan

Yup, 2 years of tax returns for me.  If they can't prove they make enough to qualify, then they simply can't rent from me.

I recently used Miracle Method and also liked the results.  $600 a tub and looks like new, I'll be using them again in the future for sure.

I use a paper/Cozy hybrid personally.

I prescreen over the phone, have my own hard copy paper applications, and part of process requires them to complete a Cozy background check.

If the application AND the Cozy screening check out, I rent to them and offer them the OPTION to use Cozy for payments.

Some older folks aren’t as keen on the idea of electronic payment methods and would rather deliver a check the 1st of the month, but most opt to just use Cozy.

My biggest misstep so far was allowing a rental agent rent any of my properties.

Bottom line:  No matter how strict their "standards" of vesting are, they are most interested in their own commission.  I do all my own pre-screening, all my own showings, and all my own credit and background checks now.

One agent sent me two comical candidates:

A couple with 2 cats (I have a no animal policy)

Both had credit scores in the 500's

Both worked as cleaners in kitchens.  Income unverifiable and less than 3x rent regardless

Asked to pay the deposit in installments

This is in an A/B area where my 2/1 is $2,100 a month

Second set was a couple with zero verified income

Their "employers" were dummy companies that didn't exist that used their own address and phone numbers

The wanted to pay for 6 months up front, straight cash

The agent assured me that this meant there was "no risk" because we'd get paid up front.  I can't imagine the challenging of trying to evict terrible tenants who have already paid 6 months up front.

Needless to say, both were hard passes.  I ended up with a 55 year old single male with a base salary of $150k a year.  Doesn't say a peep and always pays on time, I couldn't be happier.

Solid pre-screening is the key to success.  Get a good set of questions, ask everyone the same thing and hold them to the same standard, and keep record of every conversation you have.  Definitely worth the extra time to do the work yourself the RIGHT way.

I currently own two multifamilies in Watertown and I close on a multifamily in Brighton at the end of February.  The cost to get into these areas is higher than many, but the tenants you get are FAR stronger in these areas than what you'd find most other places.

Appreciation has been incredible as well.  Purchased my second multi in Watertown for $615k 15 months ago.  I've done some work to it, but nothing crazy, and it would sell in 24 hours, and over asking, if I listed it for $800k.

I like areas close to Boston where you'd attract young professionals and grad students.  Watertown, Waltham, Brighton, Allston, Somerville, and Cambridge are all areas I've explored.  Really have to find stuff off market if you want the numbers to work in those areas though, so start making some calls!

Just first and security for me.  I list my rentals myself, so no fee for the prospective tenant either.

It makes my rentals much more appealing.  I got $2,100 for a place for August 1st.  My tenant had to come up with $4,200 to move in.  Had I used a broker and asked for last month as well, they'd need $8,400 to move in.  Makes a big difference for me personally on how quickly I can rent one of my properties.

Interesting...

So I can force an applicant to pay a third party for credit check, like with SmartMove, but I can't force an applicant to pay me to run a credit check?  Seems like a bizarre and illogical loophole, but if it allows me to legally ask a tenant to pay for their credit to be checked, I'm all for it.  I'll look more into it to ensure it really is on the straight and narrow, but it's certainly worth exploring.  Thanks for the replies!

Yeah, my only hang up is...

One is illegal and one is expensive.  I would love to charge applicants the fee, but I'd rather avoid possible thousands in legal fees, so it's not really an option I'm interested in exploring.  

I could dump $35 on each applicant, but it doesn't seem financially viable.  I was interested what other MA landlords and realtors do that is both affordable, as well as in line with the law.

Hi all!

So in Massachusetts it's against the law to charge an application fee or to charge a prospective tenant a fee for a credit check.

So...

What do you do?  I really like SmartMove, but I can't say I'm interested in spending $35 on every possible applicant.  For all of my MA landlords and property managers, what are some ways to legally screen prospective tenants without losing your shirt in the process?

As others have said, location is a big part.  I have a multi in the greater Boston area under market at $1,850 and $1,950.  Both units are 2/1 with a single parking spot.

$1,300 doesn't exist here.