All Forum Posts by: Wesley W.

I typically wouldn't look for a new tenant until about 6 weeks (at the outside) prior to the unit being available.

Check with your jurisdiction, but you are typically not required to take the first qualified applicant.  I try and get the MOST qualified applicant.

With these folks, I guess you can always accept a non-refundable hold binder (equal to at least one month's rent).  That would give them enough skin in the game to not stray.  However, be careful about written contracts that you might not be able to perform your obligation to.  For example, if the closing is delayed (or the deal falls through...).  These are not unrealistic things that could happen that could really make things complicated for you.

I think if you give advice you'd just be "feeding the stray dog" and might get pulled into something that is not your issue.  A Miranda-esque quote comes to mind: anything you say can and will be used against you...

"I'm very sorry to hear about your troubles with the previous owner, Mrs. Jones.  I really don't have any information or advice I can share with you, and it would frankly be really unprofessional of me to speculate on any past issues involving another party.  Hopefully you and I will have a much more productive relationship than your previous experience.  Here's to looking forward!"

I would research them and see what they are specifically. I personally don't accept anyone with a criminal record with crimes against people and/or property.  I suspect that's what these records are.  One of the first steps to mitigating your risk as a landlord is to assess that risk with as much information as you can garner.

If you are that adamant about signing these tenants (FYI I concur with @Russell Brazil and would never personally sign a lease that far out), have the seller sign your lease with them.  You will assume any leases in place at closing anyways, so that would be an option for you.

Here's what I did after playing the role of the Maytag repairman, waiting for someone to show up for their appointment and they never do.  I set up a system where I can filter out most people before a showing.  I used to like to have a lot of showings scheduled, but I quickly came to realize that tenant placement is more about quality rather than quantity.

It all starts with my ad, within which are several questions I request be answered in their response to my ad.  Here they are:

1.) Your first and last name, email address and phone number
2.) Total number of people that would occupy the apartment
3.) Proposed pets (size/breeds)
4.) Monthly pre-tax income for household
5.) Date you wish to move in

6.) Do you currently have enough funds to pay first month’s rent, last month’s rent, and a security deposit?

Next, here's a canned email response I use for everyone who answers my ad with the aforementioned questions answered.  If they don't answer my questions, I know they have not read the ad and are just clicking and "tire kicking" or they lack the intellectual focus for me to have any business relationship with them.   Anyhoo - here is the email response:

Thank you for your interest. We have a minimum income requirement to qualify for this unit (3 times monthly rent); based on your email, it appears you meet those qualifications.

Regarding pets, we allow cats and most dog breeds except for the following:

• -any breeds/mixes known under common parlance as “Pit Bull”
• -Rottweiler
• -Doberman Pinscher
• -German Shepherd
• -Alaskan Malamute a.k.a “Husky”
• -Chow Chow
• -Great Dane
• -St. Bernard
• -Akita
• -Wolf hybrids

Unfortunately, these are prohibited for insurance reasons. We require a one-time nonrefundable pet fee of $200 (per pet) that is good for your entire length of residency. We do not charge any “pet rent” beyond this initial fee. We typically like to meet your pets at some point in the process, too.

Our tenants’ safety and the peaceful enjoyment of their home is important to us, so we do a credit/criminal background check on all applicants aged 18+. Big concerns are bankruptcies/repossessions/evictions and crimes against people/property. If you don't foresee any major stumbling blocks (or, if you do, and would like to discuss confidentially - we can certainly do that), I'd be happy to set up a showing for you. Let me know what you think.

As a matter of information, smoking is prohibited inside our rental units.

If you decide that the apartment would meet your needs and wish to proceed with the application process, a “deposit to hold” binder equal to a month’s rent would need to be collected at that time. This holds the unit for 5 to 7 days until the lease signing, and once the rental agreement is signed this becomes the first month's rent. At the lease signing, you will need to put down another $1650, which will be the security deposit ($825) and last month's rent ($825). So, the total move-in costs (not including pet fees, if applicable) would be $2475, all paid prior to lease signing.

Also, we would need copies of the two most recent pay stubs and photo ID for all applicants aged 18+ (I can scan at the showing) to begin the verification process, which only takes a few days.

Since choosing a place to live is a very personal decision, please feel free to do a “drive by” of the property, located at 123 Main St, so you can get a “feel” for the neighborhood. (I will ask that, out of respect for our current tenants’ security and privacy, to please wait until your showing appointment before walking the property.)

If everything above is agreeable to you, let me know your availability and I'd be happy to take you through the apartment.

Thank you, and I look forward to meeting you at the showing!

Note how I reiterate the qualifying criteria as well as itemizing what the move-in costs will be.  I also suggest a drive-by so they are not unpleasantly surprised by the neighborhood when they to the showing, and just keep on driving by anonymously as I wait outside.  This email gives people yet another opportunity to self-select out of the application process based on my expectations and criteria before an actual showing in scheduled.

If they do request a showing, I send them this email:

Hi Sally,

How about Thursday at 7 pm? If that works for you, please reply to this email to confirm and I will add you to my showing appointment book.

Also, as a means of courtesy to both our busy schedules, please confirm via text or phone call at least 2 hours prior on the day of the showing to my cell phone (area code and number).

I’ve also attached our rental application. I will have hard copies at the showing, but if you print and fill them out prior to the showing, this would save us both some time should you want to expedite your application in the process.

I look forward to meeting you on Thursday!

If they have not confirmed an hour prior to their appointment, I send this text to their phone (which was required as part of their contact information I required in the response to my ad):

As I had requested in my email, you have not yet confirmed your apartment showing for this evening, scheduled for 7:00pm. If I don’t hear from you in the next 10 minutes, I will assume you aren’t attending and I will move on to my next appointment.

Using this system as dramatically reduced any wasted time I used to endure as part of the showing process.

I have all of these paragraphs set up so I just cut and paste as I get responses. (I have several versions based on how they answer the initial questions, but it's all at my fingertips for clicking and dragging into a response.)

Hope this helps!  It really has helped me.

That's a great question.  What does the management agreement (that they are no doubt referring to) say?  How did they get your name and address?  (I know it's public record, but this may add more information to your situation.)

If you are self-managing now, how did you not know they were clearing the snow?

This might be a question for an attorney in your jurisdiction.  Be careful they aren't able to place a mechanic's lien on your property.

In tenant-friendly NY, I've always found that a term lease only benefits the tenant, and not the landlord.  Specifically (as others have stated), it makes it very difficult to remove a tenant who is paying their rent but violating the lease in other ways.  If a tenant moves out early and breaks their lease, you as the landlord are still obligated to mitigate your losses by turning the unit over and marketing the unit again - something you'd have to do with a MTM vacancy anyways.  I've very seldom heard of a landlord collecting more than a month's rent as compensation for a broken term lease.

If a tenant wants to move but feels obligated to stay and not break your lease, that is also problematic.  I don't want anyone living in my properties that doesn't want to be there.  It just makes both parties miserable and strains our professional relationship.

A concern with MTM leases that some have is that tenants may leave in the middle of winter when it is hard to find a new tenant.  In upstate NY, I still find this a rare occurrence as most people don't want to move when the weather and temps can make it more of an ordeal.

I have only ever done MTM leases for my rental units and it has served me well.

Give her proper notice to vacate (as per your state's laws), then when she doesn't move out, proceed directly with a holdover eviction proceeding (I think also called an "unlawful detainer" in some jurisdictions).

Regarding when rent payment is due, what @Andrew B. mentions sounds right, but check your state landlord/tenant laws to be sure.  You could also ask a local attorney.  Since this is a professional you'll need at some point in your landlording career, it might be helpful to start forging that relationship now.

@Thomas S. gives good advice.  However, it's not likely the seller would be willing to get rid of him prior to closing.  After all, if you didn't close he'd have lost his tenant.  I would, however, insist on a signed estoppel certificate from this tenant prior to closing.

After closing, I would give him proper notice of termination (based on his lease), and then present him with a new lease for the market rent amount (or a little less).  We can all hold out hope for him accepting it, but all my money says he leaves, either willingly or via eviction, just as you've drawn up in your playbook.

Be prepared for the expense of an eviction, and proceed with it as necessary ASAP.  Do not delay or buy any BS he tries to feed you as a new landlord, or you'll be without rent for more time than necessary.  (3-day notice to pay or quit as per lease or NYS law, whichever is more generous)

You'd like to get him out during the spring so you can turn the unit over and rent it out before the fall, when it will be more difficult to find a good tenant as most people move in the spring/summer.

It will be rough for a bit without the upstairs rental income and/or the eviction expense, but you'll be glad you did in the long run.  Believe me.

My vote is for ripping off the proverbial band-aid.

I wouldn't articulate anything. In my jurisdiction (and most others, I think) unless you use information in a credit report to reject an applicant (FCRA), you DO NOT need to give them a reason. I would go so far as to say you SHOULD NOT give them a reason, as that just increases your exposure to a discrimination claim.