All Forum Posts by: Tom Ott

Hello Denita,

First off I would like to say congratulations! I know leaping into the REI world is not an easy task. You did it! It only gets better from here.

The first thing you need to do is of course inform the tenants that you will be taking over as LL/owner. If you would like to change the forms of payment you need to inform them. Since they have been tenants already and most likely have a lease that states what forms of payments they can use, you should still honor their agreement. If they were allowed to pay by personal check and/or certified funds, you should still offer to accept that. However, you can offer them electronic as an alternative. Have them sign a document saying they understand it is now an option. 

Then, when it comes time to renew the lease, you can inform them of all the changes you would like to make. You may pick how they are going to pay you.

In terms of push back, yes I have received some from tenants. Paying online can go either way for tenants. I have had some who are THRILLED to have online payments. They love the convenience (as do I.) On the other hand, I have had some who dislike the idea of paying online (for multiple reasons) and still want to pay by check.

From experience, it is nice to give them options. Encourage online as much as possible, but still offer other methods for those who want to pay the old fashioned way. You'll find in the end this will guarantee less push back and you will get you rent with out hassle.

I hope this helped! We see this sort of thing a lot with my company. Please let me know if you have any questions.

I'm happy to help, Ryan. I know these types of situations can be rough. We see A LOT of them with my company. Sometimes you just have to deal with case-by-case and see what happens. In the end the lease is what matters. It is binding and sometimes tenants forget that. It is our job to remind them of it!

Best of luck to you in the REI world!

 Hi Clayton,

All 3 of them signed a lease. If the two women do not feel safe, then it is a good thing they moved out. However, since their names are on the lease they do need to still pay their portion. Unless a crime was committed (check with them?) Even if the third is willing to pay the total rent, that is fine, but you still can't remove names just because the one is taking responsibility. 

When it comes time for the lease renewal, of course, only offer it to whomever is still living there. This is a complicated situation, but rent is still expected. Just because they moved out does not mean the lease is null. If they are seriously not safe than that is another matter completely (you might want to check to see what kind of tenant he has been) You might not want to renew with him if he is dangerous to the neighbors. 

Please let me know if you have any questions! We deal with this all the time at my company.

 Hi Ryan,

This is a difficult situation! Unless all 3 of the tenants know a person to sublet, I would not recommend that. The other 2 still live there and they might not want to live with a stranger.

Even if they all do find you someone, make sure you do the same background check you did with the first 3. Don't just take a new person because you really want to fill it up.

Lastly, I recommend you start off by reminding all 3 of them that the signed a lease and they all must adhere to it. It is still a binding contract and rent must be paid on time. Even if it is left up to the other two to come up with the rent, it is still due. The other two are just as responsible as the first for getting the rent to you. It doesn't matter who didn't pay, the problem is that rent was not paid in full.

Please let me know if you have any questions!

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 Hi Joey,

I'm happy to help! Yes some companies will give you a simple score, and others will give you a detailed report which will let you know how they got that score. (good standing accounts, collections, etc.) 

3x will most likely be good. Sometimes it's just simple math. You can estimate how much the bills would cost (gas, electric etc.) and how much they owe on their current accounts (you should see that in the report.) Add it all together and see if they make enough money to pay for everything. It can be a detailed matter and everyone has their own system.

Please let me know if you have any other questions!

 Trevor makes an excellent point! If you limit yourself to certain tenants, you might miss some very good ones. Pet owners can be excellent tenants too!

 Hello Chris,

Welcome to the world of REI! You'll find it very enjoyable. You might want to do some research online and see what the most common leases look like. You might also want to look to see what the laws are for your state. Not all leases can be the same in every state.

The first thing you will want to do is do background checks on your potential tenants. There is a lot that goes into tenant screening and you don't want to make any errors.

You will need to have them sign an authorization form, which allows you to look up their credit report and do a background check. Never simply look at a credit SCORE, but make sure you look at the whole REPORT. Someone could have a good score, but owe a lot of money on collections. (I know, but it happens)

Analyze their credit report and if you feel comfortable, do a background check and make sure their criminal history checks out.

Another key factor is employment history. Make sure they have a job of course! You also want to make sure they have had the job for more than a few days. Remember their ability to keep their job (or have a steady income) will directly effect their ability to pay the rent.

We always have them submit pay-stubs. 2 - 3 most recently ones give us the information we need. You want to use that information to check to make sure they have enough money to pay their bills, including the rent. We don't normally ask for a license until they are signing documents, but that might be different depending on your state.

Please let me know if you have any questions!

 Hello Kirk,

There are a lot of services out there. The best thing you should do it research which ones cost the least. Sometimes you do get more for what you pay for.

The best advice I like to give is:

Never simply look at a credit SCORE, but make sure you look at the whole REPORT. Someone could have a good score, but owe a lot of money on collections. (I know, but it happens)

Analyze their credit report and if you feel comfortable, do a background check and make sure their criminal history checks out.

Another key factor is employment history. Make sure they have a job of course! You also want to make sure they have had the job for more than a few days. Remember their ability to keep their job (or have a steady income) will directly effect their ability to pay the rent.

We always have them submit pay-stubs. 2 - 3 most recently ones give us the information we need. You want to use that information to check to make sure they have enough money to pay their bills, including the rent. We don't normally ask for a license until they are signing documents, but that might be different depending on your state.

Please let me know if you have any questions!

Hi Joey,

Great questions! First thing you need to do is have them sign an authorization form, which allows you to look up their credit report and do a background check. Never simply look at a credit SCORE, but make sure you look at the whole REPORT. Someone could have a good score, but owe a lot of money on collections. (I know, but it happens)

With regards to charging - it depends on what system you use. We normally charge exactly what the system requires to run a background check (Around $30 or $40)

Analyze their credit report and if you feel comfortable, do a background check and make sure their criminal history checks out.

Another key factor is employment history. Make sure they have a job of course! You also want to make sure they have had the job for more than a few days. Remember their ability to keep their job (or have a steady income) will directly effect their ability to pay the rent.

Always fill out a hard copy of the application. We let people apply online or in person. If they apply in person we simply input the data ourselves. It is always handy to have he hard copy when needed.

We always have them submit pay-stubs. 2 - 3 most recently ones give us the information we need. You want to use that information to check to make sure they have enough money to pay their bills, including the rent. We don't normally ask for a license until they are signing documents, but that might be different depending on your state.

Please let me know if you have any questions!