All Forum Posts by: Bill Crow

@Jacob Daniels

As others have said, you should have credit standards and those should have objectively determined your answer already.

Setting that aside, I see 3 strikes in the limited info provided: (1) the BKs, (2) a sub-600 score, and (3) no rental history.

I have a number of curiosity questions in mind. However, the 3 strikes would have overridden my morbid curiosity and I would have moved on already.

@Billy Daniel

Yes, the basic requirements are in my ads. It should save some time in initial pre-screening, but people will still look for you to make exceptions. At least if it’s in writing, they can’t say they weren’t told or that you made it up to exclude them specifically.

@Antonio Coa

With $500K and a decent credit score (I’m assuming), you have a wide variety of choices. So many, in fact, that you could get analysis paralysis from trying to choose.

How active, and in what ways, do you want to be in your investing? You could be as passive as investing in a REIT or syndication, or as active as "driving for dollars" to find wholesale deals, or pick from any number of choices in between.

What will add to your knowledge base to carry you to the next phase of your investing progression? That may narrow your top choices.

Your choice is as individual as you are. Lots of great opinions and options in the replies. Best of luck in whatever you choose, and you’ll have support here in BP.

@Bill Crow

I have done some between 12-18 months in line with what Darren said above, to get my lease expiration back in line with peak season. That was to my benefit, and I considered market changes and annual tax valuation timing into the negotiation in those few instances.

@Darren Redfearn

In a rising rent market, there’s no win for you unless you set the rent well above market up front (not a likely scenario).

The implication of a loooong term lease is that the tenant gets a stable cost of rent in return for a promise to stay, saving you the joy of turnover.

In reality, it seldom works out. If tenant stays, your rent is locked and you can’t adjust to market changes. If tenant decides to leave, they can do so per the terms of the lease, and any “benefit” goes out the door with them.

Any residential lease longer than a year needs to have a real reason (and benefit) for the extended term.

@Kevin Norgaard

Here’s an idea… tell them you’re sending a licensed inspector for the final walkthrough since the inspector will know more about the construction standards.

@Ryan Bird

Let’s be clear on the difference between a pre-screening conversation and an application decision. You’re not approving or denying in the pre-screen phase. As others mentioned, what people think their credit score may or may not be accurate. They can be wrong about their income (for example, gross vs. net). Those errors can go either way, positive or negative. You are not (or should not be) making a decision without full, complete, accurate information.

In pre-screen, you tell them your standards and make it clear if standards are not met, they will be declined. Then THEY make the decision whether to apply or not. You do NOT want to be accused of telling someone in a protected class not to apply or that they are declined before even taking an app.

The application should be clearer to define. They meet standards and qualify, or they don’t. The app and its investigation are your documentary evidence that you followed your procedure for each and every applicant fairly.

I follow your desire to prequal candidates, and I’m not discouraging that. Nobody wants to burn time showing property to people who will not qualify. Just be clear about your standards and let the potential applicant lead the discussion whether to pursue the time and expense of a showing and applying.

@Will LHeureux

Did your costs of ownership go up? Taxes, insurance, maintenance? Yes, you raise rent. It’s good to be mindful of the cost of replacing a tenant, but in an inflationary market with rising property values, a reasonable increase may just keep you cash flowing similar to what you did last year. You don’t have to raise enough to match market, but why would you willingly structure your renewal with less cash flow than what was acceptable to you last year?

@Bill Crow

On re-reading the item, it seems like it’s intended to be an app fee, refundable if app not accepted and applied to security deposit if you sign a lease.

I still dislike the wording and the numerous typos don’t add confidence. I’d be embarrassed to present this as a legal document in a court of law.

Also, my apologies to Theresa for mistyping her name above. :)

@Fili Aguirre

Is this the complete wording in reference to the deposit? It’s not well written and leaves doubt. There should be a sentence that defines what the “deposit” is, and a place to state the amount. Without that clarity, you could have problems. I think Teresa interpreted it correctly based on the limited info provided.

Personally, I would be uncomfortable with the wording as is. In some states (including Texas, where I am), the term “security deposit” has a specific legal meaning and certain rules for handling. If this is an app fee, call it that and don’t risk confusing it with a true deposit. While “deposit” and “security deposit” are different things, why risk the confusion when other equivalent descriptions are available?