All Forum Posts by: Bill Crow

@Steve Kenoyer

I have given my tenants (all renting good SFRs) gift cards at Christmas in the past. I thought it might build goodwill and reputation as I built my business. I really haven't seen much ROI from it.

Then today I got an e-mail from a tenant that literally thanked us for the gift card and told us they were BREAKING THEIR LEASE in the same e-mail!

Needless to say, we will be rethinking the gift card plan for next year. :)

@Donald L. Johnson II

Each of the major bureau providers has multiple scores for varying uses. There are “general” scores such as the Vantage and Beacon scores you mention (more on those in a minute), and there are scores that reflect higher predictability when you are applying for a certain financial product. Auto loans, mortgages and insurance are but 3 examples of products that have specific scoring models for their industries. A consumer’s score will vary based on the scoring model used.

To make it more confusing, there are now at least two scoring scales. The Beacon score uses what is generically known as FICO, which is a scale from 300 (worst) to 850 (best). Vantage was designed with a 1000 point scale with one of its purposes being to be a bit more relatable, sort of like grades in school. 900+ is your highest band, then 800-899, and so on. The difference in scales is the most likely reason why your Vantage and Beacon scores seem to be incongruent.

Add to all this the fact that your credit profile will re-score any time there is activity (pay a bill, open or close an account, have an inquiry, etc.), and you can see why your score can vary, even over a short span of time.

I kept this short, but hope it helps.

@Mike Davidson

I had a new tenant with the same issue. Their bank set a limit on first payment to a new payee. She made the rent payment over 3 days (she started early, so no late pay), and future months went just fine for full payments.

@Barry Cooley

Maybe I missed some facts but... it appears you are talking to the original seller? Is the buyer willing to sell? If not, then the seller will likely need to foreclose in order to selll to you. If the buyer is willing to sell, why not just finance the payoff yourself and get a clean title?

Am I missing something?

@Amber Saulsbury

In a super-brief nutshell....

As long as your properties cash flow, your tenants are paying your property tax. YOU pay you income tax. Does that answer your question?

@Chris Reynolds

I’m not seeing a when or where.

@Dan Gustavson

What screening tool are you using? Every system I have used notified me when the applicant completed the process and again when the results were ready, even if there was no credit. Something does not make sense.

In any instance, the prospective tenant does not control the process, YOU DO. If you got no report back, you cannot approve them.

Most likely a good reason to move on, as others have stated.

@Mike McCarthy

I don’t do short term lessees, but if I did, one item I haven’t seen mentioned yet is when that lease term would end. If someone came to me in June wanting a six month lease, that would result in a “Christmas present” that I don’t want. If thy wanted to rent one in December for 6 months, that might be of greater interest since I would get it back in peak season.

The big killer is turnover. Short leases mean faster turn and more cost. The incremental rent will NOT cover turnover cost. Proceed with caution.

@Juan P Gomez

You’re saying your cap rate is 7% with current debt. If you cash out (regardless of method), what’s your new numbers look like?

@Mauricio Parrarios

I don’t know if the rule applies to landlords, but I wouldn’t want to fight it in court...... The ECOA (Equal Credit Opportunity Act) states that lenders cannot disallow certain types of income such as pensions, alimony and public assistance, when determining the income of a loan applicant.

A pension is a reasonably reliable consistent income source. As long as your income meets the landlord’s income standards, the type of income doesn’t sound like a disqualifier.

If prepaying would ease a landlord’s mind, maybe offer first and last month up front.