All Forum Posts by: Bill Crow

@Jeff Thompson See Michael J’s post “Another day, another no-show” and view Wesley’s response. Good info there. As was said in another reply, have a few pre-screen questions that you present to all who ask for you to take time to show them your property. They should cover your most common hurdles. For us, it’s income, pets, move-in time frame, and number of proposed occupants. I can whittle out half the inquiries with these, and another quarter (the “window shoppers”) never reply. That way, our time is spent only with those who are serious and potentially viable.

@Marisa Rowe I agree with Brandon that a listing agent CAN reveal highest offer with seller’s permission. Listing agent has a fiduciary duty to represent the best interests of the seller. If that goal Is best accomplished by sharing this piece of InformatIon, then they can. The National Association of REALTORS Code of Ethics is silent on the disclosure of highest offers specifically, but does say this: Standard of Practice 1-15 REALTORS®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, REALTORS® shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker. (Adopted 1/03, Amended 1/09) My apologies for typos - thIs Is a problem wIth the BP app.

@Devante Boll If you have a separate account for your rental business (and you should), your bank statements should be sufficient evidence. Deposits equaling incomimg rents and withdrawals for property expenses should be easily trackable.

@Stephen Gracia Jr You mention Auction.com and the opening bid prices they post. A couple observations about that sales venue: (1) Most of the houses I have observed there have seller‘s reserves. The teaser openIng prIce Is desIgned to build excItement and get bidders to compete. Houses don’t usually sell for that. Your market area may be different, but that’s been my observation in Texas and the Midwest. (2) You say the homes are in decent condition. Is that based on your personal walk-through, or just the auction site info? Don’t trust what you haven’t seen. I’m not saying the auction site is “bad”. Just helping you know what you are seeing when you view the site. I recommend the same diligence you would use with any other seller.

@Todd Powell I require the tenants to have it. If they don’t already have an insurance relationship, I refer them to my independent agent. I’m not aware of any reason why a landlord couldn’t build it into the rent and buy it, since the renter is the insured and gets the benefit of any claim payment. I’ve never had pushback from it. However, my portfolio is SFR’s in good neighborhoods, no multi-family (yet). Most of my tenants have pets, which is a good reason to require the liability. The cost is nominal ($10-15/month).

@Leopoldo Vazquez My properties are in Texas, and I require renter’s insurance. You protect your property, why shouldn’t they protect theirs? If they don‘t care about their possessions, what makes you think they will care about yours? If their belongings are lost, stolen or destroyed, where do you think the money to replace them will come from? (Your rent). If their dog bites someone, you want their insurance to take the first hit, not yours. Landlords are easy targets for lawsuits - why put yourself in harm’s way? Plus, the coverage for alternate accommodations would be a lifesaver if called into use. Being named as additional interest makes sure you are notified if the insurance changes or cancels. All in all, renter’s insurance reduces your risks at no cost to you. Why would you NOT require it?

@Shannon McEwan My two cents’ worth: I don’t think it’s your criteria that causes the pushback. It’s the medium - Facebook is a giant editorial page, where everyone is an expert and thinks their opinion is golden. If you are getting inquiries, Facebook or elsewhere, then there are people who at least think they can meet the standards. As others have said, your terms appear reasonable. Stick to your principles, get the right tenant, and by the time you’re ready for the next one, you’ll feel much more confident about the process. Good luck!

@Bill Crow One other thought... One of our principles when reviewing potential renters is that we have to be able to see what lenders call a “clear path to payment”. With the limited info we have so far in this case, there’s no clear path, which means there’s no deal.

Here's a situation I haven't seen addressed in Forums. I hope the wisdom of the Bigger Pockets community will have some experience, ideas and/or insights to share.

I have a few houses in the same neighborhood. Every time one comes available, I get a call from an individual who wants to rent the home on behalf of a group of individuals. I gather that she manages funds for adults who are in some form unable to manage their own affairs. However, details are sketchy, which is a big red flag. 

Our standard policy for all our properties has been that all adults age 18 and over who will reside in the home must apply, be approved, and be a signer on the lease. We also expect all tenants to prove sufficient income. As soon as I tell her those things, she disappears.   

As it stands now, I will continue to sing the same song, same verse every time the occasion arises. However, I'm wondering if I am missing an opportunity here, if anyone has knowledge of the potential pitfalls, or if there is anything that could be misconstrued into a legal issue. (Heck, anything can be misconstrued into a legal issue, but I'm curious what you think might pop up.)  If anyone has had similar experience, I would love to hear from you. 

Additional comments to help answer questions you may have: She has never said whether she intends to rent the home in the name of a company, nor has she offered any financial info on any potential guarantor. She just asks to see the home, and then when I get into my pre-qual questions, she has to disclose that she is not renting it for her own personal use. She's gone as far as using the "I'm renting it for my mom, and someone may live with her" line. However, when we state our expectations, it doesn't progress beyond the phone call.

@Harold Valencia Did you read the link Walter provided? You give 30 days minimum notice before lease end, and when the lease expires, it expires. You aren’t bound beyond the term of the lease. The article Walter provided was written from a tenant advocacy point of view, but even it says the landlord can give notice to non-renew.