Registered: 1444142000 Posts: 1
Reply with quote #1
I have a duplex in Colorado Springs that I am renting out for the first time. I have had over 25 people look at it. Heard nothing but positive things.
I have received only 1 application and her credit score is 635. Her dad was willing to co-sign and has a great score, but between both of them, they have only about 80k in income, 40k in car debt, and 25k in credit card debt. So, I guess my first question is, should I rent to them? My second question is, I cannot count how many times people have asked me if I actually own the property and expressed disbelief because I'm so young. I have people often ask how old I am when viewing it. Anyway, I think this might be why I'm not getting any applications back. Thoughts? Is there a decent way to seem older or more professional? Thanks for your advice.
Registered: 1424031597 Posts: 125
Reply with quote #2
Hire a Real Estate Broker to find and sign you a tenant. Yes, you will pay a commission. In my area, it is 10% of the first year. The Broker screens the applicants and makes recommendations. You have final decision. The broker signs the contracts and collects the money due at move-in. You can than manage it yourself or hire a Property Management company.
The applicant with a credit score of 635 is not great. Her Dad as a co-signor is a good idea, but he will not pay quickly if he not living there. She will be a collection problem. I would rather pay a commission too find a good tenant. In the long run, it is money well spent. Prospective tenants will never see you. Your appearance and age will be irrelevant. Congratulations on acquiring investment property at a young age.
Registered: 1415137586 Posts: 313
Reply with quote #3
who cares if you are young.....wish I was...great decision to be a LL. just run as a business
I would rent to them
Registered: 1424031597 Posts: 125
Reply with quote #4
I respect Dishrodger and find most of his posts too be very accurate and well thought out. In this case, I respectfully disagree with his opinion.
Perception is everything. Just like landlords choose tenants, tenants choose landlords. This is their right. Obviously, the tenants do care if he is young. Even if their perception is wrong, it is their perception. If I were the LL in this case, I would not want too risk losing good potential tenants because of my own ego. This is a business, put the ego aside and do whatever it takes to get those good tenants. If this means hiring an agent, do it.
Registered: 1439063578 Posts: 15
Reply with quote #5
Firstly, hiring a property manager is a great idea, especially if you do not want the hassle of renting the place out yourself. They do all the screening etc, however that being said if you want to know exactly who is in your house, you may want to do it yourself. If you have a copy of your prospective tenants credit bureau look for the following: Look to see if any utility companies are listed as creditors, or if the issue with the persons credit is simply they were late on paying things. Sometimes financial issues occur, and its not best to rely on a credit score. Some things do have valid explanations. I would also look at how well you connected with the prospective tenant. You should also ask for really good references, and when they fill out your application form ask for Identifiable information such as their birthday , social security/SIN, names of 2 relatives that don't live with them.
Equifax and TransUnion are notorious for not correcting their databases when individuals go to them with issues. It sometimes takes a few years to fix a credit score. Also, look at the prospective tenants income, make sure you verify it, ie: If the person has been working check out the company they claim to work for and call the HR department to confirm they are actually an employee there, some bad tenants will provide a fake employment number and it is a friend of theirs that claim that they work there. I caution people who rely strictly on a Credit Bureau due to the way that Equifax and TransUnion compile it. I would also look at how cleanly these people are, look at their facebook profiles, and see what type of things they post on social media this will give you a sense of their character, also check their criminal record, some states you require their consent. Also check the local court databases for any civil suits against them. If you see that they have a criminal record, and they have been sued a ton, I wouldn't rent to them. If you gather all of this, you are protecting your investment. It can be a bit time consuming, however it will be well worth it in the end as you will have a long standing tenant who pays the rent on time and treat your investment like it is their own, with respect. __________________ D.Holden
Registered: 1479133218 Posts: 30
Reply with quote #6
If you are a first time landlord, I would highly recommend you to get a professional help. You'll probably need to consult a real estate lawyer to get a solid lease and learn the rights of tenants. And I agree that you should consider to hire a real estate broker that will help you to find good tenants. If you prefer to take care of some of tasks concerning rentals yourself, you can write this into your contract. A broker will give you as much or as little involvement as you require.