WWYD?
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
     
     
WWYD? (by Liz [MI]) Aug 3, 2020 7:46 PM
       WWYD? (by Diane [MA]) Aug 3, 2020 8:05 PM
       WWYD? (by Allym [NJ]) Aug 3, 2020 9:47 PM
       WWYD? (by DJ [VA]) Aug 3, 2020 10:19 PM
       WWYD? (by Liz [MI]) Aug 3, 2020 10:38 PM
       WWYD? (by Deanna [TX]) Aug 3, 2020 11:11 PM
       WWYD? (by Robert J [CA]) Aug 3, 2020 11:27 PM
       WWYD? (by BRAD 20,000 [IN]) Aug 4, 2020 1:56 AM
       WWYD? (by WMH [NC]) Aug 4, 2020 8:23 AM
       WWYD? (by Liz [MI]) Aug 4, 2020 8:31 AM
       WWYD? (by John... [MI]) Aug 4, 2020 9:22 AM
       WWYD? (by Liz [MI]) Aug 4, 2020 9:47 AM
       WWYD? (by S i d [MO]) Aug 4, 2020 10:43 AM
       WWYD? (by Oregon Woodsmoke [ID]) Aug 4, 2020 10:51 AM
       WWYD? (by WMH [NC]) Aug 4, 2020 11:16 AM
       WWYD? (by Ken [NY]) Aug 4, 2020 11:58 AM
       WWYD? (by Liz [MI]) Aug 4, 2020 12:10 PM
       WWYD? (by Liz [MI]) Aug 4, 2020 12:17 PM
       WWYD? (by Liz [MI]) Aug 4, 2020 12:18 PM
       WWYD? (by 6x6 [TN]) Aug 4, 2020 12:41 PM
       WWYD? (by BRAD 20,000 [IN]) Aug 4, 2020 3:12 PM
       WWYD? (by Hammer [TN]) Aug 4, 2020 9:18 PM
       WWYD? (by Diane [MA]) Aug 4, 2020 10:51 PM
       WWYD? (by Cjo’h [CT]) Aug 7, 2020 9:07 PM
       WWYD? (by Cjo’h [CT]) Aug 7, 2020 9:17 PM
       WWYD? (by Jim in O C [CA]) Aug 7, 2020 9:22 PM
       WWYD? (by Jim in O C [CA]) Aug 7, 2020 9:24 PM
       WWYD? (by plenty [MO]) Aug 7, 2020 9:54 PM
       WWYD? (by yvonne [KS]) Aug 13, 2020 10:59 AM
       WWYD? (by Cjo’h [CT]) Aug 16, 2020 4:38 AM

Click here to reply to this discussion.
Click Here to send this discussion to a friend

WWYD? (by Liz [MI]) Posted on: Aug 3, 2020 7:46 PM
Message:

Would you take the tenants who are younger couple, both self employed, moving back to the area from out of state, good credit and income (self reported this far) who are offering to pay a year of rent up front (their parents are funding this) OR the older couple- one retired with guaranteed pension, who have offered $50 above per month in the rent? Younger couple has better credit, older couple has better income. We do month to month leases but do want long term leasers. Both report they want to stay for at least 2 years. Thx --70.158.xxx.xx




WWYD? (by Diane [MA]) Posted on: Aug 3, 2020 8:05 PM
Message:

I prefer MTM, on the in-case a tenant just does not work out. You take a full year of rent up front [not legal in every state] - you are stuck with a tenant who turns sour.

Depending on the dynamics of the property - any foreseeable issues with older tenants having issues in inclement weather?

Go with your gut, I say. --71.184.xxx.xxx




WWYD? (by Allym [NJ]) Posted on: Aug 3, 2020 9:47 PM
Message:

Old folks. Self employed is bad. I think they are lying about that because they have no proof of employment So mom and dad want to warehouse them in your apt until they can get their feet on the ground. Probably lost jobs in other state due to covid shut down. I would take the old folks. I hope the pension is guaranteed. Can you check on that? Let the couple live with mom and dad. --71.104.xx.xxx




WWYD? (by DJ [VA]) Posted on: Aug 3, 2020 10:19 PM
Message:

If the young couple has good credit & income, why would their parents be paying for a year of rent?

Something smells fishy.

I bet they won't be able to provide tax forms or anything to proove their income. --70.160.xxx.xxx




WWYD? (by Liz [MI]) Posted on: Aug 3, 2020 10:38 PM
Message:

Older couple r both 60 so not elderly. No issues with the property in inclement weather that any other house wouldn’t have...

We will require proof of employment and pension, we require 3 months of stubs. For self employed I’d have to do a little more research. Older couple one still works, other has pension.

Property is pretty competitive so this is the reason parents offered to pay up front. Parents came to walk thru and did FaceTime with kids who r still out of state. Parent stressed they really want them to move back so this may be part of it too. --68.62.xx.xxx




WWYD? (by Deanna [TX]) Posted on: Aug 3, 2020 11:11 PM
Message:

I normally like the elderly, because a lot of their youthful drama is behind them... they have their habits, and don't want them disrupted any more than they have to. Which is a good rule of thumb, but when it fails, it's usually pretty spectacular...

How stable is the elderly couple's history?

I'd be a bit leery about the stability of self-employment. It takes a certain kind of someone to have the discipline to be successfully self-employed. It's nice that they have their parents funding things up-front... but it also takes away an important card I like to keep in my hand that makes mtm worthwhile.

--96.46.xxx.xx




WWYD? (by Robert J [CA]) Posted on: Aug 3, 2020 11:27 PM
Message:

Just because someone will pay you a years worth of rent up front, doesn't mean you can keep it all if they move out early!

Yes you have a two good groups of applicants. So now it's time to review your findings. Which will stay longer in your rental, not a bunny rabbit hopping from one rental to the next , every year!

Which is the better fit for your building, if it's a multi-family?

Also, which of the two will sign a lease, give you all of the move-in funds and take occupancy the quickest.

One may want to start September 1st...one may move in tomorrow? --47.155.xx.xxx




WWYD? (by BRAD 20,000 [IN]) Posted on: Aug 4, 2020 1:56 AM
Message:

Liz,

*I* would pay rent for a time to get my kids back into my home town BUT make certain you understand the situation. Do they already have a going business? Just starting?

I would screen the parents AND have them sign the lease with the kiddos. Month 13 will come sooner than you think!

Reminder: Self employed income is not garnishable when things go south.

Pension: also not garnishable so we would not take them UNLESS one has a W2 job to garnish AND will be staying on that job for a while, not aging out.

Everyone says 2 years to push the LL's greed button.

BRAD

--73.102.xxx.xxx




WWYD? (by WMH [NC]) Posted on: Aug 4, 2020 8:23 AM
Message:

I like the older couple. 60 is not elderly. ;) --50.82.xxx.xxx




WWYD? (by Liz [MI]) Posted on: Aug 4, 2020 8:31 AM
Message:

@brad2000 thx for the info!

I like the idea of having the parents on the lease! When you say screen do you mean just financials?

The elderly couple does still have one person working so that’s helpful info to ask how long she plans to work! Thx --68.62.xx.xxx




WWYD? (by John... [MI]) Posted on: Aug 4, 2020 9:22 AM
Message:

Note that, in Michigan, if you take a pre-payment of a year's rent on a normal lease, you likely violate the law. In our state, pretty much any pre-payment is considered a deposit -- and anything over 1.5x the monthly rent violates our security deposit laws.

So, if you DO take the younger ones with pre-payment, note that you should re-write your lease to be legal with that sort of arrangement.

I'd likely take the older couple.

- John...

--67.209.xxx.xx




WWYD? (by Liz [MI]) Posted on: Aug 4, 2020 9:47 AM
Message:

Thx John!! Someone pointed that out earlier. I plan to consult w legal shield on this. :) --68.62.xx.xxx




WWYD? (by S i d [MO]) Posted on: Aug 4, 2020 10:43 AM
Message:

Agreeing with Brad.

Pensions are judgment proof. Hard "NO" there.

Self-employed are almost impossible to garnishess. Semi-hard "NO" unless parents co-sign. When you scree, I do credit and income for co-signers. That's all I need to know: do they gave the CAPABILITY and DESIRE to pay, based on their current incomes and payment history? Both must sign. In Missouri, a jointly owned bank account cannot be levied if a judgment goes against only one of the parties. So if Dad cosigned but his bank account has his wife on it, it cannot be seized/tapped. Your state laws may differ.

Keep this in mind: a BAD tenancy can end up costing you more profits than an entire year's rent. Many of us have found in the past that unless you get at least 14-16 months of on-time payments out of tenants you won't break even or make a profit once the damages, legal costs, lost rents, and vacancy all get added up. So paying a year in advance is no guarantee you will come out of this okay. That's why I need someone who has assets/funds to go after in case things go badly.

Regarding the max amount you can take for a deposit: just write the lease for one year, payable as one year, in advance. Then have it automatically convert to a year lease payable in monthly installments at renewal. That flies in my state, but it may not in yours.

Legal shield... Let us know how that turns out. From folks I've talked to in the past those guys have no expertise in things like LL/T law. All they can do is draft simple wills and notices and have zero clue about things like security deposits. In other words, they're worth about what you pay, which is not much. If they can answer your questions (correctly), that would be good to know since they are much cheaper than my attorney, whom I only email when I'm prepared to spend at least $50! --107.216.xxx.xxx




WWYD? (by Oregon Woodsmoke [ID]) Posted on: Aug 4, 2020 10:51 AM
Message:

Self employed but just moving to the area. What self employed business moves to a new area and still maintains the same income?

Their income is self-reported and I would not accept their word on it without solid proof. --98.146.xxx.xxx




WWYD? (by WMH [NC]) Posted on: Aug 4, 2020 11:16 AM
Message:

If I based my choice of tenants on garnish-ability of income, I'd have no tenants at all. NC does not allow ANY garnishment except by the government, for taxes or child support.

We have operated our entire LL life without garnishment and have survived just fine. --50.82.xxx.xxx




WWYD? (by Ken [NY]) Posted on: Aug 4, 2020 11:58 AM
Message:

The more i think about it i bet the kids are bums,anyone can claim to be self employed,big deal but it sounds good to unknowledgable,parents paying up front sounds more like they would rather pay to dump them on you than have them moving in with the parents.Sounds very fishy to me.What do they do that produces the same income elsewhere as it will moving back to hometown? --104.229.xxx.xxx




WWYD? (by Liz [MI]) Posted on: Aug 4, 2020 12:10 PM
Message:

SID - per our last lawyer consult we were advised NO leases beyond mo2mo. Not sure if the year rent would change thier advice here. We have had varied success w legal shield... they were great about 8 years ago when we went thru a tough eviction but In more years they told us we would need to pay an additional LL stipend which pissed me off bc we’ve been paying for years and never were informed of this change. I will def update Once I get with them. Thx for the helpful info on co signers!!

--68.62.xx.xxx




WWYD? (by Liz [MI]) Posted on: Aug 4, 2020 12:17 PM
Message:

The younger couple has a real estate photography business. The female has been in this business sometime out of state and reports 5k+ Mo. income. The finance is leaving his job to join her in the business. She reports they have secured enough clients here to keep the business going. It’s essentially a start up but the parents giving the first year gives us time to reassess their financials about 6-8 mos in ... they also report they managed the apartment complex they lived in out of state so know how to care for properties. I plan to pursue the app process with both applicants to dig deeper. Savings accounts will be a big factor for me which is self report but on our app. I would feel very comfortable having the parents on the lease... if the have $16k they are willing to fork over I’m guessing they are garnishable. --68.62.xx.xxx




WWYD? (by Liz [MI]) Posted on: Aug 4, 2020 12:18 PM
Message:

The younger couple has a real estate photography business. The female has been in this business sometime out of state and reports 5k+ Mo. income. The finance is leaving his job to join her in the business. She reports they have secured enough clients here to keep the business going. It’s essentially a start up but the parents giving the first year gives us time to reassess their financials about 6-8 mos in ... they also report they managed the apartment complex they lived in out of state so know how to care for properties. I plan to pursue the app process with both applicants to dig deeper. Savings accounts will be a big factor for me which is self report but on our app. I would feel very comfortable having the parents on the lease... if the have $16k they are willing to fork over I’m guessing they are garnishable. --68.62.xx.xxx




WWYD? (by 6x6 [TN]) Posted on: Aug 4, 2020 12:41 PM
Message:

Don't guess, know for sure.

After reading all of your post in this thread, I would definitely NOT rent to the young couple. --73.120.xx.xxx




WWYD? (by BRAD 20,000 [IN]) Posted on: Aug 4, 2020 3:12 PM
Message:

Liz,

Anybody with a cellphone can say they have a photo business. Check her website and see if it's a professional operation with GOOD photos, not glorified snapshots -weddings, families, senior school portraits...

My best advice: You need more applications to improve your odds of finding a great res. Keep marketing like a crazy person and find someone who is easy to approve - no second guessing, no what ifs...

BRAD --73.102.xxx.xxx




WWYD? (by Hammer [TN]) Posted on: Aug 4, 2020 9:18 PM
Message:

Nope on the kids. VERIFIABLE income is key for us.

We have run a photography business for 30+ years and there isn't much money in Real Estate photography unless you are in one of the high $$$$$ markets.

We were approached by a Top Realtor to photograph a $4 million home. Get this, she wanted to pay $75 for us to drive an hour each way, spend half a day photographing this home, and provide her with digital files with all rights. (this is about a $1600 job with single use rights) Her commission was going to be $120K and she was too cheap to pay $1600 to have professional marketing photos. Heck she didn't want to pay $100 ! --137.119.xxx.xx




WWYD? (by Diane [MA]) Posted on: Aug 4, 2020 10:51 PM
Message:

Bear in mind, there are 'moratoriums' in place on evictions in so many states - and can be extended on the whim of the governing bodies. Are you prepared to have a non paying tenant for as long as it takes? --71.184.xxx.xxx




WWYD? (by Cjo’h [CT]) Posted on: Aug 7, 2020 9:07 PM
Message:

Deanna,since I immigrated here some 60 years ago I was always self employed.I am now retired,Don’t want to do anything anymore,maybe a little cooking and watch cooking shows on TV to see what I did wrong................................ ........ charlie --32.214.xxx.xx




WWYD? (by Cjo’h [CT]) Posted on: Aug 7, 2020 9:17 PM
Message:

I’ve often taken a year’s rent and more upfront,it may be illeagle,but I still did it,remember the old saying “a bird in the hand ,is worth two in the bush” still applies,even today! ? ?............... charliee.............? ? ? well doesn’t it? --32.214.xxx.xx




WWYD? (by Jim in O C [CA]) Posted on: Aug 7, 2020 9:22 PM
Message:

I would choose the older couple and I believe they would probably be longer your term tenants. The younger couple might want to buy with the parents help in the year. --99.23.xxx.x




WWYD? (by Jim in O C [CA]) Posted on: Aug 7, 2020 9:24 PM
Message:

I would choose the older couple and I believe they would probably be longer term tenants. The younger couple might want to buy with the parents help in a year. --99.23.xxx.x




WWYD? (by plenty [MO]) Posted on: Aug 7, 2020 9:54 PM
Message:

Ask for 2 months bank statements to verify money in and out. $5k a month income should be documented on bank statements. And it doesn't matter if their expenses are $8k a month they are still not managing their money. Older couple for my chose. --99.203.xx.xxx




WWYD? (by yvonne [KS]) Posted on: Aug 13, 2020 10:59 AM
Message:

I would go for the older couple. Starting a new business in a new place sounds too risky to me. We have had great luck with our older residents staying in our properties long term. --70.184.xxx.xx




WWYD? (by Cjo’h [CT]) Posted on: Aug 16, 2020 4:38 AM
Message:

Didn’t seem to matter what age people were they all seemed to stay about the same length of time................charlie --32.214.xxx.xx



Click Here to send this discussion to a friend
Report discussion to Webmaster


Reply:
Subject: RE: WWYD?
Your Name:
Your State:

Message:
WWYD?
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: