Dilemma Regarding Potential Tenants - Would You Accept Them?

[Nir]

Hi All,

I have a vacant 3-bdr apt. A couple is interested in the apartment. here is what I found out about them:
- both have good credit reports
- both are on disability making enough as a couple to pay the rent
- both got great recommendations from their current landlords but.. their current landlords are the mother of the guy and the sister of the lady.
- apparently they were together in the past, then separated (hence have 2 different `landlords` currently), and now they are back together.
- Feedback from one of my tenants who met them (it`s a 4-plex) is positive - she got a good feeling about them said they are quite.
- the only gap in their application is they both wrote they dont remember the name and phone number of their previous landlord from 4 years ago (guy) and 8 years ago (lady). therefore, they only provided their family as landlords which I do believe is true, just unfortunate for me as I can not get more objective feedback from anyone on them.

Would you proceed with them? please consider the fact the area is not in a very good part of town.
therefore I can not expect a professional making 100K or something.

THANKS.

 

[gwasser]

QUOTE (investmart @ Oct 7 2010, 08:52 AM) Would you proceed with them? please consider the fact the area is not in a very good part of town.
therefore I can not expect a professional making 100K or something.

THANKS.

Sounds like you decided already. If you`re really concerned ask for some character references like a local community centre they attend frequently as a couple. But this maybe more about how comfortable you feel with them. Also, ask how long they were together prior to there latest break-up.

 

[Ready4Rent]

QUOTE (investmart @ Oct 7 2010, 08:52 AM) Hi All,I have a vacant 3-bdr apt. A couple is interested in the apartment. here is what I found out about them:- both have good credit reports (Not many on ODSP do good sign)- both are on disability making enough as a couple to pay the rent
- both got great recommendations from their current landlords but.. their current landlords are the mother of the guy and the sister of the lady. (Will they co-sign)
- apparently they were together in the past, then separated (hence have 2 different `landlords` currently), and now they are back together. (caution)
- Feedback from one of my tenants who met them (it`s a 4-plex) is positive - she got a good feeling about them said they are quite. (I find it hard to take a tenants judgement with out meeting applicant myself)
- the only gap in their application is they both wrote they dont remember the name and phone number of their previous landlord from 4 years ago (guy) and 8 years ago (lady). therefore, they only provided their family as landlords which I do believe is true, just unfortunate for me as I can not get more objective feedback from anyone on them. (Caution, get the previous address off the credit report and pull ownership, also visit there current place. )

Would you proceed with them? please consider the fact the area is not in a very good part of town.
therefore I can not expect a professional making 100K or something. (Dosen`t mean you have to take everybody

)

2 Cents

John

THANKS.

 

[Nir]

Thank You Godfried and John for the Great advice!
Regards, Neil

 

[invst4profit]

What great advice exactly did you take away from there posts?
Nine very experienced LLs, including a Para Legal specialising in representing LLs, on the Ontario LL forum advised you to pass on these applicants or at the very least suggest you demand to have the previous LL contacts and a guarantor. I did not see you respond back with a thank you for that advice.

Were you simply seeking positive support in regards to renting to these two applicants?

As we know you have had considerable problems with tenants in the past, likely due to your screening policies, and are likely to repeat your mistakes with this situation.

Also a couple on ODSP wanting to rent a three bedroom apartment should set off huge warning bells. I can in-vision all sorts of negative scenarios developing from this situation especially considering they have a sketchy history and are BOTH on ODSP.

My prediction is your first months rent will be the only one you ever receive on time, they will likley split up within 6 months, and will walk away owing you money which you will never see because you can not garnish there ODSP.
At the very least report them to ODSP when they don`t pay on time. Demand the government freeze there ODSP payments until they pay your rent.

Good luck. You will need it if you accept these applicants.

 

[gwasser]

QUOTE (invst4profit @ Oct 10 2010, 08:56 AM) What great advice exactly did you take away from there posts?

Nine very experienced LLs, including a Para Legal specialising in representing LLs, on the Ontario LL forum advised you to pass on these applicants or at the very least
Good luck. You will need it if you accept these applicants.

When I buy shares in a company, there are many reason why I may decide to do so.
[list type=decimal][*]I may buy shares because they have a good track record and have gone up already 40% last year. The statement: `Past performance is no garantee of future performance` comes to mind. In fact, when shares have already gone up quite a bit then chances are that the company`s merrits have already been included in the price and therefor the risk for under or non-performance has gone up substantially. I bought such shares and over the long term I made OK money.[*]I may buy shares because they have fallen dramatically while the only reason for falling appears to be that we`re in a bearmarket. There is the risk that I try to `catch a falling knife`. So maybe I should wait until prices stabilize. On the otherhand overall risk is now a lot lower than before the share price fell. Like Rickson9, this is the time to buy and you tend to make (often after some stomach sickening moments) excellent money.I may buy shares because the investment looks somewhat profitable and I like being a progressive and responsible member of society. I usually lose money in such cases. Sorry I don`t do story-investments anymore I have learned the hard way.I invested in recreational properties and confused my Belize with an investment. I lost my shirt![/list type=decimal]There is investing - being in business and there is being nice for the world around you. I have learned that investment/business in those cases comes first. Once an investment works out I can always give some of the profits back to society. Whether it is a landlord on a small scale, or billionaires like Bill Gates and W. Buffett. It does not matter, you cannot run a charity and a business as one. That does not mean you have to behave inhuman, but neither does it mean that you have to take on more risk than you have to. Greg is absolutely right - I wanted to say it more diplomatically because of the way your question was formulated I figured you had already made up your mind trying to be a nice guy.

You don`t have to be a nice guy. There are enough vacancies that other landlords may fall for this couple. You have to look out for number one and chances are that this couple will break up again if not soon, then very soon and you walk around without rent-checks.

 

[housingrental]

Greg - Why do you keep dropping your avatar?

 

[Sherilynn]

QUOTE (invst4profit @ Oct 10 2010, 08:56 AM) Also a couple on ODSP wanting to rent a three bedroom apartment should set off huge warning bells. I can in-vision all sorts of negative scenarios developing from this situation especially considering they have a sketchy history and are BOTH on ODSP.

I agree with this. A couple on a fixed income should only require a 2-bedroom at most. Why would they spend another chunk of their limited income on a bedroom that they don`t need? And if they do need it, then why? My first thought was that they could be inviting unauthorized occupants to share the expenses.

I always try to give people a chance and therefore consider all types of applicants, but I am also very wary of possible worst-case scenarios.

Regards,
Sherilynn

 

[invst4profit]

Godfried: Diplomacy, I don`t have that gene. Thankfully as I observe having it resulted in far more typing.
I also think too many on this forum are far to diplomatic in dealing with issues which may result in some making poor decisions.

Personally I believe if a applicant is of any risk at all they should be rejected. Ontario is far to pro tenant to take even the slightest risk going into a new relationship and novice LLs should be extremely cautious.
Applicants only get one chance to impress me and I am not easily impressed.

Housingrental: no more aviators just plain Greg.

 

[Nir]

Hi invst4profit,

Great advice does not mean they solved the problem. it can also mean John and Godfried raised a point or two I did not think about and this helps me make a better decision. there are also advantages to accepting this couple like the fact all other applicants so far have kids (so more people) and since not all units are sound proof/it is not a purposely built Plex (it is legal though), other tenants might benefit from accepting the couple. Also, if you can arrange getting cheques directly from the government that`s a good thing too. yes, it can change in the future but you still have their case workers contacts!
As oppose to your belief, I did not make a decision yet. In addition, I am not here to authorize you to make decisions for me. I appreciate your advice and you have a lot of experience especially since you do everything yourself as life taught you not to trust others or let anyone near your business. I am simply here to help and get help, teach and learn from others. I hope you understand/appreciate that as from your comments on this forum and others you are not exactly involving others in your decisions too, so pls do not expect others to do the opposite.

Regards,
Neil

 

[housedoc]

"The statement: `Past performance is no garantee of future performance` comes to mind."

This may be true for companies, but for people, past behaviour is the best predictor of future behaviour!

 

[Berubeland]

I wonder what the statistics are for a few of the stated occurences

1) Both tenants are separated and also living with family (what are the odds of that? )

2) Both tenants simultaneously "forgetting" to write down the previous landlord

3) Tenants separating again after 2 separations (third time`s the charm?)

For these reasons I would consider these applicants an unacceptable risk.

Plus, your target market for a 3 bedroom is a family or even roomates (Not as stable)

 

[invst4profit]

Investmart:

It is understandable that you make your own decisions.
The problem I am having is understanding why this decision has not been made yet. You initially posted on Oct 6 and by the 7th had plenty of feed back.
What I feel is, again based on your last post, that what you are doing is trying to convince yourself that these people will work.
Unfortunately as a LL this is not about simply putting warm bodies in units. It is paramount that the right body be placed in the unit.
The right body is the one that pays on time, takes care of the unit and is dependable/secure so as to create the least amount of stress for the LL.

These two fail in all categories. There background is unstable, they are less than candid in providing information, they are presently not in a secure situation in there lives and they are inquiring into a property that is not consistent with there needs.

Statistically you are entering into a high risk situation with blinders on by suggesting reasons to convince yourself it will work.

Something else to keep in mind is that since they have been living with family they may have been cheating on there ODSP entitlements and are moving back in together for less than honest reasons.
There ODSP entitlement will be reduced from the present amounts when they live together.
Test the water by letting them know you will insist on direct payment from the government and will be informing ODSP that they will be living together.
Obviously it is your decision I simply hate to stand on the sidelines in this business watching a train wreck about to happen.