Posted by Todd on May 07, 2000 at 21:59:31:
yep, I give them the option of calling the mortgage broker that I use, to let him determine if they will qualify in 18 months. so he should be able to point out something on their credit that would justify turning them down…
I would honestly love to get them into the house if they come through in 18 months…
Possible Tenant Concerns - Posted by Todd
Posted by Todd on May 07, 2000 at 20:29:06:
I was showing the house today to potential T/Bs. Definately some interesting people. One in particular, and now I’m worried that they will apply. My main concerns are a small house with a couple and 4 kids. The house would get trashed. not a problem if they come through and purchase though. also, a she had mentioned something about a nervous breakdown… and rehab. I’m not sure what rehab has to do with nervous breakdown if anything. we already told them what we were expecting for option money. I would feel better if they do apply and their credit checks out (which sounds intersting too…) and we could charge them more option money. what are the legalities of changing the amount for option money, since we already told them a smaller amount? can we deny taking an application, thinking that its a waste of their $25? They were really nice, but some of their situations that they’ve been through sound bad. is the only true and legal way to deny a tenant for credit reasons?
I think she did say she was evicted a couple of times, however I think the house would be in her fiance’s name…
what a great first day of trying to get into lease options.
Re: Possible Tenant Concerns - Posted by PBoone
Posted by PBoone on May 08, 2000 at 12:49:04:
Todd,
Find a different group would be my best analysis of this particular situation.
We have made it a company policy not to accept applicants who have had an eviction, bankrupcy or foreclosure within the last 4 years. We explain this policy to all who apply BEFORE we take thier application and money. This includes both the husband and wife or any person over 18 residing in the home.
Pat
Re: Possible Tenant Concerns - Posted by Bert G
Posted by Bert G on May 08, 2000 at 11:13:04:
First the disclaimer. I’m not a lawyer, I don’t play one on TV, and its possible I may be full of carp. (thats with a C, not a K) My only credintial is two decades as a landlord.
Until they buy the house, they’re tenants and subject to your locality’s landlord-tenant rules
Is it the multitude of brats that has you concerned? While one must be cautious to not violate any fair housing rules, it is generally accepted that you can set reasonable occupancy limits. Unfortunately, those limits have not been well defined accross the board. The National Apartment Assn has been lobying for some time to get the rules nailed down in writing, but until that happens most folks in the know say you should be safe limiting occupancy to two people for each bedroom. So, couple with 4 kids is 6 people, they should fit in a 3-bedroom house.
RE: Nervous breakdown and rehab. Maybe her term for hospitalization. WARNING! Possible discrimination opening. Don’t bring it up, don’t consider it in any way in making your decision.
There are a lot of legal ways to deny an application. You can even do it just because the applicant made you feel creepy. But you MUST make yourself aware of the fair housing and discrimiation rules and do not violate any of them. Of course you wouldn’t do the obvious race, family status, etc, but some are quite subtle. (It has actually been ruled discriminatory if you say your house is a block from a church, even if the church is the biggest landmark)
Changing the option money. Once you name a figure you’re pretty much stuck. If you do change the figure, you better have a darn good legitimate reason for doing so. (Your credit is so bad ordinarily we’d decline you, but we might be persuaded if you were to offer us a larger option deposit)
Far as I know, you cannot refuse to accept an application. If they want to blow $25 bucks, that’s their right. Look at it this way, until they apply, what information do you have upn which to base a fair decision?
Pop by the local library and peruse “Landlording”, by Leigh Robinson. It is probably the easiest and best quick reference for doing the landlord thing.
Good luck
BG
Re: Possible Tenant Concerns - Posted by Laure
Posted by Laure on May 07, 2000 at 21:35:11:
I am sure that your mortgage broker (run the credit through one) can give you an out… or else they will qualify right now ! Your out is that they won’t be able to qualify in the option period. And it wouldn’t be right for you to take their money and have them not qualify.
Hope I helped
Laure 