Rent To Tenant With No Job But With Cash?
A prospective tenant is out of work - no income. But is supposedly expecting a large judgement in his favor in five months.
He is willing to pay 6 months rent up-front.
What would you ask for up-front, in a case like this???
Sign a 6 month lease. Check the credit with judgements against them.
What if he cannot find a job in short time, and his judgement doesn't come thru. YOu will be stuck with poor/uncomployed tenant.
YOu have to think about this. Maybe ask for 10-12 months. This case might be risky for you.
I would take a 6 month lease and a months deposit. At the end of the 6 months file for an eviction, if he gets the judgement and pays on the 6 month, then you have a good tenant, if not then its business as usual. Tell the tenant that you are doing just that, and to schedule the final eviction date one week after his check is due. If he is honest then he has nothing to worry about and has a week leaveway should the mail be running late. If he isnt honest then it is all set up for him to leave and you keep the deposit.
I would have a real hard time turning down a tenant with 6 months rent up.
If you want to save money have him pay for the eviction as well, and then offer it taken off the rent when he pays for the next 6 months up front.
Good Luck,
Kyle
Nothing wrong with him paying for a 6 month lease up front and taking a month and a half sec deposit, right?!? I would suggest that - but if he isn't ok with that I wouldn't deal with him.
Good Luck!
[addsig]
I actually ran into the almost identical situation a few months back. It simply made me to nervous. I kept wondering why this guy was getting this judgement, and if I was going to be the next victim. Also, I have heard of plenty of people who supposedly were expecting judgements in the near future, and it ended up dragging out for years. Further discussion with this guy turned up some clues that he liked to party too much. I personally just like "normal" situations. Whenever I start hearing a story about something out of the ordinary I grab hold of my wallet and run.
Unless you're in some sort of pinch, and feeling pressure to fill this apartment fast, I say pass.
A few points to think about. They may or may not be relevant in your situation.
Why is he both unemployed and looking for a place to live at the same time? Most people try to minimize their expenditures when they loose their job. There may be a perfectly good explanation for this or it may be a sign of his rational decision making skills and spending habits.
Does him getting a large (or any size) judgment imply that he is litigious? Let's face it, lots of people are litigious, but why invite someone in who is telling you that he is litigious. Believe me (I’m in HR), if he tells any potential employer about his judgment from his previous job, his chances of being hired will go from slim to “Don't let the door hit you on the way out.”
What will you do if he moves out in 6 months? It may not be an issue for you, but for me, Feb/March is a terrible time to try to rent out an apartment. No one wants to move when the weather's lousy.
Good luck.
to unstable of a sitiuation. to many variables. i would find another tenant......kenmax
What?? Are you guys serious? This guy is willing to give 6 months up front! Have him sign a 6 month lease pay the full 6 months plus security deposit.
Run a background check---make sure this guy isn't going to cause you problems.
Cash is king and I simply don't care if the guy is willing to prepay the entire lease up front.
GOOD LUCK
to each his own......ken
Thanks for the comments. A couple of clarifications.
Verified that place he was/is renting is being sold, so needs to move. Credit is OK. "Judgement" is a tax audit refund for $13K.
A friend of mine had almost identical situation & he fell for it...and rented to a real bad egg, only to later be notified by the sheriff that they'd arrested the guy for running a meth lab...and the house was condemned!
Cost my pal a lot of money to climb out of the hole on that one.
At the very least, get criminal & credit & past LL references, so you'll have done what you could to check him out.
Remember, in REI, every favor is normally punished.
[addsig]
<<He is willing to pay 6 months rent up-front>>
Are are talking about him giving you a lump sum equal to the amount of rent you would collect for 6 months? I thought that's illegal, at least here in California.
I'm a little curious about yoru situation as well. Obviously with 6 months up-front you are good until Feb or so; but I'd wonder if he is ready to hand over 6 months of rent to you whether he actually has more money to "tide him over"
And if he is getting 13k back from the IRS, find out who is doing his taxes (i may need a referral.....)
Seriously, you are the only one who can make the judgement call about his caracter. Is he looking for work? 13k isn;t going to go very far.
If you believe you can trust his caracter, then i wouldn't let the prepaid rent bother me; but I'd want to know his plan for WHEN the judgement is delayed.
Good luck!
Dear JohnMerchant,
Just curious, can the sherriff condemn a landlord property if a tenant was involved with drug or illegal act like prostitute, robberies, like in your case, pretty extreme isn't?
Quote:
On 2004-08-11 16:04, JohnMerchant wrote:
A friend of mine had almost identical situation & he fell for it...and rented to a real bad egg, only to later be notified by the sheriff that they'd arrested the guy for running a meth lab...and the house was condemned!
Cost my pal a lot of money to climb out of the hole on that one.
At the very least, get criminal & credit & past LL references, so you'll have done what you could to check him out.
Remember, in REI, every favor is normally punished.
James -
The problem with a meth lab is that usually the house is contaminated and requires professional (HazMat) cleaning. Typical criminal meth production produces 5 units of hazardous waste for every unit of meth. Most 'cookers' are not chemists and could care less about the hazards of the byproducts. They end up storing it all over the house. Plus the fumes are soaked up by the walls, ceilings, children who deserve better etc. The house usually becomes condemned due to environmental hazards.
It is my understanding that most other types of crime will not effect the landlord as long as it wasn't going on with the lanlord's permission (direct or tacit)
NEVER throw caution to the wind
how many unlawful detainers does he have?
do your home work!!!!!!!!!!
I wouldn't do it. I've had enough problems with tenants who had jobs. I wouldn't rent to someone who started out not having a job. There may not even be a large settlement in his future.