For the fourth time in as many days, I have been contacted by real estate agents who want to show my vacant properties to their tenant prospect "clients". In all instances, these are voices on the phone to these agents * not people they know personally, and since my vacant properties are not available in our local MLS, the would-be client is coming to an agent having already found the property online on Craigslist OR my website. I suspect these prospects have reviewed my credit criteria online and they know they will have a better opportunity getting in to see my properties if they go through an agent. The call I received today, the agent let me know his prospect is going through a short sale now and he will be moving into the area for new employment. I suggested the agent have his prospect fax me a completed rental application and his new-hire letter and then we could discuss him arranging to view the property. When I suggested he may be spinning his wheels for nothing if his client's credit is bad, he realized that he was about to waste his time getting keys and showing property to someone who may not be qualified.
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
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"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous
Wallace,
I'll take a shot at answering the question? We try to help because that's what we do--help people find places to live. Rentals are not a big part of my business, but I know everyone cannot, should not, or maybe don't want to buy a house.
Now I have relatives who own and manage rental properties and I understand how getting problem tenants out of a property can be an emotional and financial hassle. Good screening up front can eliminate future problems. I know, I know.
As the showing agent, I give the prospect the criteria, the application, cover the appropriate disclosure information for the state, and if the client tells me they meet the criteria, I go with that. The applicant submits an application fee with the application and I represent their case to the property management.
Some applicants have blemished records. Sometimes, the blemishes can be explained, they are accepted as renters, and become model tenants. Sometimes the blemishes can be explained, but they are rejected. The applicants differ, their circumstances differ, and the property managers and owners differ. I take it as my job to help them find a place, if I take them as a client. The owners make the final call.
Wayne * don't you think a 5 minute telephone conversation about why they are moving to the area and why they are not BUYING would be in order for the agent to elicit some information on their financial situation.
Virginia is very low in the ranking of foreclosures and short sales so someone in VA who is going through a short sale needs to answer some additional questions....like why the need for a short sale * job loss, divorce, etc.
For an agent to have that information and NOT tell a private landlord would be irresponsible; however, the bigger issue is the fact that they will mostly likely file bankruptcy while in the rental unit if there are additional credit issues and a professional property manager would want to make that risk assessment.
Selling agents do the sale, collect their $$$ and walk away. Property managers have to live with their applicant decision and manage the property AND collect the rent during the term of their lease.
With all the short sales in Calfornia we are taking short sellers if their other credit is solid.
Bob * that makes sense; however, we have double income medical and military families moving into our area who have sold their current homes AND who will only be here 2 or 3 years so they are renting....
I think tenants with bad credit need places to live too. If I am approached by a client with bad credit I still attempt to help them find a rental home even while giving them a realistic picture of how difficult it might be. I have had many scenarios where I have worked with clients whose credit is atrocious and who turn out to be great tenants and the other way around. I think credit needs to be only one portion of a tenant screening that also includes rental history, income, job stability, as well as any explanations about the items that are present on the credit report.
Public housing is FILLED with residents who have bad credit and there are unknowing or uncaring landlords who will rent to people with bad credit.
I, as a business decision, elect NOT to rent to people with bad credit and I say that when I do property presentations BECAUSE it is one of the HARDEST areas to guarantee performance and FEW property managers or real estate agents know how to file an eviction and follow through with their removal.
I do know the process and I can evict non-performing residents myself; however, eventhough I am NOT afraid of the process, it is time consuming and really not necessary if marketing is done properly and screening is performed as a part of the application due diligence.
I resently worked with a renter who's credit was almost non-existent. She had never bought a car or home before and paid for everything in cash after saving up for it. She had lived in only 2 places her adult life. 1 for 10 years and the other for 2 years. The only reason for leaving the latter, is because the property is going into forclosure. Documentation from the home owner states she never missed a payment. But because of the credit report, she has been denied several times. As a real estate agent and a former property manager, I understand both sides of this coin. I know that people with challenged credit need a place to live also. From experience, I remember thinking that all I need is a chance to start over. I thank God I got that chance. And because of it, I will continue to help them. All we can do is present in the best light possible the explanations and evidence that supports the circumstances of our clients situation. Even then, I know, it still comes down to the individual home owner or property manager.