THIS PROBABLY NEVER HAPPENED TO YOU, BUT …
The applicant for #3 didn’t fit the expectations of many owners. She did not have a “steady job”. She did not have years of rental history. She did not have excellent credit. But in spite of all of this, there was every indication that she would make a fine tenant. The challenge here was to look beyond the obvious criteria we on which we typically rely in making our judgment about whether or not to accept a tenant’s application, and figure out how we could qualify such an applicant. Making this effort to qualify tenants is more important that it has been for many years, in this tough, very competitive rental market.
The lady mentioned above is a great example. A little more research revealed that she had recently been widowed. She had been a “home-maker” for most of her adult life, thus no job history. The home she and her husband had owned was paid off, thus no rental history. They paid off their small credit card balances each month, thus the relatively low credit score. She and her husband had invested prudently, and this philosophy carried on with the wife as she invested the proceeds from the sale of their home.
The simple, non-discriminatory test we applied here was a review of her bank balances. It was clear from her statements that each month she took in adequate income to qualify for this apartment unit. Each month her ending balance was greater than the month before. Her minimum balances easily exceeded three months rent.
And one other interesting element: Social Security. It was not a big part of her income, maybe 30%, but it is very, very secure income. Something to think about.
In this rental market, the question is not “do they qualify ?”, but “how can we qualify them ?” in a manner that we can apply across- the-board, to all potential applicants. We do not want to let a good tenant get away.
A copy of our “Rent Requirements” is available on request. They are working well for us.
Dear Readers: This article is the 151st in a series based on the lessons we have learned the hard way. The contents of these articles are merely opinions of the writer. They are not intended as specific legal advice and should not be relied upon for that purpose. Our practice is in constant refinement as we adjust the way we operate to an ever- changing rental market. I always appreciate your questions, comments, suggestions, and solutions. Contact C. Finley Beven, CPM, CCAM, JD.
Beven & Brock Property Management Co., Inc.
99 S. Lake Avenue, Pasadena. (626) 243-4145
FinBeven@MSN.com