Don't Get Suckered by These Applicants

You May be Desperate, But Don’t Let “Cash in Hand” Distract You
by Eric Boyd
I got a call on one of my vacant, available rentals today. The caller drove by the property, saw the sign, and called. They wanted to see it “right now”. I told them I couldn’t get over there to show it until 4pm, as I have other engagements until then. They said, “Well, we’re headed back to South Carolina to take care of some business so that wouldn’t work.” I apologized, and encouraged them to take a look around the outside and peek in the windows.A few minutes later, the caller’s wife called and said they like it, and asked what they need to do to rent the property.

I said that I could give them an application for them to complete. Then, I would conduct credit and background checks, and employment and rental verification.

She quipped that they didn’t have a previous landlord, since they own their house in SC. She then said, they were trying to get this done today, so they can go back to SC. They wanted to get this done before school starts, so they can get their kids registered. She said, “We have cash in hand, and are ready to get this doneI politely responded to her, and let her know that we don’t rush our tenant screening process. I stated that it is our duty to the property owner to ensure that tenants are properly screened, with thorough credit and background checks, and employment and income verifications. I shared that it has been our experience that taking shortcuts in the screening process leads to problems with tenancy, down the road. So, we avoid those shortcuts, at every opportunity. She thanked me, and we ended the call.In today’s housing market, there seems to be surplus of rental property. Because of this, it is taking much longer to get property rented. And, if you’re properly screening your tenants, it could take even longer to get it rented. So, desperation may set in. If you feel like you’re getting desperate, don’t let “Cash in hand” distract you from doing your due diligence. If you do take this shortcut, the upfront money you get, could cost you double or triple that amount down the road. This cost could come in the way of lost rent, or even worse, damages to your property.The caller said they own a house in South Carolina, but they’re trying to rent here in Jacksonville, Florida, 4-5 hours away. If they have a house in SC, why are they moving here, and what are they going to do with the house in SC? If I didn’t screen them, I wouldn’t find out if they have a mortgage on that house, which probably requires monthly payments. Sure, they may have the means to cover a mortgage payment and a rent payment somewhere else. But, if I didn’t screen them, then how will I be able to determine their income? How will I know if they’re 6 months behind on their mortgage? How will I know if they just filed bankruptcy? How will I know if they’re bouncing $30 checks at the grocery store? If I don’t screen them, I won’t know these things.I’m generally trusting of people. But, having been through the tenant screening process many times, I realize that people DO TELL LIES. Fortunately, we landlords and property managers don’t have to fall victim to these lies. Professional property managers have access to tenant screening services, which reveal the truth about tenant applicants’ credit history, debt status, and civil/criminal judgments. Property managers can also verify applicants’ employment and rental history. This information, combined with careful analysis of the provided data can help to place the best possible tenant in your rental property.In summary, don’t succumb to desperation. Don’t allow a tenant prospect to force you to alter your normal screening processes. Don’t let the chance at “cash in hand” to steer you from your due diligence. SCREEN THOSE TENANTS!!