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Landlords Are Not Just Renting To Anyone With A Security Deposit

Jun 13

filed under: Real Estate, Yada Yada

If your looking to rent a nice single family home  make sure you are prepared to provide your potential landlord lots of personal and financial information. We all know about the jazillions of foreclosures and short sales, remember the song “where have all the flowers gone”, well the new version goes like this “where have all the ex-homeowners gone”? Gone to renting my friends, gone to renting.

Many of these ex-homeowners, now tenants, have been renting for the past few years since they lost their homes. Often their landlords overlooked their financial problems and made exceptions due to tough economic times and granted leases while crossing their fingers and going on faith or their gut intuition that their new tenant would pay the rent. Much to their dismay, a portion of these new tenants are late with their payments or have missed payments all together.

Well rebellion is at hand. No more Mr. nice guy. . just as lenders now have very tight and conservative lending standards before they give out money to buy a home, landlords are now following suit with their own “you will jump through hoops if you want to rent my property” standards and requirements. Many of these single family landlords have now hired third party management companies to handle their rentals and screening of potential tenants.

Get prepared for lengthy applications asking for names of past Landlord/Mortgage Co. references, employment references, supporting income info, multiple pay stubs from your current  job, verification of employment, some require verifiable income be at least 3 times the amount of the rent. The weight, breed and age of your pet or pets will be needed. Got kids or an in-law living with you, you will need to fess up with the names, relationship and age of ALL occupants that will reside in the home besides you.

A credit and background check will be done. Often these companies have a goal to be sure that the amount of your total debt on the credit report not exceed a 75% debt to income ratio. In almost all cases your application will be dismissed if you have had a felony conviction. Active or dismissed bankruptcies or eviction/judgements within the last four years, unless satisfied, are frowned upon.

Don’t look for an immediate answer to your application and for sure don’t count on your application being the only one considered. There is a big demand for single family rentals right now, you have lots of competition for the house you want to rent. An application process can take anywhere from 24-48 hour and that does not include weekends. How quickly your employment and rental verifications are sent back play a major role in the time frame. Bottom line know this, the landlord is going to chose the best tenant he feels is right for him.

Investors out there, this is a great time to buy a Fountain Hills property or in other areas in the Valley that you can hold on to and rent.  Contact us for more information or to receive listings about properties that fit this kind of criteria.

 

 

Written by Howard Harris