[Konig1985]

Originally Posted by JViello

Credit scores don't mean everything. I had a dark period when I went through a divorce, the debts were eventually taken care of but the score took a big hit. Does that mean I'm not responsible? Of course not.

Life throws curveballs. A friend of mine just went through foreclosure in FL and they are now living back in CT renting for the past two years with no issues. I guess they should just live in the street?

Exactly what my thoughts are which is why I don't even want to waste my $ on a credit report. I have seen many responsible people lost their shirts in this financial crisis but they simply harden up, stop consuming and start saving up to pay off the debt and restore their credit (something governments should learn fast). I am just wondering if I am too slack by only verifying his employment status via pay stub without calling reference to find out his personality (since he has no landlords for reference and I believe the references he gave will won't be bad or else he won't give them to me). Maybe the least I can do is go to the police station and look for criminal record?

[Konig1985]

Originally Posted by jjinla

Not saying they should be homeless, but if you are a single homeowner completely dependant on that rental income you would be wise to only accept people with stellar credit. I've seen owners of rental properties almost foreclose because they can't get the deadbeat tenants out. People with large complexes can spread the risk among a greater number of tenants, but in this case you are putting all of your income eggs in a questionable basket. Yes, it could be all of us one day and I thank God it's not, but is it the wisest business decision to rent to someone with bad credit, that is supposedly a VP but with no reachable HR manager? Eh.....

Yeah. This is a a major reason why I am hesitating to sign until I can see concrete evidence of employment income. He proposed paying me 4 months rent in September (pay to my personal account, not escrow account) to cover rents for September, October, July and August so I am always have 2 months of reserve rent. Sounds reasonable to me.

[Pammsw]

As a landlord, I would be very skeptical of this situation. Just because he is paying you six months in advanced doesn't mean that he will not stiff you for the last 6 months. If he already has a short sale on his credit, an eviction probably wouldn't concern him at this point. I know that hard times have fallen on the best of us in this recession but why take the risk? Find a tenant with better a credit history and verifiable employment. I wouldn't want you to be in the same situation that I was in last year. I had a tenant that paid on time each month for half the lease and then after a car broke down and a minor surgery I never got paid again. I wouldn't do it...

[Konig1985]

Originally Posted by Pammsw

As a landlord, I would be very skeptical of this situation. Just because he is paying you six months in advanced doesn't mean that he will not stiff you for the last 6 months. If he already has a short sale on his credit, an eviction probably wouldn't concern him at this point. I know that hard times have fallen on the best of us in this recession but why take the risk? Find a tenant with better a credit history and verifiable employment. I wouldn't want you to be in the same situation that I was in last year. I had a tenant that paid on time each month for half the lease and then after a car broke down and a minor surgery I never got paid again. I wouldn't do it...

What if the lead signature is someone who is credit worthy (the guy's wife's sister)?

[ebbe]

You're taking a risk IMO if you rent to this person. And evictions take time as another poster said. Plus, I don't like the outsourcing HR department. Even the smallest of firms usually have some HR staff.

[bomgd3]

I would run the hell away. The number of deadbeats in this world is astounding. Back in college, I trusted a guy with bad credit to sublease my apartment on a month-to-month basis. He wound up staying for 6 months and paid rent just twice. I had moved halfway across the country and was still a college student, so I had no idea how to get him out.

[TobinJ]

The lease should indicate whether you will hold the 6 months as a security or to be used as the last 6 months. It can also indicate a paperwork fee for eviction which will cover your lawyer fees, in the event.

We all have troubled times and if you go in the unemployment section you'll see lots of people in this kind of position. What you can't see from a paystub is the level of other debt he has. When people are turned away from commercial rental properties, it's usually because the rent is more than 1/3 of their income or they have a substantial debt load.

Is the sister going to live there or simply be a co-signor? Families feud...thus complicating recovery of any monies owed to you if there's a default. Getting 2 parties together in small claims will make for a long term issue.

If it was me...since they already have an issue with the "asking price" I would pass.

[Pammsw]

Originally Posted by Konig1985

What if the lead signature is someone who is credit worthy (the guy's wife's sister)?

IMHO, the red flags you have raised outweigh the sister-in-law's credit worthiness.