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Let's say you're a tenant and are considering a couple of apartments, but it's a toss up. Rapport with 2 of these landlords was good and you feel good about the neighborhood. It's time to step it up a notch and do some background checking of the landlord, the building, the area, etc.
I talked to my friend who's a landlord of a small property himself, and he suggested to:
-contact the power company for an estimate on electricity consumption in the past year (most apartments have electric baseboard heating)
-call the rental board to see if there are any cases against the landlords, etc.
Otherwise I read that visiting the local police station is a good idea, asking them about crime in the area, the individual street, etc.
Any other tips? Once I know more "hidden" information about the apartment and the landlord, including the unit's past rent, this would help. However one thing to consider is that both apartments were recently renovated and one of them is being renovated now, so that will boost the unit's value. I don't know how to put a price on that.
I always check property ownership... there have been a few high profile scams that left potential renters out thousands.
Crime reports are often available on-line from law enforcement.
Building Departments track code violations...
Power company might not be as useful... I've rented the same apartment with huge differences in electric usage. Previous tenant was a young stay at home mom with a 9 month old... her average month bill was $300 per month... rented the same apartment to a retired couple and their bill averaged $60 per month... I remember standing at the front door and feeling a blast of heat when the younger mom was there... point is... lifestyle can have a huge impact.
I've always talked to at least a few people that live in the neighborhood...
It'd good you are being pro-active... a little time spent upfront may avoid potential problems later.
Last edited by Ultrarunner; 08-10-2010 at 03:09 PM..
Hi Ultrarunner, thanks for tips. I visited the borough's city hall and police station. What I discovered was very enlightening. At city hall's urban planning department, the clerk told me that if I wanted to check building code violations, I needed to submit and official demand (it costs $), but that informally, he could show me some basic info. This basic info was actually the key to solving the mystery of who the actual building owners are. I discovered that out of 4 apartments I was recently considering, 2 out of 4 of the landlords who claimed to own the property were in fact the owners. An apartment that was my #1 choice had an owner that did not match the landlord's name. Another place had 2 English contact names in the for rent ad but the actual owners were Pakistani. Hmmm
The police station visit was interesting. I told the officer I planned to move to the area and showed her some addresses, asking her if she had weekly / other crime report summaries available, was it published, etc.? She said no, but she was willing to point out the pockets of streets with higher crime statistics, citing areas where car and home break-ins were more likely, rampant drug and alcohol use (I guess abuse), loud people, fights, etc. She told me to avoid 2 specific pockets and 2 out of 3 of my top choices were in those areas. Both of these places also had different owners than I expected.
Therefore, regrettably, I'll be eliminating both from the running. Regrettably because I was keen on one of them with brand new renovations, a nice landlord I had great rapport with, who even claimed he'd build a shed for my motorcycle, etc. Also useful was candid advice from a clerk at the municipal court, who recommend I concentrate on an area away from the subways, where there was more tendency for crime.
Last edited by ValueAddedWorker; 08-10-2010 at 06:15 PM..
To expand a bit on UltraRunner's comment on property ownership, I would check on any notice of defaults or liens on the property. In California, all it would be is a trip to the County Recorder's office. Also you can check if the owner is current on their property taxes.
You do not want to rent from a private owner when he is about to get foreclosed upon.
Hi Ultrarunner, thanks for tips. I visited the borough's city hall and police station. What I discovered was very enlightening. At city hall's urban planning department, the clerk told me that if I wanted to check building code violations, I needed to submit and official demand (it costs $), but that informally, he could show me some basic info. This basic info was actually the key to solving the mystery of who the actual building owners are. I discovered that out of 4 apartments I was recently considering, 2 out of 4 of the landlords who claimed to own the property were in fact the owners. An apartment that was my #1 choice had an owner that did not match the landlord's name. Another place had 2 English contact names in the for rent ad but the actual owners were Pakistani. Hmmm
This can be deceptive as well, though. Did the person you talked to actually say they were the owner? Or were they just a property manager? Even if they said they were the owner, the property could be listed in someone else's name and be a partnership, or in a business name. My parents, who are property managers and real estate agents, own several properties with a friend, and they are all primarily in the friends name, but my dad always says he is the owner, which is true. If someone were to research this without asking for more information, they would assume we were scamming them. We also manage property for my grandparents, so we say we "own" those properties too, since my mom is the trustee, but they are owned by the trust. Sometimes, a property manager might say they "own" a property, meaning simply that they have control over what happens with it, that they don't have to go to a 3rd party for decisions.
However, there are so many scams going around, that I think it is wise for a prospective tenant to do their research, and find out if the owner is really the person you are talking to (look up a name and home city in the county records and call that person directly wouldn't be a bad idea, although not always possible in today's cell phone age, and not always possible on trusts), and if there has been a notice of default filed (for foreclosure) etc. And I am fully aware that, upon researching ownership of a property, some people are going to think we are scamming them. But my dad is...lets just say he's not really re-trainable...he is going to keep saying he owns the properties, because for all intents and purposes, he does, but as renters get more and more suspicious (with reason), it may lose him some tenants.
Today I submitted a rental application for the first time during my apartment hunt. It was a pretty decent place, just 1 bedroom though, but fully renovated, clean and centrally located. The person who posted the ad claimed to be the owner and when I prodded a bit more, she indicated she's the co-owner with 2 others. After I completed the form which asked for my name, address, employer's address, my title, salary, references, etc. and required my signature to consent to a credit check, I felt due diligence was in order and asked to see the person's ID. She showed me a driver's license with her name and address on it.
Her ID looked legit and I copied down her name and address. Apparently this surprised her. I wonder whether she was thinking whether I'd come and pop in at her home, LOL! She exclaimed: you're writing down my address?! So I reply, yes I am and I'm also going to check the information you provided against ownership records. Again, she was surprised. I think I was the first person who ever mentioned that and she was taken aback.
She said she'll submit my application to a credit agency and that by Tuesday they should have an answer. That is if she's not too freaked out by my probing. Hey it's only fair. A LL can't expect to totally run the show with a tenant taking it from behind, so to speak. I'm not like that. In the meantime I'll keep looking and hopefully find a better place (I have one in mind) that's bigger (I'd rather have a 2 bedroom apartment with a garage or driveway if possible, as this one didn't have one and is smallish), but we'll see what develops.
Last edited by ValueAddedWorker; 08-12-2010 at 11:01 PM..
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