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Old 10-10-2017, 12:25 PM
 
Location: Las Vegas
13,879 posts, read 25,306,858 times
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I also think this is an anomaly. Most landlords here love to rent to people with a guaranteed income that can't be affected by the economy. Las Vegas is full of 'John and Jane 4 Jobs' because most of the jobs here are very low pay, have no benefits, and are hard physical work. The retiree on SS is a much lower risk!
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Old 10-10-2017, 12:42 PM
 
Location: Scottsdale, AZ
7,597 posts, read 4,680,291 times
Reputation: 27796
Quote:
Originally Posted by HappyDogToday View Post
Most people will make the rent the first bill to be paid, period. No one wants to be evicted. I've witnessed it. It is not pretty.
I think you might be surprised by how many people make their personal vices the first bill to be paid. And how many tenants who don't pay their rent have huge new TVs.

Some people have mistaken ideas about how protected they are under their state's landlord/tenant laws. Or they're simply delusional, like my last tenants.

This was a retired couple who were raking in $3k every month in SS payments but couldn't pay the $1200 rent. Why? Because she was a compulsive shopper and hoarder. He was firmly convinced that if he kept putting money in small tech start-ups, he'd get rich. They couldn't afford to live in our house without changing their ways. So we evicted them.

Go buy a rental property, screen some potential tenants, rent to them for a year and come back to tell us what you've learned.

Quote:
If a person who works gets laid off, what is there to garnish? Duh.
A landlord goes to court and obtains what is called a "money judgment" for monies owed. He can do this even after the tenant has abandoned the property or been evicted. His wages at his next job can be garnished to satisfy the judgment.

Quote:
So there is no logic to banning SS income applicants as tenants. It goes against any logic and common sense, IMVHO.
Common sense is informed by knowledge. You know nothing about the rental housing industry or what landlords have to endure.

(And yes, peanut gallery, I know I said I wouldn't post here any more. Sue me.)
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Old 10-10-2017, 12:47 PM
 
Location: Tennessee
23,546 posts, read 17,535,380 times
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Quote:
Originally Posted by eliza61nyc View Post
So it's a balancing act. I asked my sibling who owns some rental property. for him it's not so much as being on SS it's more of "that's their only income". It's not necessarily the age but the income

Seniors trying to rent when Social security is their only income do present a higher risk (not my words). same thing with someone working 4 part time jobs.

Remember your goal as a landlord is to get a reliable, financially secure tenant. What happens to "Joe or Jane 4 jobs" if they lose one of their jobs? rent is usually the first thing they skip on. the problem is, as a landlord, your bills don't stop because your income does.

His applications do have to list their income sources. sure there are no "guarantees" but you are trying to hedge your bets.
=.
SS is often not going to be enough for many people to bring in three times the rent if SS is their only income. That's problem #1. Take a single person with no spousal income, and it gets even more complicated.

I don't know that I buy that the first thing people skip is rent. I was facing a probable job loss last summer. If I couldn't pay all my bills, I had a priority list of bills that I'd try to pay. Unessential bills like cable would have been cut, followed by all unsecured debt payments. Rent was the next priority, and my car was the highest. I was trying to keep the car because I would have come back to Tennessee anyway, even if I couldn't pay the rent.

For many people, the rent is going to be the highest priority. It's also much quicker to evict a nonpaying tenant than it is to go through the foreclosure process to get an owner out of a home.
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Old 10-10-2017, 01:09 PM
 
Location: Philadelphia/South Jersey area
2,869 posts, read 1,400,541 times
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Quote:
Originally Posted by Serious Conversation View Post
SS is often not going to be enough for many people to bring in three times the rent if SS is their only income. That's problem #1. Take a single person with no spousal income, and it gets even more complicated.

I don't know that I buy that the first thing people skip is rent. I was facing a probable job loss last summer. If I couldn't pay all my bills, I had a priority list of bills that I'd try to pay. Unessential bills like cable would have been cut, followed by all unsecured debt payments. Rent was the next priority, and my car was the highest. I was trying to keep the car because I would have come back to Tennessee anyway, even if I couldn't pay the rent.

For many people, the rent is going to be the highest priority. It's also much quicker to evict a nonpaying tenant than it is to go through the foreclosure process to get an owner out of a home.
Sweet Lord Where? seriously?? in NY and Philly it can takes months to evict a tenant.

LOL, if mortgage and rent were the first to be paid, how are so many folks months behind on their mortgage??? in fact there were so called "experts" advising homeowners NOT to pay their mortgage if their house was underwater. You don't remember that?

Ok in Philly (only market I know)
it can go like this. first you have to notify the tenant in writing that they are being evicted. tenant has 20 days to reply before you can even begin the process. so there is one month no rent.
after that the landlord then can file a motion to evict in court. the court then sets a time and date where the tenant must appear. that can be anywhere from a few weeks to a month. month 2 no rent.

at court the tenant can agree to mediation. if they do that, the entire thing is pushed back until the mediation is resolved.

and if the tenant is up on how to draw the process out it can take a while.
I don't know how the foreclosure process works though.

oh I know first hand folks who don't pay their mortgage. if you've got to pay the car note to get to work you are not going to risk getting repo'ed. If you've got to eat, that will be your first thing you buy. I know folks who got laid off with me when I was downsized in 2016 who KNEW that they had some leadway.
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Old 10-10-2017, 01:27 PM
 
Location: Central IL
15,201 posts, read 8,509,345 times
Reputation: 35575
Quote:
Originally Posted by fluffythewondercat View Post
I think you might be surprised by how many people make their personal vices the first bill to be paid. And how many tenants who don't pay their rent have huge new TVs.

Some people have mistaken ideas about how protected they are under their state's landlord/tenant laws. Or they're simply delusional, like my last tenants.

This was a retired couple who were raking in $3k every month in SS payments but couldn't pay the $1200 rent. Why? Because she was a compulsive shopper and hoarder. He was firmly convinced that if he kept putting money in small tech start-ups, he'd get rich. They couldn't afford to live in our house without changing their ways. So we evicted them.

Go buy a rental property, screen some potential tenants, rent to them for a year and come back to tell us what you've learned.
I think your issue was that you rented to someone where $1,200 is 40% of their gross income...according to some calculators rent should be as low as 25% - 33% of gross, max.
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Old 10-10-2017, 01:40 PM
 
Location: Scottsdale, AZ
7,597 posts, read 4,680,291 times
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Quote:
Originally Posted by reneeh63 View Post
I think your issue was that you rented to someone where $1,200 is 40% of their gross income...according to some calculators rent should be as low as 25% - 33% of gross, max.
This is going to surprise you: When we evicted them, they had lived there for 17 years.

They were both working when we rented to them lo those many years ago. And we kept the rent at $1200 all that time...for a house in Silicon Valley.

They had the deal of a lifetime. King Lear had it wrong, it should have been:

"How sharper than a serpent's tooth it is
To have a thankless tenant!"
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Old 10-10-2017, 02:05 PM
 
Location: Tennessee
23,546 posts, read 17,535,380 times
Reputation: 27586
Quote:
Originally Posted by eliza61nyc View Post
Sweet Lord Where? seriously?? in NY and Philly it can takes months to evict a tenant.

LOL, if mortgage and rent were the first to be paid, how are so many folks months behind on their mortgage??? in fact there were so called "experts" advising homeowners NOT to pay their mortgage if their house was underwater. You don't remember that?
Those are liberal, tenant friendly markets. I live in Tennessee. This is a landlord friendly market. Around here, I wouldn't be surprised to see eviction proceedings start within a week of the rent being due.

You can fall behind on the mortgage for a month or two and you're not going to be removed from the home within that timeframe. Try that as a renter and you'll end up homeless in this area.
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Old 10-10-2017, 05:49 PM
 
Location: Ypsilanti, MI
2,434 posts, read 3,659,178 times
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Quote:
Originally Posted by eliza61nyc View Post
I've even made the argument that a day after you get a mortgage you can up and quit.
I did that, in a sort.


A co-worker and I both decided in late 2012 that we would retire in early 2013. (Actually, we each thought the other would assume our current job assignment until we compared notes). Since Mortgage rates were so low, we also independently, but simultaneously, both applied for mortgages to re-finance our respective homes to reduce our monthly payments in retirement.


Applied for a re-finance in December, closed on the loan in February, retired effective April 1st. We each 'knew" if we waited till after retirement that we might be denied due to income uncertainty.


He elected to not return to work, and still hasn't 4-1/2 years later. My plan was to obtain a similar position as soon as possible, which I did in early May of '13.
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Old 10-10-2017, 07:35 PM
 
12,289 posts, read 15,184,803 times
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A retiree sure won't have to move because of a job transfer, or taking a job out of town.
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Old 10-10-2017, 08:28 PM
 
Location: Los Angeles area
14,018 posts, read 17,726,438 times
Reputation: 32304
Quote:
Originally Posted by HappyDogToday View Post
Guaranteed SS income is better than any job's income because the job can go at any time. I know, I've lived it.
I am better prepared to manage the rent now than I ever was during lay-offs in the Great Recession.
Most people will make the rent the first bill to be paid, period. No one wants to be evicted. I've witnessed it. It is not pretty.
If a person who works gets laid off, what is there to garnish? Duh.
So there is no logic to banning SS income applicants as tenants. It goes against any logic and common sense, IMVHO.

You make an excellent point there. My only quibble would be to say that a rational landlord is going to look at the amount of SS income as it compares to the amount of the monthly rent to see whether it is a "tight squeeze" for that particular prospective tenant. The ideal tenant would not find it a tight squeeze to pay the rent every month.


But your general point is valid. While there is no absolute sure thing in this world, SS income is about as sure as it gets.
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