Moving to SF: Good Credit vs. $$$ (Santa Barbara, Fillmore: sales, rent, eviction)

[Isebiel]

Originally Posted by 80skeys

So money doesn't talk?? If I gave you 6 or 8 months, or even a year's rent, cash up front, would you rent to me without a credit check?

Credit scores are often believed to indicate how stable a person is, not just whether they can pay their bills. That's why insurance companies like to use credit ratings to adjust their rates.

[80skeys]

Originally Posted by Isebiel

Credit scores are often believed to indicate how stable a person is, not just whether they can pay their bills. That's why insurance companies like to use credit ratings to adjust their rates.

That didn't answer my question. I was specifically asking that apartment manager whether he would rent to me without a credit check if I show up on his doorstep offering a year's worth of rent in cash.

[mayorhaggar]

The money up front isn't to cover up anything, it's to give an incentive to a dithering landlord to choose you over 500 other people with identical credit and similarly stable jobs and adequate income. Landlords have zero way to differentiate all the good applicants other than money up front and an offer to pay more--paying more would definitely speak the loudest.

[uptown_urbanist]

Originally Posted by mayorhaggar

The money up front isn't to cover up anything, it's to give an incentive to a dithering landlord to choose you over 500 other people with identical credit and similarly stable jobs and adequate income. Landlords have zero way to differentiate all the good applicants other than money up front and an offer to pay more--paying more would definitely speak the loudest.

yes, that was our thought -- nothing to hide (and still expected credit to be checked, income verified, references checked), just wanted something that would catch the landlord's attention! Renters are getting desperate out there, and we knew that every apartment had a bunch of other people, also with good jobs, good credit, glowing references, etc. all also putting in applications. Thank goodness we finally did find something before our vacation rental ran out, but in this rental market it can take a very, very long time to land a place, even if you have a stable job, decent credit, and are looking at places well within your price range. (not sure if this helped us or not, but we also ended up renting a place that is only 13% of our household income. We started looking at places at a higher price point, had no luck, and finally found our current place. A bit of a dump, but great location and can't beat the price!)

[jbunniii]

Originally Posted by 80skeys

So money doesn't talk?? If I gave you 6 or 8 months, or even a year's rent, cash up front, would you rent to me without a credit check?

From what I understand, many landlords don't want you to prepay rent like that. One big reason is that it makes the tenant much harder to evict, should that become necessary. Another is that, rightly or wrongly, someone with a lot of cash who doesn't want too many questions asked is going to come across as potential drug dealer or some other kind of criminal. Tax implications of receiving a year's rent up front can also be a consideration.

Perhaps most importantly, in a city with rent control and strong laws favoring tenants, any sane landlord will want to screen the tenant as carefully as possible to avoid being stuck with a problem tenant. A credit check and a criminal background check would both be non-negotiable if I were a SF landlord.

P.S. If you want to differentiate yourself from 500 other applicants, I would think offering a higher monthly rent, written into the rental agreement, would be more compelling than prepaying the asking rent.

[Isebiel]

Originally Posted by 80skeys

That didn't answer my question. I was specifically asking that apartment manager whether he would rent to me without a credit check if I show up on his doorstep offering a year's worth of rent in cash.

I know The Fillmore Center will rent to people with poor credit, for an extra deposit. Don't know how you feel about a huge complex in a somewhat-dodgy area, but it's an option.

(LOL at that website. They don't even know where their own complex is. )

[uptown_urbanist]

Originally Posted by jbunniii

From what I understand, many landlords don't want you to prepay rent like that. One big reason is that it makes the tenant much harder to evict, should that become necessary. Another is that, rightly or wrongly, someone with a lot of cash who doesn't want too many questions asked is going to come across as potential drug dealer or some other kind of criminal. Tax implications of receiving a year's rent up front can also be a consideration.

Perhaps most importantly, in a city with rent control and strong laws favoring tenants, any sane landlord will want to screen the tenant as carefully as possible to avoid being stuck with a problem tenant. A credit check and a criminal background check would both be non-negotiable if I were a SF landlord.

P.S. If you want to differentiate yourself from 500 other applicants, I would think offering a higher monthly rent, written into the rental agreement, would be more compelling than prepaying the asking rent.

I don't think that's answering the larger question, though (well, it does answer the question from the person who asked if you'd rent without doing the credit check). I don't think the majority of people offering rent up-front are offering money INSTEAD of all the standard checks and screenings; they're offering it in ADDITION to all the normal application procedures.

And given the pool of people we're talking about (people who can afford to rent apartments in the city of San Francisco) I think it's a bit out-of-touch for a landlord to assume that someone with a healthy savings account would be a criminal. No one suggests that about someone with the 20% down to buy a place, do they? These prospective tenants are the ones who could choose to buy, yet prefer not to go that route. I am perhaps naive, but figured having the financial means to at least offer the money up-front (even if the landlord chose not to accept it) was a sign of strong financial footing and ample savings, and not someone who would be left unable to pay the rent if they lost their job. It wouldn't have crossed my mind that anyone would assume that a white-collar San Francisco professional with good credit and good references would be a drug dealer or other criminal.

I agree that offering a higher rent is probably a better technique, however.

[mayorhaggar]

Offering higher rent is just as shady as offering rent up front, and depends on context. If it's someone with good credit who dresses nice and produces good pay stubs from an easily verified company, no sweat. If it's some guy in a Starter jacket wearing a bunch of gold jewelry and holding the leash to a pitbull and holding $10,000 in cash in his other hand, then yeah maybe think twice.

[Martini8057]

Originally Posted by carigennarelli

A few added insights based on the comments.
1. I manage a building in SF/Cow Hollow and my studios rent for under $2,000 and some have parking
2. The market is very competative but when prospective tenants offer additional rent up front it makes me wonder what they are trying to cover up
3. As a manager I would definitely take into account your credit being affected by a short sale but i tend to be more understanding than most landlords.
4. Short sales lower your credit for 3-4 years while Foreclosures around 7 so while the banks may not care you should if you want the least damage to your credit.
5. The short sale process can still be long and incredibly painful depending on the institution that holds the note. You do have to show a hardship and most lenders require you to stop paying your mortgage. I would contact an attorney that specializes in real estate and specifically short sales. I have a good contact here is the Bay Area if your interested and she does incremental consulting on this issue via the phone.

Best of luck! it's an amazing city to live in but it is pricey and the rental and resale market is on fire right now.

carigennarelli:

I know that it is an amazing city, I have been visiting an average of 2 to 3 times a month for last couple of years. I can't be without it and have been dying to move there since I was a kid. Thanks so much for the great information, and yes I would love to have the contact information you offered, if it is not too much trouble. Can you PM me, please? Thanks again.

[CTC]

Originally Posted by Martini8057

Thanks so much for the insight.

I've considered it, but I don't really want to deal being a long distance landlord and refuse to take on the expense of a property management company...I'm just to the point wherein I'm over dumping cash into a money pit, specifically in an area I don't care for anymore.

Rent out your place. It is not that big of a deal being a long distance landlord-I have a property in CO but live in MT-have been renting it out for 4 years with no problems. You will be within 1/2 day drive or so of your rental. That is not really very long distance. Now MT-CO is long distance LOL.

have someone else pay your mortgage or most of it-when the market comes back (and I am sure it will come back strong in that part of CA) you will be in a good position.

You can take depreciation deductions to offset your rental income, and deduct expenses (may even property management types)

Really why would you want to send your credit down the crapper when you don't have to??

good luck!!!