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Well if they want that information, then they can go to city hall to get it then.
That's the attitude that I like to see from a landlord!
Seriously, the tenant has the same right to investigate whether the landlord will be able to keep his end of the bargain as the landlord does. You're welcome to reject applications that are asking for too much information, and as long as you have as steady stream of potential renters, that will work fine for you.
I think most landlords would probably be offended at this information I'm asking. But ones most offended are the ones who are likely to end up in foreclosure. And right now, you can't tell one from another.
In this market, the tenant will do well to investigate the landlord and make sure he/she is in a financial position to honor the lease.
That's the attitude that I like to see from a landlord!
Seriously, the tenant has the same right to investigate whether the landlord will be able to keep his end of the bargain as the landlord does. You're welcome to reject applications that are asking for too much information, and as long as you have as steady stream of potential renters, that will work fine for you.
I think most landlords would probably be offended at this information I'm asking. But ones most offended are the ones who are likely to end up in foreclosure. And right now, you can't tell one from another.
In this market, the tenant will do well to investigate the landlord and make sure he/she is in a financial position to honor the lease.
This is exactly correct. We do not own any property now, but I have rented out 4 different homes and have never had any problem renting them out - because they were all great homes. I am friends with several of my old renters, and exchange Christmas cards with our old landlords.
You may choose to interpret my post, that because I would not live up to your 'demands' I would be more likely to go into foreclosure, but the truth of the matter is, that you just don't sound like someone I would want to be involved with.
Ask questions, by all means but this demanding attitude comes across as entitled and unpleasant to me, and it's a huge turn off as I wonder if you are like this now, how will you be down the road when you are actually in the home? The homes I have rented out have all been my primary residences (while I was working abroad for example), or a unit in a two family home that we owned. These were places I liked, and I prefer to have a good energy, pleasant person living in them.
You just don't sound like that person.
I really don't see how that makes me a likely foreclosure candidate.
But ya know what - you go for it. My guess it that all landlords who like to be on great terms with their tenants will not want anything to do with you, but someone who's desperate to fill their hovel no matter what the cost, will take you in and meet your demands. I wonder what will get you the best final result?
In SOME states if you file a copy of the lease with the county clerk any new owner (including a bank) must comply by the terms of the lease. They can't evict without just cause (ie you don't pay rent or cook crack in the kitchen), can't raise the rent, and must allow you to remain in the rented space until the end of the lease term--or buy you out if you can mutually agree to do so. I'm not sure what the law is in NJ, but it might be worth looking in to.
Frankly it seems absolutely irresponsible to me that the banks aren't allowing tenants to remain and pay rent as a source of income until the property can be sold to a new owner. They want bail-outs yet aren't using all avenues to mitigate loss, not to mention helping keep property values stable by avoiding board ups.
The biggest problem that I have seen with landlords that I have dealt with is that they do not understand (or care about) what the most important aspect of the lease is to the tenant. We all understand that the landlord's biggest concerns are getting paid on time and ensuring that the property isn't damaged. It's reasonable for the landlord to be very concerned about ensuring those aspects of the relationship.
But many landlords do not understand that possession of the property is the most important (IMO) thing that the tenant is getting out of the transaction. And that lack of understanding prevents landlords from objectively determining what is reasonable and what is not reasonable. Just because something is not typical does not mean that it's not reasonable. IMO, it is very reasonable for the tenant to be extremely concerned about all aspects of the LL - T relationship that relate to the tenant's right of possession. In an environment where foreclosures are affecting many tenants, it seems pretty ridiculous to me to say that taking steps to ensure that you don't walk into that situation is unreasonable. It's not ridiculous for a LL to say that you don't want to (or won't) provide a credit report, but if you say that it is unreasonable for a tenant to ask for one, IMO you don't have a full understanding of the relationship.
In SOME states if you file a copy of the lease with the county clerk any new owner (including a bank) must comply by the terms of the lease. They can't evict without just cause (ie you don't pay rent or cook crack in the kitchen), can't raise the rent, and must allow you to remain in the rented space until the end of the lease term--or buy you out if you can mutually agree to do so. I'm not sure what the law is in NJ, but it might be worth looking in to.
You're partially correct, except that even a recorded lease can be terminated by a lender who forecloses a mortgage that was recorded before the lease is recorded. So when the lender forecloses, the lease is (or can be, depending on which state you're in) terminated, and whoever buys the property at the foreclosure sale is not subject to the lease. Even if the lease was recorded.
But most residential landlords will not permit you to record your lease. I wouldn't.
The biggest problem that I have seen with landlords that I have dealt with is that they do not understand (or care about) what the most important aspect of the lease is to the tenant. We all understand that the landlord's biggest concerns are getting paid on time and ensuring that the property isn't damaged. It's reasonable for the landlord to be very concerned about ensuring those aspects of the relationship.
But many landlords do not understand that possession of the property is the most important (IMO) thing that the tenant is getting out of the transaction. And that lack of understanding prevents landlords from objectively determining what is reasonable and what is not reasonable. Just because something is not typical does not mean that it's not reasonable. IMO, it is very reasonable for the tenant to be extremely concerned about all aspects of the LL - T relationship that relate to the tenant's right of possession. In an environment where foreclosures are affecting many tenants, it seems pretty ridiculous to me to say that taking steps to ensure that you don't walk into that situation is unreasonable. It's not ridiculous for a LL to say that you don't want to (or won't) provide a credit report, but if you say that it is unreasonable for a tenant to ask for one, IMO you don't have a full understanding of the relationship.
Ok, so I may not have a full understanding of the relationship. What I did have, was a home to rent out and I was looking for good tenants, and a good landlord/ tenant relationship.
Demanding all of your potential landlord's personal information may not be the way to best go about that.
I would not rent to someone who gave all the indications of being a demanding, nightmare tenant. If that means I don't understand the relationship, then.... oh well. Shrug.
If foreclosure information is available at city hall, go check it out. Ask if the landlord is in danger of foreclosure proceedings, by all means. But to demand PITI information, copies of a landlords pay stubs, proof of employment and a credit check, is just guaranteed to get you off on the wrong foot.
Also the 'buy and bail' crew will have good credit right up until the bank realizes what is going on. Employment verification and statements on PITI isn't going to help you with that at all.
You're partially correct, except that even a recorded lease can be terminated by a lender who forecloses a mortgage that was recorded before the lease is recorded. So when the lender forecloses, the lease is (or can be, depending on which state you're in) terminated, and whoever buys the property at the foreclosure sale is not subject to the lease. Even if the lease was recorded.
But most residential landlords will not permit you to record your lease. I wouldn't.
How would/could you stop a tenant from doing so? A copy of the lease and $12 filing fee seems to be all it would take.
Ok, so I may not have a full understanding of the relationship. What I did have, was a home to rent out and I was looking for good tenants, and a good landlord/ tenant relationship.
Demanding all of your potential landlord's personal information may not be the way to best go about that.
I would not rent to someone who gave all the indications of being a demanding, nightmare tenant. If that means I don't understand the relationship, then.... oh well. Shrug.
If foreclosure information is available at city hall, go check it out. Ask if the landlord is in danger of foreclosure proceedings, by all means. But to demand PITI information, copies of a landlords pay stubs, proof of employment and a credit check, is just guaranteed to get you off on the wrong foot.
Also the 'buy and bail' crew will have good credit right up until the bank realizes what is going on. Employment verification and statements on PITI isn't going to help you with that at all.
You still haven't explained what's wrong with providing your PITI amount to the potential tenant. Not sure you know what PITI is?
As a tenant, I'd be seriously concerned if my rent was $1500 and the monthly mortgage payment was $3000. Wouldn't you be concerned? That would mean the landlord would pay the lender $18,000 more than he collected from me in rent over the course of a 12 month lease, and I'd certainly want to know where that $18,000 was going to come from. I think this is reasonable and no different than the landlord wanting to know that the tenant has a job to pay the monthly rent.
My original question was what can I do to protect myself against a landlord foreclosure. Since you didn't like the fact I was looking for data, how would you suggest I go about getting sufficient information so I was reasonably protected against landlord forelcosure?
You still haven't explained what's wrong with providing your PITI amount to the potential tenant. Not sure you know what PITI is?
As a tenant, I'd be seriously concerned if my rent was $1500 and the monthly mortgage payment was $3000. Wouldn't you be concerned? That would mean the landlord would lose over $18,000 over the course of a 12 month lease, and I'd certainly want to know where that $18,000 was going to come from. I think this is reasonable and no different than the landlord wanting to know where the monthly rent is coming from.
I don't think it's any of your business. If you want to go to city hall and get the mortgage amount and taxes, then you can work it out if you want to. How an owner chooses to pay for their home is really their own call.
The last home we rented, I am SURE cost the owner out of pocket every month. Did I demand to see their bank account statements to see that they could cover any short fall?
No, I just got them chatting and asked what their plans were for the house long term. They told me that they were planning on moving in themselves, but work on their other house was taking longer than expected and they weren't ready yet. They moved in once we moved out, and everything was done on a friendly basis.
Had I gone in all guns blazings with my suspicions and demands, I imagine we would have been living in the dump down the road instead.
By all means do your due dilligance, but the way you intend to go about it sounds like a recipe for failure to me. Although from the sounds if it, everyone who tells you no, will be met with some smug comment from you about how you knew you were right all along!
How would/could you stop a tenant from doing so? A copy of the lease and $12 filing fee seems to be all it would take.
You can't record a copy in any jurisdiction that I have been involved with, which includes lots of different states. Not to mention that even originals of the lease usually aren't notarized, and most recording requirements include notarization. So the county would not let you do it. Recording encumbrances against real estate without a right to do can be serious. Plus, many leases expressly prohibit tenants from recording.
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