B Lee Yes that's exactly correct. They think cause you're close friends or related to you and can pay whenever is convenient for them, or that late fees or pet deposits don't apply to them. And if you have multiple properties they assume you're swimming in money and should be there as charity case for them.
B Lee Very true, it's just easier right off the bat to tell them "I don't rent to people I know." I don't worry about it now since all my rentals are out of state and you have to go through property managers, I never meet my tenants, and just let the management company handel everything else
One of my mentors gave me a tip that I follow till this day. While they are filling out the application, excuse yourself and go to look at their car and see try to see the condition. If it's a huge mess and it's really bad, that's most likely how they are going to treat your property. I learned something from you today. I never knew you could ask for bank statements. I'll be doing that moving forward.
I second that,!!! If the prospective tenant currently resides within 30 miles, once I’ve got past the credit score , personal car inspection, present landlord phone interview, I’ll take a drive to where they currently reside, “I was in the neighborhood and wanted to review your application” If where they live is dirty DON’t Rent to Them.
This is why i let my property management service deal with this, they basically do a govt level background check and send me most of the items you listed for them.
GrahamStephan Great option especially when you're only going with 12+ month leases. The local property management companies in my area only take 10% off your rental income. However, they do charge $500 for the initial dirty work. If you only have 1 rental property that 10% can hurt though.
@@animeshdas9842 It can be huge cut but 8%-10% taken off each months rent for PM is normal. Typically services cheaper than that will provide less than adequate PM.
I’m not even into real estate but this guy is such a good speaker with great cadence and articulation that I found myself watching a whole bunch of his other videos too. Also great advice, ethics and very relatable
I can definitely appreciate everything you’ve said, one thing I would say to consider if they’re trying to move in right away is that there may be a domestic abuse issue. This is not an indication that they’ll be a poor tenant, but just that they’re in a very dangerous or precarious living situation. I’m sure that this is something you already consider, but I think it’s worth mentioning for sure.
@@ThePecanTan Yes, I imagine this is the more common scenario, but you never know what people are going through. That said, evictions are public record so maybe- as long as it has been filed- someone could check to see if that’s what’s going on.
As a foreigner it’s always difficult to find a place to rent, especially those managed by property managers. They don’t seem to understand or accept the fact that there are people who are legally residing in the United States that doesn’t have social security numbers. My husband has ssn and excellent credit score (740+). But simply because I don’t have ssn, we sometimes get rejected instantly they need everyone in the household to have ssn. Fact is, we have never missed a rent payment and always leave the property cleaner than we moved in.
My experience with property management firms is that they will put just about anyone in the property so that they can begin collecting the 10%. If the deal goes bad, they just walk away and let you deal with it. Its a hell of a deal for the PM company; money for nothing.
It must feel so good getting to the point where you can confidently say that about all of your tenants knowing they have the power to see what you're saying about them online. Congrats on getting to where you are now!
All great advice - you will have a very very high chance of getting a fantastic tenant if you follow all of this. Also - only 1 hour per month, that's so awesome! I look forward to getting to that stage, I have plenty of deferred maintenance and headaches to deal with at the early stages of owning a new property.
Thanks Kellan! In the beginning it was wayyyy more than 1 hour per month...oh man, the phone calls of "my xyz doesn't work! This doesn't turn on! How does this work?" got old pretty quick. Thankfully long term tenants + fixing all the bugs = happy graham!
YES! I look forward to working out all of the kinks in the properties, and I see major value in long term tenants, allowing you to spend that time making money elsewhere.
Not gonna lie, I'm low 600's on my credit score but I've never been late on my payments, never called in late or disturbed the peace. I've been with the same place for 3 years and never raised any major issues (unless appliance issue breaks). Point being I'm not a bad guy just bad luck with life.
@@dillionmcwhite5023 I'm a bit green when it comes to this stuff. Would you mind giving an example of what you mean, and what things that affect your score negatively?
I doubt I would ever do it, but I'd imagine you'd have to do a thorough background check and interview them. Also, I can tell you right now that most people aren't going to hand over their bank statements to you. That's personal info. They would just move on to another property.
I would report him and have this guy charged! He's asking for too much! But as a landlord he isn't providing his background check! As a tenant i want to know all about the landlord!
Agreed. I'm a landlord and I've never asked a potential tenant for their bank statements. I shake my head whenever I see this as required documentation for other landlords. It's ridiculously invasive.
My landlord didn't even do a credit check. He said he finds that credit scores mean very little. Rental history and work history are what matter. He spent 5 days looking threw application's and he called my husband's work, my past 2 landlords and all that. First time ive ever had someone not check credit scores
I 100% agree my husband's credit score suxks from medical bills n 18yr old mistakes.. that required a bankruptcy but he makes 130k same job for 7yrs. Never been evicted But we can't get his score past 660
Nice video Graham! I hate hearing about tenants that take advantage of owners, especially those that are sympathetic to a situation they said they went through. Just because they can afford to own doesn't mean they don't need the rent
On AirBnB I make any new airbnb people with now reviews send me picture of their Drivers License or Passport and I always make sure they have ID verification on airbnb too. Also no Autobook! On normal leases though a credit report is a MUST HAVE! Too many people ignore this step and pay dearly for it. Make the effort and you won't have worries later. Don't be afraid to be very selective.
Here's a tip from my uncle who's a landlord. Don't ring up their last landlord but the one *before* that. The last guy is probably happy to get rid of them and will tell you all sorts of good stuff so they'd piss off. The one before that doesn't care and is usually more honest. At least so my uncle says. What do you think about that?
Can you post a copy of a rental agreement. there are so many and it gets really confusing and if all was added, the rental/lease agreement would be 10 pages +. Thanks Stephan, and have SMASHED the like and subscribe buttons and look forward to watching everything.
KISS Graham. Credit score, Income. Credit check, criminal background check. I always laugh when my realtor friend that rents homes wants to see how much money they have in the bank. I'm like WTF. Just because they have money doesn't mean they will pay you! Credibility and income is about all that matters!
The place I'm moving to soon requires a lot of that same type of stuff too. Background check, credit check, reference check, pay stubs, have to make at least 2.5x rent, deposit (holding fee) had to be paid within 24 hours of filling out the application in certified funds, first month rent is due upon move in with certified funds. More restrictions than the last place I rented but it's nice, quiet, and walking distance to work, stores, bus, etc. Also makes me feel like my neighbors will likely be nice and responsible individuals.
The current landlord is not a good reference...This landlord will give a great reference just to get the tenant out. Speak to the previous landlord and ask if they would rent to the tenant again?
out of 24 channels i subbed to, grahams is the only one with the notification bell on! P.S can you make a video about business taxes, income tax, self employment tax, deductibles, etc?
THANKS SO MUCH! I'm always a little iffy going into taxes since it's such a diverse topic, each person's situation is different and a lot is open to interpretation. Also don't want to be on the line as giving tax advice. I have one coming out next week that's kinda in that realm though.
i was wondering if you could just explain how it works instead of giving advice. Like right now i am confused on how the quarterly payments work and a couple other stuff. It would be great if you could explain the fundamentals!
Something I am unclear about. If an applicant passes all criteria credit check, criminal, rental history but you just don't want to rent to them...As far as I can tell there's nothing wrong with this. Correct?
Now I'm really curious about the good signs from a tenant who may be less than perfect by standard means. I.e. the roommates with cosigners or who don't quite meet the 3x income but seem perfect everywhere else or those with poor credit but the right attitude. Is it good if they come prepared with backup such as letters of recommendation or the willingness to pay for an extra month or would this be suspicious? Or does it all simply come down to your gut? Mostly thinking of younger renters or the millennial crowd, what are the risks of taking on renters who have made their financial mistakes and are now working their way out of them and how are they mitigated? So much to learn!
As someone who is on the renting side I find it odd someone has multiple roommates that CANT meet the 3x the rent payment. If they all combine their income and can't make that much, then as a responsible adult they should look for a cheaper place. The places I have rented from do credit checks but if you have low credit then they might still give you a chance by making you pay a higher deposit (again with the verification that you make 3x the rent)
Love the content bro because most of the other real estate channels talks about the Money the good side but never the bad side of real estate love how you keep it real really helps a lot. 👍
the issue for tenants is if they have a good credit then they can buy a home, they don't need to rent. your credit can tank from medical bills, or a divorce.
That was my husband when he was renting about 10 years back. He is a private guy and was like no way I'm telling some stranger how much money I have (well over 6 figures in the bank as he was saving for a home) To be fair he had a perfect a great credit score, a high paying job he had for years, good reference from the previous landlord. He got the place anyway
I would never rent tenants with the attitude. I had a girl ( a lawyer !!!) telling me that she is not comfortable showing me her bank statement. I told her that in that case I am not comfortable renting to her and I hang up the phone on her. NEXT
i do a pre-screen via an emailed application before even showing the property, this allows me to do any preliminary research. Saves a lot of time and headaches.
@@GrahamStephan having access to the realtor database is also so helpful, could verify their previous address verify if they own the home or if they're lying on the app
Worrying about credit scores is pointless, some people just don't use credit. I look for negatives on a credit report like evictions, collection accounts, and so forth. Disqualifying a potential tenant because they don't use credit is silly. Also, if you're renting in lower income areas holding out of a 720 FICO score is going to pretty much ensure you won't rent your property. I think asking people to give you bank statements is overly invasive of someone's privacy and I can promise you you've had good prospects walk away without even filling out an application over it. Verifying employment, while not a bad idea, is increasingly difficult. Most employers simply don't want to be sued and therefore and reluctant to provide information. Especially with larger employers if you call an employment verification number it can be quite a process to get any information. Also for liability reasons for yourself when talking with other landlords I'd recommend keeping any information you give in the realm of what is factual and objectively verifiable. Opinions can get you sued.
Lenders ask for the same thing. Bank statements, employment verification, credit scores. It's good he is being protective as a landlord. So many schemers out there.
A property owner isn't a lender, nor are they a "landlord" as we don't have a system of feudalism in the US. Check someone's credit for negatives, look at their pay stubs, but you don't need to see their bank statements. It's not really any of your business what a tenant spends their money on. Besides, at the end of the day it's really easy to create phony bank statements and pay stubs.
As a realtor myself, I come across many, many people who do lie on their applications. I see nothing wrong with going the extra mile as a landlord to ensure you are getting the right tenant. In my opinion, a landlord should be detail orientated just like a lender. It's their house they are letting you live in, so you should have no problem putting up the extra docs. EDITED TO NOTE: I have seen 4 people get caught creating fake paystubs. There is nothing wrong with going over and beyond.
I've been renting properties for many years now. A lot of people lie on applications because unreasonable owners tend to force them to do so. As with many things it cuts both ways. Starting off a tenant owner relationship with unreasonable demands is going to cost tenants because from a tenant's point of view this kind of nonsense screams nightmare owner that's going to be stopping by the property twice a week. The tenant is also interviewing you because an owner without tenants isn't in any better of a place than a tenant without a property. Graham didn't need to see bank statements to see his problem tenant before they moved in, the credit report showed wild financial and personal instability. The reality of the situation is, especially for first time owners with first rental properties, unrealistic expectations for what your tenant is going to look like can have devastating financial consequences. So the short of it is waiting for someone with a huge income and 800 FICO score to rent your two bedroom in an iffy neighborhood is going to be a long wait.
I could not agree more. The notion that a *good* tenant should be comfortable with a potential landlord looking over their bank statement is nuts to me. Just nuts.
In my daughter's case, she did need to move in ASAP, but it was because she was starting her first full-time job, and it was too far away from our home for her to commute each day. However, she was very happy to discover that her credit score was high enough that she would NOT need a parent to co-sign the lease, even though this would be her first apartment.
This is why I don't rent anymore this is why I rent a room and I'm glad I live in my van I don't have to do applications or pay her rent anymore or security those days are over for me I love living in my van it's the way to go simple living no high-rent no electric bill no nothing and no one in my business either
Hey Graham can you do a video on how to let a tenant know they were not accepted to move in? Also, can you walk us through the eviction process? I want to be a landlord in the near future but those two things I yet to learn!
I think the 3:1 income to rent strategy is absolutely on point! We have too many people out there trying to rent properties that are WAY beyond their means to actually make good on. Then the landlord has to consistently chase rent down and possibly deal with a squatter. Tenant laws have shifted so in favor of the renter that it can become a nightmare for a landlord to collect legitimately owed rent. Getting in front of this is key to a collaborative relationship between landlord and tenant.
The real trick to making sure you're tenant is good is to know them on a human level. What one would call a 'bad tenant' usually has their reasons. The way to get a good tenant is to make sure you're mutually comfortable, respectful, and can maintain a trustworthy relationship.
Great info. I also like to look at their car when you meet them. If it is trashy on the inside, more than likely they will keep your apartment trashy as well.
+hihaters2004 - I get what the "average" credit score for a tenant likely is; however, all due respect, I think you're depriving yourself with the rather low expectations of tenants. There are a lot of tenants out there with good credit but for their own reasons don't care to own. I have 825 credit score (no, this is NOT an exaggeration) and am a confirmed lifelong renter. I won't buy a house for about ten reasons (just three of which are: I don't want to be tied down to one location unable to sell if I want to move, if you're a *careful and patient* apartment hunter you can get NICE places for less than maint + property tax would cost in nice areas, and I HATE commuting so every time I take a new job I get a cheap, nice place like across the street from the job - literally where I am now). I love being at the top of the list of applicants anywhere I choose to live but wouldn't be so if I hadn't been lucky enough to get landlords who were patient enough not to snatch the first "acceptable" tenant with a 680 credit score. Bottom line: my opinion is that your waiting for a tenant with a really good credit score and super references is a win-win situation for both of you, and you should raise your expectations.
It's unfortunate that when it comes to rentals or employment, standards and expectations have become so strict that second chances are hard to come by. Some people get stuck in situations that are beyond their control. That doesn't mean they are bad or irresponsible people. They're not given a second chance to get back on their feet. Back then you can walk up to a stranger and find an apartment for rent.
No one says “no second chances.” As the replies said… it’s a HUGE RISK as a landlord. So… the person seeking a second chance must become resourceful. IE Get a co-signer. If they can’t get a co-signer then that’s even more a red flag… they have no one that trusts them. In sum… don’t be a loser. Use your brain. Make yourself valuable. Be a resourceful person. Everything else will fall in line.
Have to comment to save the younger generation from roommate woes: PLEASE ALSO use the same caution when picking your roommates. If you pick a roommate who is going to leave you hanging in many states you will have to make up the shortcomings. The same sketchy things that applicants do are also what roommates do and it starts with application fees or security deposits or needing a place like, yesterday. Beware.
You should also make a video on what landlords to avoid when being a tenant. For example, one time I rented a place for $1,000 a month 2.5 months into a new job. The place had a huge deposit of $2,000, which I later found out its illegal in Califonia to have a deposit of more than 1.5 months rent. Anyway everything was going great, I had even just purchased a new car. The day I was going to move in I was "let go" from my job 2 days before my probationary period was over. They would not tell me why, I subsequently found out the guy who's job I took was out on disability, got caught faking it, and was reinstated instead of prosecuted. On a side note this is why I hate unions because they protected him and wouldnt do anything for me even though I had been paying dues since day 1. Anyhow, back to the rental. I immediately told the landlord I could not move in due to what just happened and she would have to rent to someone else. I never moved one item into the property. I wasn't even asking for my rent back for the first month just my deposit and last month ($3,000) 7 days later, I went by the place and saw someone else had moved in. So then I contacted my landlord and she would not give me back one penny of the 4 grand I payed her. I wound up suing her in small claims court. I don't know if she was good buddies with the judge or what but I only got $150 back which is insulting. All she lost was at most 6 days of rent, and for that she got to keep $4,000 from me. Its disgusting.
Love this. I just recently purchased my first ever rental property. Im in the process of finding tenants atm. Hopefully I'll be able to find them good apples (:
I watched it all the way through and I am subscribed. So i know your not talking about me. Who does all the bookkeeping and accounting from your real estate properties? do you do it all yourself?
Thanks so much man! I do it all myself. I have a separate bank account for each property which helps. Takes a few hours per home to calculate all the income and expenses, it's rather simple!
I've been thinking for the last few years that I want some way of generating passive (or at least mostly passive) income. Every time I look into it, none of the things I come across really seem right to me. I've also given thought to investing in properties and renting them out. Until recently, this was something I could not do as I was a full-time college student. Now that I've had my job for about the last 8 months, I want to look into doing this. I've also had the problem over the years of a negative mentality such as "I couldn't do this" or "Eh, I don't really feel like it". I've realized I can either keep repeating this cycle or break it and do something about it. As of yesterday, I've started doing some research to arm myself with the knowledge that will be required. I plan on purchasing the real estate book you mentioned in your $100 investment video and checking out more of your videos. Hopefully, I'll be ready to attempt my first purchase next year.
@@GrahamStephan Thanks! I do actually have one question. Is it normal to spend almost no time in having to manage the properties you own? I always think of things breaking and needing repair, but it seems like that doesn't happen for you (or maybe it just wasn't mentioned). I want to be sure it's not time consuming to where I'm having to take time off my normal job to manage it.
I'm a full-time student, and I'm gonna start looking for a place that is closer to my university late this year. One of the things that I worry about is that majority of the ads that I see want references from previous landlords. I've never lived on my own before/ rented, what should I do?
A lot of what is said here makes me extremely nervous to try and rent due to the fact that my situation is extremely precarious. I, at 21, live with my parents due to being 18 when I was planning on moving out...ended in my Mother saying she had over an 80% chance of having uterine cancer...which scared the living shit out of me because not too long ago my Aunt had died from advanced breast cancer. (Which also occasionally increases the odds of having many types of cancer, especially since my Mom's father, sister and grandmother within 5 years had passed away from cancer in many varieties.) Here is where everything immediately goes to hell...My family hadn't raised me to be allowed to understand adult things because they were aware of allowing me to understand the financial situation would end in me putting some things that lead to the knowledge of my stepfather's illegal activities and were worried I'd tell people at school about it, which ended in me being allowed to be tacked with thousands of dollars worth of their debt, an inability to keep money because they would spend it carelessly and force me to save every penny I made to keep things afloat in the house and then an immediate situation of, though I am an adult and should be paying my rent to the landlord himself...I am not even on the lease. They know I am here, yes, but the landlord now has essentially nightmare tenant's and I hate the fact that I am one of them because I will never be able to leave because now I know exactly what is happening around me...and I can't get out. I guess I am just sort of stuck with the debt of my parents and the inability to ever really be a functioning adult.
I know some bad Tenants their right next to me they have to two chickens🐔 over their. At 7:00 is Puk Puk Pukaaak and how do I report them Iam sick 😷 of them.
Is there a pet policy? Does your landlord do periodic inspections? File a complaint with the landlord, let him/her know that you are not able to enjoy the property with all the disturbance.
Hahaha the easiest is first see if it is even legal in your town....many don't allow it. If not then contact the town borough and report them. I get the noise my mom has chickens and my dad gets home at 6am from work, just in time to listen to them making a racket .....I'm pretty sure he "accidentally " left the coup open one night and a fox ate them all....so my mom replace them 🤦♀️
I got an applicant whose credit score is 547!! The daughter score is 447 ! She & her daughter live next door for 5 years. I ran the app thur cozy she file bankrupt 5 years ago lose everything because sick husband waiting for SSI She never was late with her rent so her landlord told me & he's moving back in. I am a newbie a little anxious. Rent $1150 gross $36000 & daughter $36000 She used 75% of her credit. The little voice in my head is saying look for a better score. All the neighborhood tenants love them they're good hard working people just fell on hard times.
As a tenant I feel like my landlord asking for three months of bank statements is a total invasion of privacy. I'll gladly show my deposits for 3-6 months, but I wouldn't feel comfortable printing out all my transactions.
I think that the reason tenants look out for each other is just to screw over the person that has screwed them over. This is not always the case, though.
I have seen your bad tenant vedio too and I think because of that bad experience you are very careful now maybe loosing some good people too but its understandable.
In you video at 5:00, when you mentioned about a tenant want to move in asap, but i have a total different case than you. My tenant paid me 2 months of deposit and move in partially of her boxes on her first day but did not move in until now since June. Have you had this kinda case before and should i be concern? Altho her credit and bg check is perfectly fine.
you have to talk to the landlord before the last landlord, if they are horrible tenants and still living at the last place the landlord will say they are good so he can get rid of them on to you!
I’m in California. Southern California. 720 and 3 times the rent? Good luck. I can promise you that 80% of the population doesn’t fit that. There’s also a HUGE portion of the population that might have a low score because of student debt alone, with an otherwise spotless record. I really love your videos and I really enjoy the information that you share with those two criteria are just way out of touch and really unfair to some other wires extremely good and wonderful people that would make amazing tenants. I would strongly suggest revisiting the way that you look at those two things
Another tip: look inside their car on the first meeting. If their car is not clean, they won’t take care of your place. I have only been screwed once on this point because the car was a rental.
Great video. How often do you increase the rent and by what percentage if one year agreement and tenant renews? And If you sign a multi year agreement, do you specify that “rent will go up by ..... every ..... years/months”. I feel that not increasing the rent slowly adds up to a lot of money. But if u have a good tenant then you want him/her to be happy.
I've yet to raise rents! Only when a tenant moves out. At this point I've had such amazing tenant's that I think it's worth it to get slightly lower rents (not by much) to keep them happy long term. Like two of my tenant's have been there since the beginning of 6 years ago and they're amazing. Never paid late. Keep the place like they own it. Couldn't be happier. But as tenant's move out I'll just get market rate. I signed one multi year lease agreement recently with small price increased every year. Otherwise I'll just do it on a case by case basis.
I would raise the rent by the inflation rate. At least that way you're making a little more each year and if your expenses take a big jump one year, you won't have to try to get a big increase that might cause a good tenant to consider moving.
Don’t always look at medical bills in collections. I am disabled so I have $11000 a year after insurance every year no matter what. That does not count medication cast.
Another great video, I'm binge watching these videos. I just bought a condo here on the beach in Florida and now I am looking for a second property to rent, so I will learn from your mistakes. Good stuff. Like smashed!
My mother is a landlord with about 7 properties/ 10 units, and one of our two family properties have been trashed twice by the tenants. Like both apartments were trashed by both tenants separately. They were dumping their garbage and cat litter in the backyard when they had weekly trash pick up. I’m a landlord too so I hope this doesn’t happen to me anytime soon!
Not only credit check, you got to do criminal background checks as well, any jail records, drugs, any misdemeanor or felony convictions, any drunk driving records? I do not want any drunks or drug addicts to live in my rental property.
I have bad credit because of a illness that left me unable to work for over two years. Have never left a rental in anything but better than when I got it. Obviously, there is an exception to every rule but it is unfair to group everyone that way.
Meet the tenants children...be clear and site example, even if the story is made up, that tenants have been evicted for the following reasons. Don't waiver/waffle...be strict.
A good credit score could be from a lot of chapter 13. I've seen that . I look at recent inquiries tells me what I need to know. Someone with a decent score won't have 100 inquiries . Rented to someone with bad credit paid well I guess it depends on the person. Evictions is a red flag.. Anyone who uses their job for housing don't trust that. Got screwed on that one .!!
I'd like to think that I would just shrug my shoulders and say "blatant racism"... the folks of different races are going to think that anyway. The folks that are also white would just get confused... priceless! Yeah probably not... but it would be fun, everyone's a friggin' victim these days.. I'd break down the decision making criteria, and show them how they stack up in the eyes of a person being asked to trust them with possession of a huge portion of their net worth.
Landlords ask for bank statements? No one ever asked me that. I wouldn't show it because I rent under my budget and don't want a landlord to increase the rent based on what I could afford.
Have you ever run into someone that doesn't have a credit score simply because they don't like to deal with debt? I know that is how I operate because I find it makes everything simpler and you can only buy what you can afford.
Graham Stephan, I am an immigrant from Russia, and I live in USA debt free and always save money. I have no idea what the credit score is. But guys like you would never rent me anything, besause it's better to safe than sorry. It's not fair!
Really like your channel Stephan, great info as always. What's a good tenant screening service to use? Had 3 terrible past tenants and now I'm ready to make radical changes with my screening process.
Whenever you call employers: open the call with “hi I was calling to see if you are hiring right now.” For landlords “Hi I was calling to see if you have any available properties to rent.” You will catch a bogus reference quickly this way when they act confused, aren’t an employer, or aren’t a landlord.
I wouldn't want to rent from a landlord who judges people on paper because what kind of neighbors will I have? Also should a landlord really be going on the internet? Tenants already have very little privacy as it is. Oakland just banned landlords from doing criminal background checks, part of a larger trend that frowns on landlords who "screen" too aggressively. Credit score and even "background" are often proxies for illegal discrimination against minorities.
Months of bank records? 720 credit score? Who gives bank records to a future landlord? I certainly wouldn't. People around here with a 720 or better credit score, buy their own property for the most part, unless it's a temp living situation. I mean, I would feel weird asking someone for months worth of bank statements.
I have a problem with my old landlord because he sold the old building and every time I google the address a whole different company pops up . I didn’t get evicted or anything I honestly just can’t find my old landlord
Great video a add on or add in where and what you can use to look this information up. Back round checks etc. Yes may cost some $ long as its worth it and something or sites you would use.
Also, never rent to friends, family, or coworkers. I learned that the hard way.
Tommy Fo Why not? Will they be late on rent and stuff because they think they're "cool" with you?
B Lee Yes that's exactly correct. They think cause you're close friends or related to you and can pay whenever is convenient for them, or that late fees or pet deposits don't apply to them. And if you have multiple properties they assume you're swimming in money and should be there as charity case for them.
Tommy Fo Kinda shows how people are, if they think they can take advantage of you, they will.
B Lee Very true, it's just easier right off the bat to tell them "I don't rent to people I know." I don't worry about it now since all my rentals are out of state and you have to go through property managers, I never meet my tenants, and just let the management company handel everything else
Tommy Fo True that, thanks for your insight
One of my mentors gave me a tip that I follow till this day. While they are filling out the application, excuse yourself and go to look at their car and see try to see the condition. If it's a huge mess and it's really bad, that's most likely how they are going to treat your property.
I learned something from you today. I never knew you could ask for bank statements. I'll be doing that moving forward.
Carl B
you can ask them for anything you want. but the prospective tenant can also refuse and walk away.
@@duanejackson6718 Sure they can. How bad do they want the rental?
Lol I drive a beater and have perfect credit and own my home
I second that,!!!
If the prospective tenant currently resides within 30 miles, once I’ve got past the credit score , personal car inspection, present landlord phone interview, I’ll take a drive to where they currently reside,
“I was in the neighborhood and wanted to review your application”
If where they live is dirty DON’t Rent to Them.
@@RJ-sr5dvno dont do that. Dont stalk prospective tenants. That's weird and invasive.
This is why i let my property management service deal with this, they basically do a govt level background check and send me most of the items you listed for them.
Agreed. This could really, really help - especially by taking the emotion out of the equation.
GrahamStephan Great option especially when you're only going with 12+ month leases. The local property management companies in my area only take 10% off your rental income. However, they do charge $500 for the initial dirty work. If you only have 1 rental property that 10% can hurt though.
what would be a good recommendation for a property management service?
Property management takes 10% off the top. That's a HUGE cut for most properties.
@@animeshdas9842 It can be huge cut but 8%-10% taken off each months rent for PM is normal. Typically services cheaper than that will provide less than adequate PM.
I’m not even into real estate but this guy is such a good speaker with great cadence and articulation that I found myself watching a whole bunch of his other videos too. Also great advice, ethics and very relatable
Thanks so much!!
I can definitely appreciate everything you’ve said, one thing I would say to consider if they’re trying to move in right away is that there may be a domestic abuse issue. This is not an indication that they’ll be a poor tenant, but just that they’re in a very dangerous or precarious living situation. I’m sure that this is something you already consider, but I think it’s worth mentioning for sure.
Good point. In my experience, potential tenants who want to move in right away either have been or soon will be evicted.
@@ThePecanTan Yes, I imagine this is the more common scenario, but you never know what people are going through. That said, evictions are public record so maybe- as long as it has been filed- someone could check to see if that’s what’s going on.
As a foreigner it’s always difficult to find a place to rent, especially those managed by property managers. They don’t seem to understand or accept the fact that there are people who are legally residing in the United States that doesn’t have social security numbers. My husband has ssn and excellent credit score (740+). But simply because I don’t have ssn, we sometimes get rejected instantly they need everyone in the household to have ssn. Fact is, we have never missed a rent payment and always leave the property cleaner than we moved in.
How are you legal without a ss number? You lie
😂😂
@@dcg590 Student and non working could be scenarios that’s legal and not having social security number
The moment you are allowed to work, you can apply for a SSN.
My experience with property management firms is that they will put just about anyone in the property so that they can begin collecting the 10%. If the deal goes bad, they just walk away and let you deal with it. Its a hell of a deal for the PM company; money for nothing.
It must feel so good getting to the point where you can confidently say that about all of your tenants knowing they have the power to see what you're saying about them online. Congrats on getting to where you are now!
I watched this with the goal of finding out how I can be the best possible tenant candidate for landlords.
Pay rent on time, follow the rules and be nice.
All great advice - you will have a very very high chance of getting a fantastic tenant if you follow all of this. Also - only 1 hour per month, that's so awesome! I look forward to getting to that stage, I have plenty of deferred maintenance and headaches to deal with at the early stages of owning a new property.
Thanks Kellan! In the beginning it was wayyyy more than 1 hour per month...oh man, the phone calls of "my xyz doesn't work! This doesn't turn on! How does this work?" got old pretty quick. Thankfully long term tenants + fixing all the bugs = happy graham!
YES! I look forward to working out all of the kinks in the properties, and I see major value in long term tenants, allowing you to spend that time making money elsewhere.
Not gonna lie, I'm low 600's on my credit score but I've never been late on my payments, never called in late or disturbed the peace. I've been with the same place for 3 years and never raised any major issues (unless appliance issue breaks). Point being I'm not a bad guy just bad luck with life.
Bad luck can affect a score FAST! Doesn't mean the person is bad at all!
@@dillionmcwhite5023 I'm a bit green when it comes to this stuff. Would you mind giving an example of what you mean, and what things that affect your score negatively?
Stop associating yourself with negativity. Instead say I am going to fixe my credit
Sounds like an excuse. Instead of blaming bad luck, make the effort to fix your credit.
Has absolutely nothing to do with luck lol
I doubt I would ever do it, but I'd imagine you'd have to do a thorough background check and interview them. Also, I can tell you right now that most people aren't going to hand over their bank statements to you. That's personal info. They would just move on to another property.
I would report him and have this guy charged! He's asking for too much! But as a landlord he isn't providing his background check! As a tenant i want to know all about the landlord!
Agreed. I'm a landlord and I've never asked a potential tenant for their bank statements. I shake my head whenever I see this as required documentation for other landlords. It's ridiculously invasive.
My landlord didn't even do a credit check. He said he finds that credit scores mean very little. Rental history and work history are what matter. He spent 5 days looking threw application's and he called my husband's work, my past 2 landlords and all that. First time ive ever had someone not check credit scores
I 100% agree my husband's credit score suxks from medical bills n 18yr old mistakes.. that required a bankruptcy but he makes 130k same job for 7yrs. Never been evicted But we can't get his score past 660
Nice video Graham! I hate hearing about tenants that take advantage of owners, especially those that are sympathetic to a situation they said they went through. Just because they can afford to own doesn't mean they don't need the rent
Thanks man! Oh totally, some tenants out there are just plain CRAZY.
On AirBnB I make any new airbnb people with now reviews send me picture of their Drivers License or Passport and I always make sure they have ID verification on airbnb too. Also no Autobook! On normal leases though a credit report is a MUST HAVE! Too many people ignore this step and pay dearly for it. Make the effort and you won't have worries later. Don't be afraid to be very selective.
Here's a tip from my uncle who's a landlord. Don't ring up their last landlord but the one *before* that. The last guy is probably happy to get rid of them and will tell you all sorts of good stuff so they'd piss off. The one before that doesn't care and is usually more honest. At least so my uncle says.
What do you think about that?
smart!
Can you post a copy of a rental agreement. there are so many and it gets really confusing and if all was added, the rental/lease agreement would be 10 pages +. Thanks Stephan, and have SMASHED the like and subscribe buttons and look forward to watching everything.
That moment when you realize that your mentor hate you because your Credit score is 595 🤦♂️🤦♂️ 😭😭
KISS Graham. Credit score, Income. Credit check, criminal background check. I always laugh when my realtor friend that rents homes wants to see how much money they have in the bank. I'm like WTF. Just because they have money doesn't mean they will pay you! Credibility and income is about all that matters!
The place I'm moving to soon requires a lot of that same type of stuff too. Background check, credit check, reference check, pay stubs, have to make at least 2.5x rent, deposit (holding fee) had to be paid within 24 hours of filling out the application in certified funds, first month rent is due upon move in with certified funds. More restrictions than the last place I rented but it's nice, quiet, and walking distance to work, stores, bus, etc. Also makes me feel like my neighbors will likely be nice and responsible individuals.
The current landlord is not a good reference...This landlord will give a great reference just to get the tenant out. Speak to the previous landlord and ask if they would rent to the tenant again?
out of 24 channels i subbed to, grahams is the only one with the notification bell on!
P.S can you make a video about business taxes, income tax, self employment tax, deductibles, etc?
THANKS SO MUCH! I'm always a little iffy going into taxes since it's such a diverse topic, each person's situation is different and a lot is open to interpretation. Also don't want to be on the line as giving tax advice. I have one coming out next week that's kinda in that realm though.
i was wondering if you could just explain how it works instead of giving advice. Like right now i am confused on how the quarterly payments work and a couple other stuff. It would be great if you could explain the fundamentals!
I don't get notifications yet? haha
Something I am unclear about. If an applicant passes all criteria credit check, criminal, rental history but you just don't want to rent to them...As far as I can tell there's nothing wrong with this. Correct?
Now I'm really curious about the good signs from a tenant who may be less than perfect by standard means. I.e. the roommates with cosigners or who don't quite meet the 3x income but seem perfect everywhere else or those with poor credit but the right attitude. Is it good if they come prepared with backup such as letters of recommendation or the willingness to pay for an extra month or would this be suspicious? Or does it all simply come down to your gut? Mostly thinking of younger renters or the millennial crowd, what are the risks of taking on renters who have made their financial mistakes and are now working their way out of them and how are they mitigated? So much to learn!
As someone who is on the renting side I find it odd someone has multiple roommates that CANT meet the 3x the rent payment. If they all combine their income and can't make that much, then as a responsible adult they should look for a cheaper place. The places I have rented from do credit checks but if you have low credit then they might still give you a chance by making you pay a higher deposit (again with the verification that you make 3x the rent)
Love the content bro because most of the other real estate channels talks about the Money the good side but never the bad side of real estate love how you keep it real really helps a lot. 👍
Thanks so much!!
Great job explaining the screening process. Thanks for sharing with everyone! Good vibes to you!
Thanks!
the issue for tenants is if they have a good credit then they can buy a home, they don't need to rent. your credit can tank from medical bills, or a divorce.
I would not be giving a potential landlord my bank statements. I've never been asked in my 15 years of renting, and I would walk away
This guys strikes me as someone who rents properties in nice areas, houses most likely. He's not starving for tenants.
I work at a bank and get customers daily asking for multiple months of previous statements for their rental applications.
That was my husband when he was renting about 10 years back. He is a private guy and was like no way I'm telling some stranger how much money I have (well over 6 figures in the bank as he was saving for a home) To be fair he had a perfect a great credit score, a high paying job he had for years, good reference from the previous landlord. He got the place anyway
I would never rent tenants with the attitude. I had a girl ( a lawyer !!!) telling me that she is not comfortable showing me her bank statement. I told her that in that case I am not comfortable renting to her and I hang up the phone on her. NEXT
Well, welcome to 2021. Post covid. Good luck getting an apartment now w out basicallybperfect freaking everything
i do a pre-screen via an emailed application before even showing the property, this allows me to do any preliminary research. Saves a lot of time and headaches.
That's awesome!
@@GrahamStephan having access to the realtor database is also so helpful, could verify their previous address verify if they own the home or if they're lying on the app
Worrying about credit scores is pointless, some people just don't use credit. I look for negatives on a credit report like evictions, collection accounts, and so forth. Disqualifying a potential tenant because they don't use credit is silly. Also, if you're renting in lower income areas holding out of a 720 FICO score is going to pretty much ensure you won't rent your property.
I think asking people to give you bank statements is overly invasive of someone's privacy and I can promise you you've had good prospects walk away without even filling out an application over it. Verifying employment, while not a bad idea, is increasingly difficult. Most employers simply don't want to be sued and therefore and reluctant to provide information. Especially with larger employers if you call an employment verification number it can be quite a process to get any information. Also for liability reasons for yourself when talking with other landlords I'd recommend keeping any information you give in the realm of what is factual and objectively verifiable. Opinions can get you sued.
Lenders ask for the same thing. Bank statements, employment verification, credit scores. It's good he is being protective as a landlord. So many schemers out there.
A property owner isn't a lender, nor are they a "landlord" as we don't have a system of feudalism in the US. Check someone's credit for negatives, look at their pay stubs, but you don't need to see their bank statements. It's not really any of your business what a tenant spends their money on. Besides, at the end of the day it's really easy to create phony bank statements and pay stubs.
As a realtor myself, I come across many, many people who do lie on their applications. I see nothing wrong with going the extra mile as a landlord to ensure you are getting the right tenant. In my opinion, a landlord should be detail orientated just like a lender. It's their house they are letting you live in, so you should have no problem putting up the extra docs. EDITED TO NOTE: I have seen 4 people get caught creating fake paystubs. There is nothing wrong with going over and beyond.
I've been renting properties for many years now. A lot of people lie on applications because unreasonable owners tend to force them to do so. As with many things it cuts both ways. Starting off a tenant owner relationship with unreasonable demands is going to cost tenants because from a tenant's point of view this kind of nonsense screams nightmare owner that's going to be stopping by the property twice a week. The tenant is also interviewing you because an owner without tenants isn't in any better of a place than a tenant without a property.
Graham didn't need to see bank statements to see his problem tenant before they moved in, the credit report showed wild financial and personal instability. The reality of the situation is, especially for first time owners with first rental properties, unrealistic expectations for what your tenant is going to look like can have devastating financial consequences. So the short of it is waiting for someone with a huge income and 800 FICO score to rent your two bedroom in an iffy neighborhood is going to be a long wait.
I could not agree more. The notion that a *good* tenant should be comfortable with a potential landlord looking over their bank statement is nuts to me. Just nuts.
I was among those who asked in your previous video about screening tenants, thank you for another great video! Wish you all the best
You got it!! 🙌🏼
In my daughter's case, she did need to move in ASAP, but it was because she was starting her first full-time job, and it was too far away from our home for her to commute each day. However, she was very happy to discover that her credit score was high enough that she would NOT need a parent to co-sign the lease, even though this would be her first apartment.
I've learned a lot from you and I'm the kind of person that doesn't say this commonly, thanks again
This is why I don't rent anymore this is why I rent a room and I'm glad I live in my van I don't have to do applications or pay her rent anymore or security those days are over for me I love living in my van it's the way to go simple living no high-rent no electric bill no nothing and no one in my business either
Only recently discovered the channel and I've now watched tonnes of your videos. The advice and insights you've given have been phenomenal!
Thanks so much!!
Hey Graham can you do a video on how to let a tenant know they were not accepted to move in? Also, can you walk us through the eviction process? I want to be a landlord in the near future but those two things I yet to learn!
I usually just say “I’m sorry but we have accepted another tenant” and that’s been the truth.
I think the 3:1 income to rent strategy is absolutely on point! We have too many people out there trying to rent properties that are WAY beyond their means to actually make good on. Then the landlord has to consistently chase rent down and possibly deal with a squatter. Tenant laws have shifted so in favor of the renter that it can become a nightmare for a landlord to collect legitimately owed rent. Getting in front of this is key to a collaborative relationship between landlord and tenant.
The real trick to making sure you're tenant is good is to know them on a human level. What one would call a 'bad tenant' usually has their reasons. The way to get a good tenant is to make sure you're mutually comfortable, respectful, and can maintain a trustworthy relationship.
Great info. I also like to look at their car when you meet them. If it is trashy on the inside, more than likely they will keep your apartment trashy as well.
720 credit score 😂. I’m a landlord and I wouldn’t have tenants using this model. Cali is different I guess.
hihaters2004 - Exactly! 😂
Ha no way 😂 What market are you in?
GrahamStephan My tenants would be home owners if they had 720 credit scores. I’m in Mississippi.
GrahamStephan Way too high
+hihaters2004 - I get what the "average" credit score for a tenant likely is; however, all due respect, I think you're depriving yourself with the rather low expectations of tenants. There are a lot of tenants out there with good credit but for their own reasons don't care to own. I have 825 credit score (no, this is NOT an exaggeration) and am a confirmed lifelong renter. I won't buy a house for about ten reasons (just three of which are: I don't want to be tied down to one location unable to sell if I want to move, if you're a *careful and patient* apartment hunter you can get NICE places for less than maint + property tax would cost in nice areas, and I HATE commuting so every time I take a new job I get a cheap, nice place like across the street from the job - literally where I am now). I love being at the top of the list of applicants anywhere I choose to live but wouldn't be so if I hadn't been lucky enough to get landlords who were patient enough not to snatch the first "acceptable" tenant with a 680 credit score. Bottom line: my opinion is that your waiting for a tenant with a really good credit score and super references is a win-win situation for both of you, and you should raise your expectations.
It's unfortunate that when it comes to rentals or employment, standards and expectations have become so strict that second chances are hard to come by. Some people get stuck in situations that are beyond their control. That doesn't mean they are bad or irresponsible people. They're not given a second chance to get back on their feet. Back then you can walk up to a stranger and find an apartment for rent.
Why should a landlord risk their livelihood for someone to ‘get back on their feet’? Owning property is a business not a charity
@@dcg590 I never said that it should be a charity.
No one says “no second chances.”
As the replies said… it’s a HUGE RISK as a landlord.
So… the person seeking a second chance must become resourceful.
IE Get a co-signer. If they can’t get a co-signer then that’s even more a red flag… they have no one that trusts them.
In sum… don’t be a loser. Use your brain. Make yourself valuable. Be a resourceful person. Everything else will fall in line.
Congratulations on you 1 million subs 💯🤯🎉🎉🎉🎉😋
7:35 another way is to call the number and ask if they’re renting any houses or apartment. It’ll throw them off
Have to comment to save the younger generation from roommate woes: PLEASE ALSO use the same caution when picking your roommates. If you pick a roommate who is going to leave you hanging in many states you will have to make up the shortcomings. The same sketchy things that applicants do are also what roommates do and it starts with application fees or security deposits or needing a place like, yesterday. Beware.
i always want to move in asap. usually the rent from my previous place is paid for the next month too
You should also make a video on what landlords to avoid when being a tenant. For example, one time I rented a place for $1,000 a month 2.5 months into a new job. The place had a huge deposit of $2,000, which I later found out its illegal in Califonia to have a deposit of more than 1.5 months rent. Anyway everything was going great, I had even just purchased a new car. The day I was going to move in I was "let go" from my job 2 days before my probationary period was over. They would not tell me why, I subsequently found out the guy who's job I took was out on disability, got caught faking it, and was reinstated instead of prosecuted. On a side note this is why I hate unions because they protected him and wouldnt do anything for me even though I had been paying dues since day 1. Anyhow, back to the rental. I immediately told the landlord I could not move in due to what just happened and she would have to rent to someone else. I never moved one item into the property. I wasn't even asking for my rent back for the first month just my deposit and last month ($3,000) 7 days later, I went by the place and saw someone else had moved in. So then I contacted my landlord and she would not give me back one penny of the 4 grand I payed her. I wound up suing her in small claims court. I don't know if she was good buddies with the judge or what but I only got $150 back which is insulting. All she lost was at most 6 days of rent, and for that she got to keep $4,000 from me. Its disgusting.
Love this. I just recently purchased my first ever rental property. Im in the process of finding tenants atm. Hopefully I'll be able to find them good apples (:
Great information! Thanks for the video! Definitely will save among my favorites.
Thanks Miguel!
I had a roommate with bad credit score once, never again.
I watched it all the way through and I am subscribed. So i know your not talking about me. Who does all the bookkeeping and accounting from your real estate properties? do you do it all yourself?
Thanks so much man! I do it all myself. I have a separate bank account for each property which helps. Takes a few hours per home to calculate all the income and expenses, it's rather simple!
Okay that’s interesting. Maybe that could be a video topic on how you keep track of all that stuff. Thanks!
I've been thinking for the last few years that I want some way of generating passive (or at least mostly passive) income. Every time I look into it, none of the things I come across really seem right to me. I've also given thought to investing in properties and renting them out. Until recently, this was something I could not do as I was a full-time college student. Now that I've had my job for about the last 8 months, I want to look into doing this. I've also had the problem over the years of a negative mentality such as "I couldn't do this" or "Eh, I don't really feel like it". I've realized I can either keep repeating this cycle or break it and do something about it. As of yesterday, I've started doing some research to arm myself with the knowledge that will be required. I plan on purchasing the real estate book you mentioned in your $100 investment video and checking out more of your videos. Hopefully, I'll be ready to attempt my first purchase next year.
AWESOME!! :) Enjoy!
@@GrahamStephan Thanks! I do actually have one question. Is it normal to spend almost no time in having to manage the properties you own? I always think of things breaking and needing repair, but it seems like that doesn't happen for you (or maybe it just wasn't mentioned). I want to be sure it's not time consuming to where I'm having to take time off my normal job to manage it.
I'm a full-time student, and I'm gonna start looking for a place that is closer to my university late this year. One of the things that I worry about is that majority of the ads that I see want references from previous landlords. I've never lived on my own before/ rented, what should I do?
xenga92 use your parents as reference, that's how I got my first rental
you can sleep in the car
I wish that when I started college I had bought a duplex and rented most of it out. Would have been a great investment!
@@RandDickson. You wish? Without money, you can dream and wish all day long.
@@hieveryone.8508 I worked full time through college. I paid a ton for student housing. I then bought a house. Could have totally bought a duplex.
Do a surprise visit to the tenants current home. You can see how they live.
A lot of what is said here makes me extremely nervous to try and rent due to the fact that my situation is extremely precarious. I, at 21, live with my parents due to being 18 when I was planning on moving out...ended in my Mother saying she had over an 80% chance of having uterine cancer...which scared the living shit out of me because not too long ago my Aunt had died from advanced breast cancer. (Which also occasionally increases the odds of having many types of cancer, especially since my Mom's father, sister and grandmother within 5 years had passed away from cancer in many varieties.) Here is where everything immediately goes to hell...My family hadn't raised me to be allowed to understand adult things because they were aware of allowing me to understand the financial situation would end in me putting some things that lead to the knowledge of my stepfather's illegal activities and were worried I'd tell people at school about it, which ended in me being allowed to be tacked with thousands of dollars worth of their debt, an inability to keep money because they would spend it carelessly and force me to save every penny I made to keep things afloat in the house and then an immediate situation of, though I am an adult and should be paying my rent to the landlord himself...I am not even on the lease. They know I am here, yes, but the landlord now has essentially nightmare tenant's and I hate the fact that I am one of them because I will never be able to leave because now I know exactly what is happening around me...and I can't get out. I guess I am just sort of stuck with the debt of my parents and the inability to ever really be a functioning adult.
I know some bad Tenants their right next to me they have to two chickens🐔 over their. At 7:00 is Puk Puk Pukaaak and how do I report them Iam sick 😷 of them.
Is there a pet policy? Does your landlord do periodic inspections? File a complaint with the landlord, let him/her know that you are not able to enjoy the property with all the disturbance.
your comment made me laugh. " Puk Puk Pukaaak".
@@LevelUP84 That also cracked me up...😂
Hahaha the easiest is first see if it is even legal in your town....many don't allow it. If not then contact the town borough and report them. I get the noise my mom has chickens and my dad gets home at 6am from work, just in time to listen to them making a racket .....I'm pretty sure he "accidentally " left the coup open one night and a fox ate them all....so my mom replace them 🤦♀️
I got an applicant whose credit score is 547!! The daughter score is 447 ! She & her daughter live next door for 5 years. I ran the app thur cozy she file bankrupt 5 years ago lose everything because sick husband waiting for SSI
She never was late with her rent so her landlord told me & he's moving back in. I am a newbie a little anxious. Rent $1150 gross $36000 & daughter $36000 She used 75% of her credit. The little voice in my head is saying look for a better score. All the neighborhood tenants love them they're good hard working people just fell on hard times.
Love everything you've taught me in the last week I've known about you. like 10 videos in, subbed, really appreciate everything!
Ah thanks!!
As a tenant I feel like my landlord asking for three months of bank statements is a total invasion of privacy. I'll gladly show my deposits for 3-6 months, but I wouldn't feel comfortable printing out all my transactions.
I think that the reason tenants look out for each other is just to screw over the person that has screwed them over. This is not always the case, though.
I have seen your bad tenant vedio too and I think because of that bad experience you are very careful now maybe loosing some good people too but its understandable.
What I learned as a tenant.....never link your cell number to your Facebook lol I’m just kidding, great info grahamn
The first and biggest rule is make the deposits matters !
In you video at 5:00, when you mentioned about a tenant want to move in asap, but i have a total different case than you. My tenant paid me 2 months of deposit and move in partially of her boxes on her first day but did not move in until now since June. Have you had this kinda case before and should i be concern? Altho her credit and bg check is perfectly fine.
Hi Sally. How did this go?
Update?
She's using your place as a shag shack or flophouse. I'm sure she has another place, probably living with the boyfriend.
Sally Chan what if she doesn't have any money after those two months are up…
Stephan, you;re the man, keep up the great videos! have a great new year! greetings from Paraguay
Thanks Rodrigo, happy new year to you too!
3x the rent? Jesus, no wonder no one can find a place to live.
That's standard in rentals.
that's about 30% of income which is the most you should spend on housing
this is why people wind up renting rooms or moving in with family as adults. Landlords have gotten so greedy the past 15 years.
Don’t want to rent to people who can’t afford to live. It’s business.
you have to talk to the landlord before the last landlord, if they are horrible tenants and still living at the last place the landlord will say they are good so he can get rid of them on to you!
What if they’re just actually good tenants? :)
I’m in California. Southern California. 720 and 3 times the rent? Good luck. I can promise you that 80% of the population doesn’t fit that. There’s also a HUGE portion of the population that might have a low score because of student debt alone, with an otherwise spotless record. I really love your videos and I really enjoy the information that you share with those two criteria are just way out of touch and really unfair to some other wires extremely good and wonderful people that would make amazing tenants. I would strongly suggest revisiting the way that you look at those two things
Another tip: look inside their car on the first meeting. If their car is not clean, they won’t take care of your place. I have only been screwed once on this point because the car was a rental.
Great video. How often do you increase the rent and by what percentage if one year agreement and tenant renews? And If you sign a multi year agreement, do you specify that “rent will go up by ..... every ..... years/months”. I feel that not increasing the rent slowly adds up to a lot of money. But if u have a good tenant then you want him/her to be happy.
Michael Scott following
I've yet to raise rents! Only when a tenant moves out. At this point I've had such amazing tenant's that I think it's worth it to get slightly lower rents (not by much) to keep them happy long term. Like two of my tenant's have been there since the beginning of 6 years ago and they're amazing. Never paid late. Keep the place like they own it. Couldn't be happier. But as tenant's move out I'll just get market rate. I signed one multi year lease agreement recently with small price increased every year. Otherwise I'll just do it on a case by case basis.
I would raise the rent by the inflation rate. At least that way you're making a little more each year and if your expenses take a big jump one year, you won't have to try to get a big increase that might cause a good tenant to consider moving.
Don’t always look at medical bills in collections. I am disabled so I have $11000 a year after insurance every year no matter what. That does not count medication cast.
Another great video, I'm binge watching these videos. I just bought a condo here on the beach in Florida and now I am looking for a second property to rent, so I will learn from your mistakes. Good stuff. Like smashed!
thanks so much!!
Asking the previous landlord could be deceiving if that other landlord wants to get rid of the tenant.
Great with phenomenal information - Thank You !!
My mother is a landlord with about 7 properties/ 10 units, and one of our two family properties have been trashed twice by the tenants. Like both apartments were trashed by both tenants separately. They were dumping their garbage and cat litter in the backyard when they had weekly trash pick up. I’m a landlord too so I hope this doesn’t happen to me anytime soon!
That’s crazy!
Again, I always click the thumbs up or like button as soon as I open the video!
Not only credit check, you got to do criminal background checks as well, any jail records, drugs, any misdemeanor or felony convictions, any drunk driving records? I do not want any drunks or drug addicts to live in my rental property.
Absolutely right. There is nothing as destructive as a meth addict in your property. They are even worse than hoarders.
My lord watching this channel is impossible without adblock. Holy crap.
😬
I have bad credit because of a illness that left me unable to work for over two years. Have never left a rental in anything but better than when I got it. Obviously, there is an exception to every rule but it is unfair to group everyone that way.
You're not getting that apartment, Savannagh!
Meet the tenants children...be clear and site example, even if the story is made up, that tenants have been evicted for the following reasons. Don't waiver/waffle...be strict.
Buying my first property... Landlording on autopilot had some good techniques... Alot of overlap here too
A good credit score could be from a lot of chapter 13. I've seen that . I look at recent inquiries tells me what I need to know. Someone with a decent score won't have 100 inquiries . Rented to someone with bad credit paid well I guess it depends on the person. Evictions is a red flag.. Anyone who uses their job for housing don't trust that. Got screwed on that one .!!
Some potential tenants will refuse credit checks
Do you tell your applicants why they're denied?
I'd like to think that I would just shrug my shoulders and say "blatant racism"... the folks of different races are going to think that anyway. The folks that are also white would just get confused... priceless!
Yeah probably not... but it would be fun, everyone's a friggin' victim these days..
I'd break down the decision making criteria, and show them how they stack up in the eyes of a person being asked to trust them with possession of a huge portion of their net worth.
If he screens the applicants in the beginning, I'm sure they know why. Usually, low credit score, don't meet income threshold or history of evictions.
Great video thanks for the info. A lot of potential pitfalls I hadn't thought of.
credit score minimum 720? Harsh. Also with credit score like this why would they be renting?
Not everyone wants to own. I'm sure he gets people with credit scores in the 700's. It's California.
Landlords ask for bank statements? No one ever asked me that. I wouldn't show it because I rent under my budget and don't want a landlord to increase the rent based on what I could afford.
Have you ever run into someone that doesn't have a credit score simply because they don't like to deal with debt? I know that is how I operate because I find it makes everything simpler and you can only buy what you can afford.
I haven't dealt with it yet, but I'd be probably MORE open to someone in that situation than someone else who had terrible credit.
Graham Stephan, I am an immigrant from Russia, and I live in USA debt free and always save money. I have no idea what the credit score is. But guys like you would never rent me anything, besause it's better to safe than sorry. It's not fair!
Really like your channel Stephan, great info as always. What's a good tenant screening service to use? Had 3 terrible past tenants and now I'm ready to make radical changes with my screening process.
Whenever you call employers: open the call with “hi I was calling to see if you are hiring right now.”
For landlords “Hi I was calling to see if you have any available properties to rent.”
You will catch a bogus reference quickly this way when they act confused, aren’t an employer, or aren’t a landlord.
Don't be weary. Wary is good, but weary will wear you out.
I wouldn't want to rent from a landlord who judges people on paper because what kind of neighbors will I have? Also should a landlord really be going on the internet? Tenants already have very little privacy as it is. Oakland just banned landlords from doing criminal background checks, part of a larger trend that frowns on landlords who "screen" too aggressively. Credit score and even "background" are often proxies for illegal discrimination against minorities.
I'm now about to start looking for a tenants in Detroit, this is going to be hard..
Thanks!
Victor Tartakovski ugh. I was looking for property in Detroit and decided to pass
Just be selective. There are great tenants everywhere, but it's worth the wait for a good tenant.
Hi
@@coolcatcarolena4951 There are plenty of gems waiting for the right owner, baby Carolena.
@@GrahamStephan yes!!!
Months of bank records? 720 credit score? Who gives bank records to a future landlord? I certainly wouldn't. People around here with a 720 or better credit score, buy their own property for the most part, unless it's a temp living situation. I mean, I would feel weird asking someone for months worth of bank statements.
I have a problem with my old landlord because he sold the old building and every time I google the address a whole different company pops up . I didn’t get evicted or anything I honestly just can’t find my old landlord
Always a quality video
thanks!!
Great video a add on or add in where and what you can use to look this information up. Back round checks etc. Yes may cost some $ long as its worth it and something or sites you would use.
720 score. I would have to have my rental vacant for half of the time-if I ever find one.lol
Im hoping to rent my current house out and itll be my first... Wish me luck! Thank you for the info Graham!
Also, people who omit cash from financial institutions may be involved in fraudulent activity.
Credit scores are a bad indicator for people between like 25-40. I was a dumbass at 19 and now I’m an attorney. But I sorta get it.