Would you give your car to a complete stranger? Of course not. But landlords give keys to their buildings (which are worth much more than any car) to complete strangers. Consider what typically happens when a landlord has an apartment for rent. The prospective tenant calls and makes an inquiry about the apartment. The landlord is so happy to get a call he spills his guts to the tenant, and makes an appointment for the prospect to see the apartment.
The prospect comes over and the landlord shows the apartment, all the while telling the prospect how wonderful the apartment is. At that point, if the prospect says he wants the apartment and has the money, the landlord is so mesmerized by the cash that he will give the prospect the keys on the spot.
What does this landlord know about the prospect? Nothing! This prospect could be New York's number one deadbeat. He could be wanted in a dozen states for murder. Yet the landlord just gave keys to property worth more than $50,000 (and often much more) to him.
Landlords Don't Get Rental Applications From Prospective Tenants
The landlord-tenant relationship is a very odd one. The landlord is at the most powerful BEFORE the tenant is given the keys. Once the tenant has the keys, then the power shifts to the tenant. The tenant then has a right to be on the property (whether or not he pays the rent) and the police will enforce that right.
After the prospect has seen the apartment and has said he wants it, that is the point of the landlord's maximum power in the relationship. The prospect needs the landlord to agree to the tenancy. Therefore, the landlord can get anything he wants out of the tenant at that moment, but not later.
That's when the landlord should give the prospect a rental application. Some owners make up their own (this can be very dangerous unless you know what questions you cannot ask), while others simply buy rental applications from stationery stores.
A rental application has two purposes. The first purpose is to find out who this prospective tenant really is. The second purpose is to get enough information so you can find him later if he leaves town owing you rent. Applications vary, but you must get certain basic information: the full legal name of the tenant, current address, prior address, social security number and date of birth. It's highly advisable to get the tenant's occupation, employer's name, driver's license number, car license plate number and bank.
I once worked for a property owner who insisted that photocopies be made of the prospect's driver's license and social security card. The more information you get, the easier it will be to find the tenant if he skips town.
Oh, by the way, if you don't get the information at this point, you can't get it later. Not that it is illegal to ask a tenant for the information later, but if you ask the tenant and he refuses to give you the information, what are you going to do about it? Evict him? No Housing Court Judge in this city would evict a tenant for failure to provide this information after he has signed a lease.
Landlords Fail to Check the Information on the Application
it may come as a surprise to you, but people lie. Especially those with something to hide. The prospective tenant can tell you anything and you won't know they are lying unless you check it out. There is no excuse for that. Credit checking companies exist and the more sophisticated companies can get you a credit report on the tenant and a tenancy report (they can tell you if the tenant has ever been evicted before) in less than an hour by fax. But be careful. It is illegal to do a credit check on a tenant without his written permission.
I know of one two-family homeowner in Brooklyn who was burned by the "tenant from hell." Now she visits the prospective tenant at their current address. She visits without warning because she wants to see how the tenant lives. Are they clean? Is the apartment damaged? Many owners call the prospect's employer to verify employment. Whenever a prospect gives me a check I routinely write on the application the name of the bank and the account number.
Think of it this way, credit checking is so common today that if you don't do a credit check on the prospect, you are probably accepting a tenant that other landlords rejected.
One word of caution if you call a prospective tenant's current landlord for information. Unfortunately, landlords lie too, even to other landlords. The reality is that if the tenant is a deadbeat, the landlord is very tempted to tell you the tenant is a treasure, simply to get rid of him quickly. Some landlords will even tell you a great tenant is a deadbeat so you won't rent to them, thereby, keeping the good tenant in his apartment for a little while longer. You can call the prior landlord to check on a prospect, but the problem is that time fades all memories. So unless the tenant was the proverbial tenant from hell, you are very likely to get a good reference.
Landlords Don't Check Tenant Income
It makes no sense to rent an apartment to someone who can't afford it. You will collect the deposit and the first month's rent, but if the tenant can't afford the rent, you are only setting yourself up for a very difficult problem a few months down the road.
Some landlord's simply ask for the tenant's weekly (or monthly income) and assume that if the rent is no more than 30 percent (it used to be 25 percent) of the monthly income, then the prospect can afford the apartment. But that's not enough; life is more complicated today.
You must talk to the tenant about the affordability of the apartment. Is the tenant biting off more than they can chew? Does the prospect have other obligations? An ex-wife collecting alimony, a big car loan, an elderly parent that requires support, etc.? How many dependents does the prospect have? Does the spouse work? Is there another source of income? You shouldn't ask these questions directly, as people are too inclined to lie. But a friendly conversation is imperative, and usually far more revealing.
Oh, one more thing. Nothing can destroy the prospect's ability to pay rent faster than drugs (alcohol is a drug too) and gambling. So look for the signs.
Landlords are Suckers
The image of the landlord is that of some cold, unfeeling rich SOB. The truth is that most small landlords are middle class homeowners. Many are just one generation removed from poverty or the old country, struggling to make the American Dream come true for their children.
These are good people. They have a heart. And they are dumb enough to fall for any sad story by a prospective tenant in a hurry. The stories vary. Sometimes they say they need the apartment quickly because of a visiting or a sick relative. Or maybe it's a new job opportunity that will evaporate if they can't get an apartment quickly. Or maybe someone in the family is pregnant and they need a bigger apartment right away.
Let me give you some critical advice: Don't feel sorry for the tenant. This is business, not social work. If the tenant is in a big hurry to rent the apartment and move in, don't rent it to him. He's probably being evicted where he is now and that's why he's in such a hurry. Don't cut corners because the prospect is in a hurry. Remember what the old wise man said: "Act in haste, repent in leisure."
Landlords Trust Brokers
Most real estate brokers are honest professionals, but some are unreformed used car salesmen. You won't know about your broker until it's too late.
The role of the broker is to market the apartment, to bring to the landlord a number of qualified candidates to rent the apartment. But the broker only gets paid if you actually rent to one of his customers. It's common for brokers to "embellish" the qualifications of prospective tenant; unfortunately some brokers go too far. It's still the landlord's job to get the information from the prospect and CHECK HIM OUT! After all, if the landlord picks the wrong tenant, who will bear the costs of that mistake?
ไม่มีความคิดเห็น:
แสดงความคิดเห็น