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Renting to someone with payment under the table - Landlord Forum thread 222462







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Renting to someone with payment under the table by Anonymous (Ohio ) on April 27, 2011 @01:10

                              
I have a waitress that wants to rent my place. This is a lower end rental. Do you count tips that are unreported as part of her income? I just want to make sure she has 3X the income versus the rental amount. She is close to the 3X the
rental amount, but claims that not all of her tips are reported.....
The rest of her application info matches up.
[ Reply ] [ Return to forum ]

Re: Renting to someone with payment under the table by Bunny *M*A*G*I*C* on April 27, 2011 @02:13 [ Reply ]
I don't have an answer to your question, but want to draw attention to this fact:

She has informed you that she is a dishonest person.

I don't know if this practice is rife among servers, but I'd be cautious. It's just better to be honest.

Re: Renting to someone with payment under the table by Stephen (WA) on April 27, 2011 @02:17 [ Reply ]
I count only verifiable income. I assume that her boss won't put into writing that he (the boss) under reports employee's income to the IRS and the state.
Re: Renting to someone with payment under the table by Anonymous (Ohio) on April 27, 2011 @04:07 [ Reply ]
I think she is being honest with me, just not honest with the IRS. But you are right, dishonesty is dishonesty.
Re: Renting to someone with payment under the table by Anonymous on April 27, 2011 @04:46 [ Reply ]
Not entirely true, it is not dishonest to lie to a tenant. That is called self preservation. ;)
Re: Renting to someone with payment under the table by Anonymous (CA) on April 27, 2011 @06:00 [ Reply ]
Just mark this as a red flag, and see what else pops up on the background check.

As for honesty, police catch a good number of drug dealers and other felons through speed checks. There's a cognitive dissonance that if you break a major law, you will break a minor law. So, yes, this dishonesty for reporting her income *may* indicate other dishonest behavior.

Re: Renting to someone with payment under the table by Eric (MN) on April 27, 2011 @08:13 [ Reply ]
Servers do not report all of their tips. That is the nature of the business, which is why the IRS requires an 8% of sales allocation of tips.

Some landlords do not report all of their income. Some do not report application fees, deposits not refunded, laundry machine money as income. Some are even as nefarious as to write off items they use in their personal residence against their rental property. Some rent rooms that they do not even claim as income at all.

Look at rental references, credit score, and criminal record. Look at past rent that was paid, if you are the same or lower that is good. If you are significantly higher, thatís not as good. 3x the rent is a good guideline. Ideally 100% verifiable. Sometimes you have to take a chance. If everything else is OK, go for it.

Re: Renting to someone with payment under the table by OK-LL on April 27, 2011 @08:16 [ Reply ]
Don't count any income unless it is collectible (my only exception is SSDisability or Retirement income which is documented). Undocumented means uncollectible.
Re: Renting to someone with payment under the table by Jack Klein on April 27, 2011 @10:10 [ Reply ]
I have to agree with Eric on this...

I wouldn't worry about tips not being reported, but I wouldn't count on all her tips to pay the rent either.

Don't be too concerned for the IRS. They're not too concerned for your best interests. And would the government lie to you? Nahhh!


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