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Is this considered a verbal agreement - Landlord Forum thread 321901

Is this considered a verbal agreement by LEE on July 27, 2014 @22:21

                              
Long story short, showed rental property to prospective tenants (happened to be friend of mine). It's my dad's property and he was there, after showing, couple really wanted it and my dad kept saying "so you are taking it..." and they kept saying yes. This was just a showing, no application filled out, credit check, etc and we joined this site to get help on doing better screenings. Now I'm concerned that my dad did a verbal agreement with them and we havent even checked them out yet. And I am extremely uncomfortable with some comments they made about letting their 31 yr old son live in the basement back room with out an egress window, said we should just look the other way.
Would this be a verbal agreement to let them have the place and how can I get out of this? Tell them they still have to fill out appl and pass credit/background check even though they they were told they could have it? I am so upset my dad did not follow the very advice from this forum, the whole reason we signed up for advice! Thanks
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Re: Is this considered a verbal agreement by Lighthope on July 27, 2014 @22:30 [ Reply ]
We'd need to know more of the conversation rather than just a snippet.

Just contact them and ask when they would like to fill out the application so you can proceed with the application process and see if they are qualified. That will torpedo any verbal agreement you may fear might have been made as it clearly establishes that you have not promised them anything yet.

Lighthope

Pearls of Wisdom - The public should get the government they want, and the should get it good and hard.
Re: Is this considered a verbal agreement by NFL_LL (FL) on July 28, 2014 @02:30 [ Reply ]
You made a verbal agreement. However, your verbal agreement is not binding by law. It's not a verbal contract.

Contracts have three elements: offer, acceptance and consideration.

Consideration is something of value which you exchange. In LL/Tenant relationships, the consideration for the LL is the property and the consideration for the Tenant is money.

Your dad made an offer, your friends accepted but nothing has been exchanged yet. No contract. No legal obligation.
Re: Is this considered a verbal agreement by Bill on July 28, 2014 @11:25 [ Reply ]
You have a larger problem than the verbal agreement. First, you are renting to a friend. Eventually, friends and coworkers will stop paying rent and you will have to evict them. Somehow, friends, relatives and coworkers feel they are exempt from on time, in full rent payments. And, they will become angry with you because you expect it.

Second, you will acquire a squatter tenant in the basement where it is not legal for him to live. This will certainly come to haunt you when you evict them all. Will the basement squatter fill out an application and have to qualify too? Does he have a criminal record and bad credit? Regardless, he will be in your basement if you rent to your friend. Probably his girlfriend will come with him. Maybe her kids too.

By all means, explain that everyone must have good credit and pass a criminal background check. The level of acceptable credit is whatever you say it is. Same for the criminal record. Drunks and dope heads do not pay rent very well.

You can back out of everything by saying that you have thought it over and decided it is a bad idea to rent to friends. Stick with it and repeat it as often as necessary for them to get the message they are not moving in. If these applicants have a clean credit and criminal record, they will be able to rent elsewhere.



Re: Is this considered a verbal agreement by anonymous on July 28, 2014 @11:42 [ Reply ]
No agreement. To clarify it to your friend, "My Dad said you're interested in it--so you just have to go through his application and credit checks, references, jobs, etc." If they voice an "interested" reply, tell them to contact your Dad for the paperwork. His application fee is $30 each (or whatever he collects). This gets you and your Dad out of it. The potential applicants can pay and apply through your Dad, if they want. If you think they may surprise your Dad and show up for the key, call them up and tell them what I wrote (or something similar).
Re: Is this considered a verbal agreement by Andrea on July 28, 2014 @14:04 [ Reply ]
You don't say how long you've been renting out this particular property, but since you stated that you joined the LPA to "get help on doing better screenings," it sounds as if you may have already been burned by poor screening in the past.

It sounds like you and your dad need to sit down and decide on your rental criteria for this particular property. This may be a minimum credit score, a particular income level (usually 3 to 4 times the rent), good references, etc. Ideally, it would be a combination of all of the above plus a clean criminal background check. Being on the same page regarding your criteria will save you from these situations in the future.

But regarding the current circumstance, others here have made valid points. I would particularly focus on the illegal squatter situation, since they clearly described their intention of moving the grown son into the basement. Based on your description, it sounds like this space does not meet your local code as a bedroom. If that's true, just tell them you've checked into it and that the liability is too great and makes you uncomfortable. No one can make you or your dad knowingly violate the law.

If you do proceed for some reason, by all means get the adult son on the lease! And don't worry about offending them by requiring credit checks, etc. Presumably, they should expect that to be part of any rental process.

Good luck...

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