Re: What is a - Landlord Forum thread 356178

Re: What is a by Garry (Iowa) on February 16, 2018 @20:26

It seems your current tenant is an exceptional one. He has a really good credit score, and is making twice what most landlords use as a minimum amount of income (3x rent), to qualify to rent a place. I'm sure that is why you chose him as a tenant. But to expect another T to be that great, is asking a LOT of either yourself, or another person, to find someone like him again. Be honest with yourself------If your current T just up and moves, and quits paying rent, you're going to have to advertise to find a new T, right? And how many apps are you going to have to sift thru, before you find someone with a 720 credit score, and income of 6x rent?----probably at least 50, over a 2-4 month process.

To answer your question, NO, you would not have to accept someone with no credit history, or a very low credit score. My personal view of a "reasonable" tenant, would be a 650+ credit score, and income of 3 1/2 times rent. That is what most LLs throughout the country use as a guide.

Obviously, you don't want your T to leave, which is why you told him you only want a new T with a great credit score and LOTS of income. And I agree with you for thinking that way. But if your T wants to leave, only because he wants cheaper rent, and you are going to have a hard time finding someone of his quality to replace him, why not offer him a 10% reduction in rent, for him to stay? How much will that hurt your bottom line VS advertising costs, 1-3 months of lost income, utility costs, the time to show the place, to get and run apps, and anything else associated with a vacancy. Only you can answer those questions.

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Re: What is a by Anonymous on February 16, 2018 @22:44	[ Reply ]

Thanks for your detailed reply. My understanding is if the tenant wants to break the lease then he is responsible for all my vacancy costs until I find someone suitable. The tenant said he wants to avoid incurring any costs so is advertising the place himself. Another point is he is paying a below market value rent. So to offer him another 10% reduction just to stay seems unfair .

Re: What is a by Garry (Iowa) on February 17, 2018 @00:56	[ Reply ]

Yes, what you say is true. The T is responsible for all costs associated in getting a new T again. However, judges are usually reluctant in allowing you to recover more than about 2 months of rent from a former T. Judges expect a LL to try harder to find a T , the longer a property is vacant. They expect the LL to reduce their standards somewhat, to find a "qualified" but not an "exceptional" T. Right now, you have a T willing to do the "leg work" to find a new T for you. But if you reject everyone he brings to you, he may just say "screw you", stop paying rent, and just move out. Or he may just decide to "bite the bullet", stay till the end of the lease, give you proper notice that he is moving out, and you will be on your own to find a new T once he moves.