Friday, 19 April 2013

So the applicant discloses they may file for bankruptcy should you care????
As a landlord you should care.  Often times we hear from landlords that the tenants "seemed like good people".  They say the applicants had some credit struggles but showed lots of income and we really wanted to get the property rented so we moved forward......two months into the lease and the tenant stops paying rent AND decides to file bankruptcy.  Now the notion of a "simple" eviction is out the window and the landlord is stuck going to multiple courts in order to gain back possession.  Proper tenant screening is critical to a landlords success.  When reviewing an applicants credit don't just look at their score but instead look at each line of credit; does the applicant have a lot of large accounts with multiple late payments?  Has the applicant ever filed for bankruptcy?  When talking to the applicant on the phone ask about current and past times when they have struggled to make their payments.  It is amazing how many applicants will tell us over the phone of their plans to just "write it all off in a BK".  I know it is tough to be a landlord and have your property vacant but in long run it is much cheaper than ending up in bankruptcy court in order to win an eviction.

No comments:

Post a Comment