Do You Want to Rent Your Charlotte Rental Home to Anthony?
Who needs a house out in Hackensack
Is that all you get with your money
It seems such a waste of time
If that’s what it’s all about
Mama if that’s movin’ up
Then I’m movin’ out
I’m movin’ out
“Movin’ Out (Anthony’s Song)” by Billy Joel
People move out and relocate for many reasons- a new job, real love (isn’t that sweet!), real love that really isn’t (not so sweet), the need for new scenery, the need to get out of town (Jack Bauer fleeing the US for the UK in Season 9 of 24), Anthony getting out of Mama’s house, etc…
And most of them, like Anthony, need to find a place to live. So property managers get rental applications from out-of-town folk and need to screen them. It seems like it would just be business as usual. But there are more factors to consider.
We’ll start with the basics:
- Credit check: Anthony saves his pennies, so I’m optimistic.
- Criminal check: He seems frustrated, so we’ll have to see on this on.
The income check seems straightforward; people make what they make. But figuring out how much free cash flow is available can be muddled if the prospective tenants have financial baggage where they are coming from. For example, are they homeowners? That’s another house payment they are responsible for, and one that could rival where available funds would go if things got tight (pay for the house they own or pay rent for the one they don’t?). If they make enough to afford two house payments, that’s great. But most people don’t and it adds a layer of risk. Renting out or selling their out-of-town homes is an uncertain thing and can provide short and long term cash requirements. However, Anthony lives with Mama, so he’s good there with no extra house payment.
The employment screening also adds a potential issue. Unless the prospective tenant is in largely the same work position with the same boss at the same company, there is uncertainty on how things will pan out. When a prospective tenant has been in a job for a year or two, it shows they can get along, handle the job, and fit into the corporate culture. New jobs in new cities are a step into the unknown. And that creates a greater amount of risk. Is Anthony transferring to Charlotte with a position with the same grocer or does he hope to latch on with the local Harris Teeter? This adds some uncertainty to his application.
A quick caveat: “Risky” doesn’t necessarily mean bad. When I think of our best all-time tenants (sigh… love you guys!), many of them were relocators with the “issues” described above.
So what to do about Anthony? His credit score will be a big indicator. If he is in the 700-800 range, this tells me he knows how to handle his finances well and can make things work through potential adversity. If it’s in the 500’s, I’m more nervous.
And cash is king. How much in liquid assets does Anthony have? He can send bank/brokerage statements that can prove he has funds to fall back on or tide him over until he’s up and running in Charlotte.
Anthony may want to get out of the Tri-State area, shun Hackensack, and come to Charlotte, but smart landlords will want to check Anthony’s application closely. He may still need to stay in Mama’s house for a little longer to save more money, line up a job in Charlotte, and pay his bills on time to improve his credit score.
Brett Furniss is the head property manager of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords & Home of $100 Flat Fee Property Management. BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales for single-family homes, Uptown condos, and town homes in the Charlotte-Metro Area. Contact Us Today!
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