Bankrupt Tenat
I have a prospect tenat who on the rental app, disclosed his filing of bankruptcy in both 1993 and 2003. If he is currently under bankruptcy protection, how will this effect me as a landlord with things like late rent and evicition? Are these people "protected" in any way? Will their debts come before rent due to me? Has anybody dealt with this?
blineak82,
Are these people "protected" in any way?
Yes...you might have to go to theFederalBankruptsyCourt to Evict ...
...it will just take a little longer....but, not by much....
YOU have to be Vigilent and not waste a DAY!!!
"Will their debts come before rent due to me? Has anybody dealt with this?"
NO!!! It has happened to me once...
Normally it take me 3 weeks to EVICT...with this DEADBEAT, it took me 6!
....as always,
GoodInvesting, Rocky
Hello blineak82,
What you can do is ask for three months rent up front. You can set this aside the money for say one year, if they have paid on time during that year, you can offer to give back the amount over the normal move-in fees.
blineak82-
Greetings,
I'm in a similar situation with a lady who loves a rental i have but has a Chpt 7 on her record. She also cannot afford a deposit right now and ofcourse she is the most interested. I don't have an answer but you are not alone.
2nd bankruptcy.... I wouldnt waste my time with them... their credibility is non exsistant in my book...
go to the next one.....
First and foremost - THIS IS A BUSIENSS! Make them realize this. If a Rent-A-Center would turn them down, does it make any sense for you to approve them? If a CEO of a company failed at running a company twice and sent it into bankruptcy twice, would you extend them a line of credit that directly affects the viability of your business (your property)? Highly probable you would not do so. Additionally, say out of the kindness of your good hear you allow them into your property, could you go 6-9months without collecting their portion of rent? Would you loose any sleep at night about it? Would it affect your ability to purchase a "great" investment opportunity, should it arise during this time of generosity? Remember some people may every intention in the world to pay you on time or even a portion of what is due to you. They may possess sincere and true regret and embarrassment for paying you, but the fact of the matter some people simply can not pay you and “allot” of people do not know how to manage their finances. Something to think about...
Respectfully,
Phil ~
[ Edited by Pherrejon on Date 10/06/2003 ]
Quote:
On 2003-10-06 02:03, DaveREI wrote:
2nd bankruptcy.... I wouldnt waste my time with them... their credibility is non exsistant in my book...
go to the next one.....
Anyone who declares BK once every 10 years sounds like a scam artist. You realize that if they declare BK when in your property they can draw out the eviction process for 6 months. People that know how to work the system will work you.
Of course this brings up another issue. Why are you even doing the background check if your not following it's advice? Multiple BK's is about the worst thing I could think of for a tenet.