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Old 10-15-2019, 05:30 AM   #141
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Originally Posted by Chuckanut View Post
One guy I know gives a small discount for people who pay the rent about 3 days early. He claims this has eliminated a lot of collection headaches. Of course, he screens his renters carefully before signing the lease.

Legally, that is the same as a late fee. Screening tenants properly is the key to success as a landlord.
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Old 10-15-2019, 05:59 AM   #142
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Originally Posted by Senator View Post
Screening tenants properly is the key to success as a landlord.

Well this is one piece of advice I definitely agree with.

In my experience I set the rent at a place that was NOT maximum but rather got me a decent size pool of applicants so I could pick one with perfect or near perfect credit and a stable well paying job.

I always had less qualified people saying “first come” and I made sure I had enough applications over a few days so I could pick the most qualified person not the first minimally qualified person.

I sincerely believe that the slight lower monthly gross was offset by the greatly reduced vacancy and also the qualitative less headaches.

In an age of increasing tenant rights. The one leverage a landlord has for late or non paying tenants is the damage to their credit if they don’t pay. This doesn’t work if the tenant has marginal credit to begin with.
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Old 10-15-2019, 06:10 AM   #143
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Originally Posted by pb4uski View Post
You're repeating yourself.... one of the first signs of old age.

I’m helping the seniors on this thread who suffer from memory loss lol
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Old 10-15-2019, 06:28 AM   #144
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Originally Posted by calmloki View Post
There's a middle path.
100% true, as long as you treat all your tenants the same way. And I am sure that there is no middle path for letting tenants stay months without paying. Even if they have health issues.

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Originally Posted by BeachOrCity View Post
Well this is one piece of advice I definitely agree with.

In my experience I set the rent at a place that was NOT maximum but rather got me a decent size pool of applicants so I could pick one with perfect or near perfect credit and a stable well paying job.

I always had less qualified people saying “first come” and I made sure I had enough applications over a few days so I could pick the most qualified person not the first minimally qualified person.
This strategy would be illegal in MN. And many other states I would assume. It's first come, first served (or rejected), then on to the next applicant. There is no legal way to 'sort' tenants.

It is illegal to take a screening fee if you do not have a unit available, that means if you accepted a previous applicant, you did not have a unit available.

If you reject a minimally qualified applicant, you must give the screening fee back. Like when a better qualified applicant that applies later. Minimally qualified is still qualified.

All your screening criteria must be in writing so a tenant can self-screen.

If you 'accidently' exclude applicants that are a protected class, you are violating the law.

In Minneapolis, you can barely even screen tenants.

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Under the inclusive screening process, property owners are forbidden from rejecting a potential tenant for having an insufficient credit score, or for having insufficient credit history.

Landlords are also forbidden from turning down potential tenants for any misdemeanor convictions older than three years and for most felony convictions older than seven years.

The inclusive screening process also prevents landlords from rejecting tenants for evictions older than three years.

https://reason.com/2019/09/17/minnea...ast-evictions/
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Old 10-15-2019, 07:41 AM   #145
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Funny reading non-landlords proposing different ways to break the law in this thread lol
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Old 10-15-2019, 07:59 AM   #146
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Originally Posted by Senator View Post
100% true, as long as you treat all your tenants the same way. And I am sure that there is no middle path for letting tenants stay months without paying. Even if they have health issues.



This strategy would be illegal in MN. And many other states I would assume. It's first come, first served (or rejected), then on to the next applicant. There is no legal way to 'sort' tenants.

It is illegal to take a screening fee if you do not have a unit available, that means if you accepted a previous applicant, you did not have a unit available.

If you reject a minimally qualified applicant, you must give the screening fee back. Like when a better qualified applicant that applies later. Minimally qualified is still qualified.

All your screening criteria must be in writing so a tenant can self-screen.

If you 'accidently' exclude applicants that are a protected class, you are violating the law.

In Minneapolis, you can barely even screen tenants.
As I mentioned way above this varies tremendously by state and municipality. In mine you can absolutely take the most qualified applicant as applications take time (to get references etc). To be fair to my potential tenants, I actually run the credit check / criminal / eviction check LAST, and don't take or refund the fee if there is a problem I see before (like insufficient income or inability to document income) or someone more qualified comes along before I have been able to verify employment 2nd past landlord reference etc. What you can't do is reject a qualified applicant while waiting for something "better"

I don't take anyone with a late payment history on their credit at all in the past year, and if older than one year, need a decent and verifiable explanation.

To the other poster who suggested my approach is illegal....its not.
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Old 10-15-2019, 09:17 AM   #147
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If you can't exclude for having a bad credit score, how do you know if your tenant will pay the rent? Are you still allowed to contact previous landlords?

Interestingly (now that it's well in the past) one of the three genuinely PITA tenants we ever had, possessed a credit score of 800. We had to take them, but even at the time I remember our hackles being up. It turned out we should have trusted our hackles...that's not illegal now, is it?

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In Minneapolis, you can barely even screen tenants.
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Old 10-15-2019, 02:12 PM   #148
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It really sticks in my mind, how many years ago, prospective tenants presented the following:

Young fellow, neat and clean showed up by himself, he planned to use the house as a shared accommodation for himself and fellow College students..

Pretty couple, fancy shiny car, well dressed, credit score ok, but showed failure to pay a couple of bills....

Email offers to pay fully year rent in advance..

I rejected all the above, based on credit score, or credit history, lack of references.
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Old 10-15-2019, 04:44 PM   #149
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If you can't exclude for having a bad credit score, how do you know if your tenant will pay the rent? Are you still allowed to contact previous landlords?

Interestingly (now that it's well in the past) one of the three genuinely PITA tenants we ever had, possessed a credit score of 800. We had to take them, but even at the time I remember our hackles being up. It turned out we should have trusted our hackles...that's not illegal now, is it?
The rule is that if the tenant has a 500+ credit score, you have to accept that. MPLS looked at the demographics and saw that the average credit score in N. Mpls was 575. So they settled on a 500 score being good enough.

Maybe you can say if you are more than 30 days late, on a single account in the past 5 years, you get rejected?

I would use credit score anyway. It's the only way to limit bad tenants consistently. No other method works as well.

You can still contact previous LLs, although that is the most unreliable method of tenant screening that there is. If they were evicted over three years ago, that eviction doesn't count.
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Old 10-15-2019, 05:02 PM   #150
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The rule is that if the tenant has a 500+ credit score, you have to accept that. MPLS looked at the demographics and saw that the average credit score in N. Mpls was 575. So they settled on a 500 score being good enough.

Maybe you can say if you are more than 30 days late, on a single account in the past 5 years, you get rejected?

I would use credit score anyway. It's the only way to limit bad tenants consistently. No other method works as well.

You can still contact previous LLs, although that is the most unreliable method of tenant screening that there is. If they were evicted over three years ago, that eviction doesn't count.
Aren't your rentals there? If so, what are you doing about this?
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Old 10-15-2019, 06:32 PM   #151
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Aren't your rentals there? If so, what are you doing about this?
I do not have any rentals in Minneapolis or St Paul.
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Old 10-15-2019, 07:42 PM   #152
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Old 10-16-2019, 08:25 AM   #153
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Originally Posted by BeachOrCity View Post
To be fair to my potential tenants, I actually run the credit check / criminal / eviction check LAST, and don't take or refund the fee if there is a problem I see before (like insufficient income or inability to document income) or someone more qualified comes along before I have been able to verify employment 2nd past landlord reference etc.

I don't take anyone with a late payment history on their credit at all in the past year, and if older than one year, need a decent and verifiable explanation.

I like this order of qualifying tenants.

Will use it the next time I need it.

Thanks
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Old 10-16-2019, 01:01 PM   #154
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Good lord. 575 is the average? Doesn't anybody pay any bills at all?

Sounds like the city fathers' way of saying: "If you want to be a landlord in this environment [god help you], knock yourself out..."

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MPLS looked at the demographics and saw that the average credit score in N. Mpls was 575. So they settled on a 500 score being good enough.

t.
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