Tenant Potential Paying with Trust Fund : ezLandlordForms

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Nidia C

started a topic over 7 years ago

I am a new landlord. My fist tenant applicant tells me upfront they don't have credit. But they will be utilizing a trust fund to pay for the rent. They are willing to provide me the trust fund backup. A colleague mentioned that I should still run the background and credit check. I should get a cosigner that lives in state of Virginia in case something happens in the future. This would be a way of recourse in order to take possession of home if it were to ever come down to such scenario. Can anyone give me any advise if this sound sufficient in order to approve applicant?

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Rachel A

said over 7 years ago

I would still run the tenant and possible co-signer. It is definitely a good sign that they were open and honest up front. Shows character!

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Laura H

said over 7 years ago

You can also seek references from the previous landlord. My agents at Cloud Real Estate conducted a thorough background check before renting my property.

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Ross A

said over 7 years ago

It’s a good advice to ask for references from previous landlords. And you definitely need require a co-signer and this person should have a good credit for sure. My personal recommendation is the following: if the potential tenants are renting a place now, ask to see proof of rent payments. You will see if applicants have been paying rent every month, ideally for the past year, and whether they pay on time. You mentioned that you’re a first time landlord, so you may not know all tools of tenant screening. Let me share this article https://rentberry.com/blog/screening-prospective-tenants with you. It describes all steps of comprehensive renters verification. So, I thought it could be helpful for you.