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Thread: tenant application

  1. #1
    sherryb23456 is offline Junior Member
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    Default tenant application

    I run a storage facility in Virginia Beach, VA. I have the tenant fill out a contract and that includes his name, address, contact numbers, etc. It explains the policies and procedures of our facility and he signs it. I was given advice by a lawyer today that I need to have the tenant fill out an application as well. This should include a credit background check. I have several customers that I have taken a judgment out on and that I will probably never collect the money due. If I had run a credit check I might would have avoided some of the problems. What are your policies on this?
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  2. #2
    RandyL's Avatar
    RandyL is offline Senior Member
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    Default Re: tenant application

    Quote Originally Posted by sherryb23456 View Post
    I run a storage facility in Virginia Beach, VA. I have the tenant fill out a contract and that includes his name, address, contact numbers, etc. It explains the policies and procedures of our facility and he signs it. I was given advice by a lawyer today that I need to have the tenant fill out an application as well. This should include a credit background check. I have several customers that I have taken a judgment out on and that I will probably never collect the money due. If I had run a credit check I might would have avoided some of the problems. What are your policies on this?
    We don't do any credit or background checks when renting to new customers.

  3. #3
    RichardandBeverly's Avatar
    RichardandBeverly is offline Senior Member
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    Default Re: tenant application

    I believe to run a credit check you have to be a member of one of the credit bureau's. Most self storage facilities are not. It is expensive. We do not run any kind of checks. All we require is a valid ID and an in town address. You have their stuff, which is a pretty good deposit.
    Richard and Beverly
    Park Inn Storage
    Odessa Texas

  4. #4
    RandyL's Avatar
    RandyL is offline Senior Member
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    Default Re: tenant application

    Quote Originally Posted by RichardandBeverly View Post
    I believe to run a credit check you have to be a member of one of the credit bureau's. Most self storage facilities are not. It is expensive. We do not run any kind of checks. All we require is a valid ID and an in town address. You have their stuff, which is a pretty good deposit.
    Only in town addresses? What about people moving from out of town do you accept hotel room addresses?
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  5. #5
    RichardandBeverly's Avatar
    RichardandBeverly is offline Senior Member
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    Default Re: tenant application

    Yes, we will accept hotel addresses. There is an oil boom going on here. It is not unusual for people to live at a motel for a year, till they can find someplace to live.
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    Richard and Beverly
    Park Inn Storage
    Odessa Texas

  6. #6
    StoRich is offline Junior Member
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    Default Re: tenant application

    If credit checks were run on tenants, I think occupancy rates would drop drastically. Many, if not most, people using self-storage are in difficult situations which may have adversely affected their credit ratings.

  7. #7
    MZC&D is offline Senior Member
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    Default Re: tenant application

    When exactly whould you do this backround or credit check? Let them move in then run the checks and if it was bad kick them out, or get the info and then run the check and then whenever you get the check back tell them they can now move in? Antime I have had a credit check done it always takes at least a couple days usually longer.
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  8. #8
    BobInIndy is offline Senior Member
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    Default Re: tenant application

    Hi,
    We've got some pretty simple rules for storage..."You pay, you stay!"
    No credit checks, since they wouldn't provide any useful information that would help us rent to the tenant.
    When a tenant doesn't pay, we use the lien enforcement process of selling their stuff.
    We never go for a judgment, since that costs an additional $80.
    If they wouldn't pay when you had their stuff, why would they pay when you have an unsecured judgment.
    Additionally, as most of us know, getting a good address on a tenant that's going to go to auction can be difficult. In many courts, if you can't get good service, then you can't get a judgment.
    Finally, as an investor I have access to several 'pay for' services that will tell me how to find the delinquents...but for what purpose?
    Most, if not all, know they are delinquent and don't have intentions of paying...hence the auction.
    On only a very few occasions have we searched out a delinquent and had them come in and pay based on that effort.
    So we simplify the process and use the 'Pay you stay', policy.
    I used an application process with my rental homes, but that's very different than the dynamic process used in storage. I think I would meet with resistence if we asked for ss numbers, bank numbers, employer numbers, previous landlord, references, and again for what purpose?
    Last edited by BobInIndy; 30th January 2013 at 11:41 AM.

 

 
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