Avoid the NIGHTMARE tenant and eviction: My Tenant screening process

[@tommyfo4678]

Also, never rent to friends, family, or coworkers. I learned that the hard way.

[@banahlee]

Tommy Fo Why not? Will they be late on rent and stuff because they think they're "cool" with you?

[@tommyfo4678]

B Lee Yes that's exactly correct. They think cause you're close friends or related to you and can pay whenever is convenient for them, or that late fees or pet deposits don't apply to them. And if you have multiple properties they assume you're swimming in money and should be there as charity case for them.

[@banahlee]

Tommy Fo Kinda shows how people are, if they think they can take advantage of you, they will.

[@tommyfo4678]

B Lee Very true, it's just easier right off the bat to tell them "I don't rent to people I know." I don't worry about it now since all my rentals are out of state and you have to go through property managers, I never meet my tenants, and just let the management company handel everything else

[@banahlee]

Tommy Fo True that, thanks for your insight

[@stevepetttyjohn7900]

I've been renting properties for nearly 30 years and this is almost exactly my process as well. Only times I ever made a really bad decision on a tenant was early on when I didn't listen to that little voice in my head saying; "Don't rent to them" because I was anxious to get the place rented. My mantra is: A BAD tenant is far worse that NO tenant, so don't be in a rush.

[@Zdj2014]

Steve Petttyjohn how many properties you have?

[@Pilottoproperties]

Thanks I needed this right now!

[@agravery223]

So true, my friend left her brownstone empty during this pandemic (she moved her family to queens and was planning to rent out the Brooklyn house)... it was easier for it to remain empty and do overtime than grab the tenant who lied on their app that was trying to move in quickly. Haste makes waste as my dad always says!

[@Vera-dg3hf]

Great advice! I also rushed and found myself in a mess with a tenant from HELL

[@raygordonteacheschess5501]

I know one building that had fifty empty apartments until they started renting to anyone figuring out they made more money letting a few bad ones slip through than having a quarter of the building empty. Most tenants who pay every month and don't harm a place will find an appreciative landlord even if nine out of ten won't rent to them due to their credit or whatever. Capitalism works even in housing.

[@brianmarshall3931]

IF, you are doing your own interviews... here is a simple thing you can add in. Take a look at their vehicle. (You should have the plate number on the application anyway) If they claim they are not smokers for example - and there is a pack on the dash or seat or an overflowing ashtray - well, you know there's a wee bit of deception goin' on ;) If the vehicle obviously has not been taken care of, hasn't been washed in a year or two, bald or mismatched tires, broken/missing windows, 4 inches of trash on the floor, out of state plates, 2 year old registration tags, a dog that somehow didn't get mentioned or other interesting details that might contribute to your decision... Trust is pretty damn important, any little indication that it might be a bit wobbly - is enough to make you step back. NEVER be desperate to fill a place. You will spend months of misery trying to undo what you might have stepped into - and that doesn't count the actual cash you can lose in the process.

[@GrahamStephan]

This is really, really good advice. Very good points!

[@MeetKevin]

I second this > great idea Brian!

[@brianmarshall3931]

Thanks Graham. Over the years I've found that people can be very deceptive - on their best behavior and dressed for the model citizen part they are playing - but they generally forget little details in and on their vehicle. (Because they don't expect you to wander out to check the license plate as they are leaving ;) Lots of little clues there if you are observant. (Yeah, all bets are are off if they just rented a nice clean luxury car to roll up in, but I've only ever seen that happen once and the plate frame gave it away) How they take care of the exterior/interior of their vehicle is generally a pretty good indication of how they will take care of the outside & inside of your property... Good on you that you finally have a fairly flawless group of renters now. Don't let up on your requirements! They are working!

[@husqrok]

Become a full-time leech or a satanist as in you ain't willing to help a homeless people. There's already lots of curbs for those people, and you POS broke ass wanna be succesfull people are complaining about people WHO ARE PAYING Y-O-U-R FREAKING LOAN. Being human is being humane, you seem to have missed a lot, have you ever lived for even a year of continuous life, meeting people, meeting new people, helping people who can help you, idk why I even try to make this understandable. You talk way too much Mr uploader, your expectations will not be met in your current state of being no matter how much money you had, eat something, you're pale as shit. If I would spend this much time listening to nonsense from people I wouldn't want to meet id have no life either. Oh, get paid for over 10minute video.. happy new year

[@jessicaburroughs5763]

I can agree with this.. but my car is definitely a black hole compared to how I keep my place XD No smokes tho, and good winter tires :)

[@justjacqueline2004]

Here in London,my worst tenants were,over a thirty year period,1.Police,2.Lawyers/solicitors,3.Doctors. They all assumed I would not evict them,I was never sure who was more surprised me or them,but their behaviour were all reprehensible.

[@GrahamStephan]

That's awful!

[@thebabscast5154]

Hahaha

[@iforgettherestwhitman1483]

@@GrahamStephan And grimly funny.

[@vivianhiggins5685]

My worst tenant is lawyers !!! I totally agreed with you !! Don’t rent to a lawyer

[@asw654]

The worst I've had in California were small business owners. Inconsistent income and they have a hardass / mercenary attitude towards money. I suspect they develop that from constantly lowballing their own employees. Don't think they won't do that to you as a landlord.

[@Svartr.HrafnSvartr]

I was a leasing agent/resident manager for a large Canadian residential rental company and I found even when all the boxes are ticked off, it's no guarantee that these 'perfect on paper' tenants won't become a nightmare at some point during their lease. Crazy enough, I've had professionals such as police officers and lawyers be some of the worst experiences in my career. On the flip-side, I've had welfare recipients be absolutely great and problem free. In the renting hierarchy I was working in, I didn't have final say but I could vouch for those who didn't present as a perfect renter on paper. My intuition worked well 96% of the time (keeping in mind that I was renting for high volume multi-complexes). The worst are squatters whom don't even have a rental agreement with the property owner - somehow the law protects these people and it takes forever to get rid of them. They get months to take appliances and sell them and trash the place beyond recognition and be all smug because they can get away with it before the courts decides to deal with them (at least this is true in Alberta, Canada). Anyways, personally I wouldn't qualify for your rentals based on your criteria but it's your business how you want to screen your tenants. I would just like to say, however, that not all that appears perfect will stay that way. And sometimes, it's worth the risk to rent to those who may have credit problems or who are in a lower income bracket because there ARE people who are grateful to have a good home and make paying rent and being a good neighbour a high priority in their lives.

[@GrahamStephan]

Well said!

[@raygordonteacheschess5501]

Aside from the legal implications of being too "picky," landlords who rent to the wrong people because they look good on paper get what they deserve. I laugh whenever I see a story of a tenant like that. Better things to look for: can they handle the fire, gas, and water? Do they have a lot of visitors? As for tenants with previous evictions, a blanket policy like that could be construed as blacklisting. Landlords have gotten arrogant because most tenants don't know their legal rights. Run into one who does and your profits can easily be wiped out by legal bills.

[@gu3sswh075]

Ray Gordon Teaches Chess asking a tenant if they've ever been evicted is illegal? Where the hell do you live, where you can't ask that…

[@ChinkapinOak]

I once had a previous landlord give the tenants from hell a sterling reference, no doubt he was thrilled to be rid of them.

[@karenkramer3760]

lol

[@raygordonteacheschess5501]

Look up Marla Hanson if you want to see the problem with landlord references. Also could give rise to a retaliation lawsuit if the ex-landlord is malicious.

[@mikehicksRE]

This is why i let my property management service deal with this, they basically do a govt level background check and send me most of the items you listed for them.

[@GrahamStephan]

Agreed. This could really, really help - especially by taking the emotion out of the equation.

[@James-vj5hz]

GrahamStephan Great option especially when you're only going with 12+ month leases. The local property management companies in my area only take 10% off your rental income. However, they do charge $500 for the initial dirty work. If you only have 1 rental property that 10% can hurt though.

[@NathanSynth]

what would be a good recommendation for a property management service?

[@animeshdas9842]

Property management takes 10% off the top. That's a HUGE cut for most properties.

[@tonyj8947]

@@animeshdas9842 It can be huge cut but 8%-10% taken off each months rent for PM is normal. Typically services cheaper than that will provide less than adequate PM.

[@Carls_World]

One of my mentors gave me a tip that I follow till this day. While they are filling out the application, excuse yourself and go to look at their car and see try to see the condition. If it's a huge mess and it's really bad, that's most likely how they are going to treat your property. I learned something from you today. I never knew you could ask for bank statements. I'll be doing that moving forward.

[@duanejackson6718]

Carl B you can ask them for anything you want. but the prospective tenant can also refuse and walk away.

[@DIVISIONINCISION]

@@duanejackson6718 Sure they can. How bad do they want the rental?

[@ezyryder11]

Lol I drive a beater and have perfect credit and own my home

[@RJ-sr5dv]

I second that,!!! If the prospective tenant currently resides within 30 miles, once I’ve got past the credit score , personal car inspection, present landlord phone interview, I’ll take a drive to where they currently reside, “I was in the neighborhood and wanted to review your application” If where they live is dirty DON’t Rent to Them.

[@ItsmeBish584]

​@@RJ-sr5dvno dont do that. Dont stalk prospective tenants. That's weird and invasive.

[@ZeniaRose]

3x the rent amount as income?! Yikes. I am so glad that isn't a requirement where I live or I would never have got an apartment! I don't make much money, but in the 17 years I've been renting, I've never been late or missed a rent payment.

[@miriambucholtz9315]

I've noticed the tendency recently for apartments to specify that the monthly income be 3x the rent. It makes sense. When you have to use government subsidies to be able to afford a decent place, your rent is calculated so that it doesn't exceed 30% of your income. I also don't make much money and have never missed a payment.

[@helena3631]

This is most likely in the larger cities like NYC.. 40x rent,credit score 680 , background check and no evictions .

[@jessycoolnessable]

Yeah where I live right now in Houston it has that requirement in a lot of places and hadn't really had to deal with all that in San Antonio.

[@stephaniesoutherlandrealto3442]

They are usually basing it on gross income before anything comes out of your check.

[@figuringitout4732]

They want to make sure you can afford the place, and you're not supposed to spend more than a third of your income on rent

[@Andraek]

LYING IS Something that should cause an automatic turn down I have a simple room for myself never lie you'll 99% of the time get caught. ALso lying shows you cant be trusted.

[@SuperEH2393]

Graham you are by far the most humble, intelligent, and helpful real estate youtuber out there! Ive learned so much and gained so much knowledge from you! Im in the process of saving up and hopefully by the end of 2018 buy my first house im so excited and look forward to learning more! Thanks alot man! Happy new year! I will be busy within the next few days so i wont be able to say it then! Im subscribed too! Keep up the great work!

[@GrahamStephan]

Thanks so much, Hope, for the kind words! Really means a lot to hear! Keep me posted as you get closer to buy, that's super exciting! Happy almost new year!

[@RickyNuku]

I’m not even into real estate but this guy is such a good speaker with great cadence and articulation that I found myself watching a whole bunch of his other videos too. Also great advice, ethics and very relatable

[@GrahamStephan]

Thanks so much!!

[@Shannon_Vlogs]

I can definitely appreciate everything you’ve said, one thing I would say to consider if they’re trying to move in right away is that there may be a domestic abuse issue. This is not an indication that they’ll be a poor tenant, but just that they’re in a very dangerous or precarious living situation. I’m sure that this is something you already consider, but I think it’s worth mentioning for sure.

[@ThePecanTan]

Good point. In my experience, potential tenants who want to move in right away either have been or soon will be evicted.

[@Shannon_Vlogs]

@@ThePecanTan Yes, I imagine this is the more common scenario, but you never know what people are going through. That said, evictions are public record so maybe- as long as it has been filed- someone could check to see if that’s what’s going on.

[@alexupton6732]

Watched this entire thing... dont even own property lol

[@steviepii]

I salute you sir. Good job preparing for the future.

[@raulbitca5342]

Same but at 14.

[@cursed7094]

@@raulbitca5342 same ")

[@Gregarious3]

It might be nice to be judgement proof. I have properties because I like challenge.

[@sweav88]

According to Graham's analytics, you are in the 42% of viewers that watches his videos all the way through and is subscribed.

[@pinkcharms]

As a foreigner it’s always difficult to find a place to rent, especially those managed by property managers. They don’t seem to understand or accept the fact that there are people who are legally residing in the United States that doesn’t have social security numbers. My husband has ssn and excellent credit score (740+). But simply because I don’t have ssn, we sometimes get rejected instantly they need everyone in the household to have ssn. Fact is, we have never missed a rent payment and always leave the property cleaner than we moved in.

[@dcg590]

How are you legal without a ss number? You lie

[@thelatentsexualfreak]

😂😂

[@yangliu4445]

@@dcg590 Student and non working could be scenarios that’s legal and not having social security number

[@GardeningZ]

The moment you are allowed to work, you can apply for a SSN.

[@LuckyAces444]

Could you do a video comparison between hiring a property management company and doing it yourself?

[@oiseo4498]

Apple Banana yes this!!! Please.

[@Iam18]

I just found out about this. I'd like to know more about property management companies. Off to Google i go!!

[@Viktor_ginger_Tabby]

while I do not really plan on becoming a landlord, I can appreciate everything you have said, this is very informative, and educational.

[@GrahamStephan]

🙌🏼

[@dangerouspie0319]

This guy exploits people by claiming land he doesn't need.

[@biggiechungus1294]

@@dangerouspie0319 he provides housing for those who can’t buy a house or do not wish to at the moment.

[@dangerouspie0319]

@@biggiechungus1294 No, he bought housing that was provided by construction workers and plumbers and roofers. Professional landlords hold housing from people unless they can pay the cost of the housing + more. What if a house was built by the companies that do so, and the house could only be sold to people who would actually live in it? It could even be reasonable to own a few houses across the country, but buying a house just to charge someone more to live in it is super immoral.

[@biggiechungus1294]

@@dangerouspie0319 not everyone can afford to buy a house nor are they interested in it all the time. Landlords are necessary

[@SerinaJK]

I definitely got a lot out of listening to you. The part where you mentioned Facebook was mind blowing. The mental health crisis is something else we're looking at right now and this needs to be minded as a landowner who lives on the property. The opioid epidemic is exacerbated now, but things like withholding cash from bank accounts and maxed out credit potentially hint toward that. Meeting in person is so important before accepting the deposit and first month before signing, because not everyone is an addict. However, the shifty behavior of omitting cash from institutions are telling about a person who is financially irresponsible.

[@MechE11B]

I watched this with the goal of finding out how I can be the best possible tenant candidate for landlords.

[@crand20033]

Pay rent on time, follow the rules and be nice.

[@KellanJames]

All great advice - you will have a very very high chance of getting a fantastic tenant if you follow all of this. Also - only 1 hour per month, that's so awesome! I look forward to getting to that stage, I have plenty of deferred maintenance and headaches to deal with at the early stages of owning a new property.

[@GrahamStephan]

Thanks Kellan! In the beginning it was wayyyy more than 1 hour per month...oh man, the phone calls of "my xyz doesn't work! This doesn't turn on! How does this work?" got old pretty quick. Thankfully long term tenants + fixing all the bugs = happy graham!

[@KellanJames]

YES! I look forward to working out all of the kinks in the properties, and I see major value in long term tenants, allowing you to spend that time making money elsewhere.

[@newera3443]

Not gonna lie, I'm low 600's on my credit score but I've never been late on my payments, never called in late or disturbed the peace. I've been with the same place for 3 years and never raised any major issues (unless appliance issue breaks). Point being I'm not a bad guy just bad luck with life.

[@dillionmcwhite5023]

Bad luck can affect a score FAST! Doesn't mean the person is bad at all!

[@kuhlde1337]

@@dillionmcwhite5023 I'm a bit green when it comes to this stuff. Would you mind giving an example of what you mean, and what things that affect your score negatively?

[@Anonyme67]

Stop associating yourself with negativity. Instead say I am going to fixe my credit

[@willn8664]

Sounds like an excuse. Instead of blaming bad luck, make the effort to fix your credit.

[@Aalmost]

Has absolutely nothing to do with luck lol

[@philblane5752]

My experience with property management firms is that they will put just about anyone in the property so that they can begin collecting the 10%. If the deal goes bad, they just walk away and let you deal with it. Its a hell of a deal for the PM company; money for nothing.

[@eosfilm5488]

It must feel so good getting to the point where you can confidently say that about all of your tenants knowing they have the power to see what you're saying about them online. Congrats on getting to where you are now!

[@YTBraxxGaming]

Gray-ham, you're one of my favorite new channels

[@GrahamStephan]

THANKS SO MUCH!

[@raygordonteacheschess5501]

And one of my lawyer's favorites....

[@yashrajbose]

Great advice! Just wanted to say that just as landlords have a bad experience with some tenants, tenants too have bad experiences with landlords. The latter happens more often than the former. I personally had two such experiences.

[@andrewkim2013]

That's good information to know that landlords can be dicks. But, could you clarify if you've been a landlord before? Because when I read ur comment, I get the vibe that ur making assumptions and haven't been a landlord

[@yashrajbose]

@@andrewkim2013 no I have not been a landlord. I have been a tenant in the past.

[@dcg590]

Nope

[@MSami-fe6uj]

in General tenants are awful, they are like a virus who comes in, destroys the property then ask for their deposit back when they leave landlords might be little greedy sometimes but they earned the property and it's their right to protect it

[@crand20033]

Because you didn't pay them on time or your behavior was intolerable.

[@vincentslusser9205]

This relieves a ton of anxiety about my biggest fear on purchasing a duplex. Thank you :)

[@Wolfsheim23]

On AirBnB I make any new airbnb people with now reviews send me picture of their Drivers License or Passport and I always make sure they have ID verification on airbnb too. Also no Autobook! On normal leases though a credit report is a MUST HAVE! Too many people ignore this step and pay dearly for it. Make the effort and you won't have worries later. Don't be afraid to be very selective.

[@DIVISIONINCISION]

I doubt I would ever do it, but I'd imagine you'd have to do a thorough background check and interview them. Also, I can tell you right now that most people aren't going to hand over their bank statements to you. That's personal info. They would just move on to another property.

[@FS02012]

I would report him and have this guy charged! He's asking for too much! But as a landlord he isn't providing his background check! As a tenant i want to know all about the landlord!

[@ThePecanTan]

Agreed. I'm a landlord and I've never asked a potential tenant for their bank statements. I shake my head whenever I see this as required documentation for other landlords. It's ridiculously invasive.

[@chessie459]

I watched this canadian show about renovating, one tip was he also checks the potential tenant's car. his understanding was, how the car's interior look like would also reflect how the property will be taken care of. If the car is dirty and unorganized inside, it might be a red flag.

[@myshots101]

Not really. The guy could be a mechanic.

[@notashapace1473]

My landlord didn't even do a credit check. He said he finds that credit scores mean very little. Rental history and work history are what matter. He spent 5 days looking threw application's and he called my husband's work, my past 2 landlords and all that. First time ive ever had someone not check credit scores

[@Dustin1983]

I 100% agree my husband's credit score suxks from medical bills n 18yr old mistakes.. that required a bankruptcy but he makes 130k same job for 7yrs. Never been evicted But we can't get his score past 660

[@219garry]

KISS Graham. Credit score, Income. Credit check, criminal background check. I always laugh when my realtor friend that rents homes wants to see how much money they have in the bank. I'm like WTF. Just because they have money doesn't mean they will pay you! Credibility and income is about all that matters!

[@hughjazz4936]

Here's a tip from my uncle who's a landlord. Don't ring up their last landlord but the one *before* that. The last guy is probably happy to get rid of them and will tell you all sorts of good stuff so they'd piss off. The one before that doesn't care and is usually more honest. At least so my uncle says. What do you think about that?

[@jamiewilson4479]

You should do one about how to avoid nighttime landlords.

[@hitman4DAcowboyz]

That moment when you realize that your mentor hate you because your Credit score is 595 🤦‍♂️🤦‍♂️ 😭😭

[@ezLandlordForms1]

Proper screening of your Tenants is so important. Too many landlords go with your gut and they chose a bad tenant. I like the back account statement idea too. Great video!

[@tompenny9352]

Something I am unclear about. If an applicant passes all criteria credit check, criminal, rental history but you just don't want to rent to them...As far as I can tell there's nothing wrong with this. Correct?

[@sachamo100]

Thanks, Graham. This encourages me to go for a rental unit. You scared me with the story about your first (farmer) tenant.

[@GrahamStephan]

Nah that only happened once in my entire career so far that was my fault for not screening them properly. Otherwise everyone has been great.

[@l2ealChuckNorris]

Nice video Graham! I hate hearing about tenants that take advantage of owners, especially those that are sympathetic to a situation they said they went through. Just because they can afford to own doesn't mean they don't need the rent

[@GrahamStephan]

Thanks man! Oh totally, some tenants out there are just plain CRAZY.

[@r5yamaha]

The current landlord is not a good reference...This landlord will give a great reference just to get the tenant out. Speak to the previous landlord and ask if they would rent to the tenant again?

[@rebekahc.1402]

The place I'm moving to soon requires a lot of that same type of stuff too. Background check, credit check, reference check, pay stubs, have to make at least 2.5x rent, deposit (holding fee) had to be paid within 24 hours of filling out the application in certified funds, first month rent is due upon move in with certified funds. More restrictions than the last place I rented but it's nice, quiet, and walking distance to work, stores, bus, etc. Also makes me feel like my neighbors will likely be nice and responsible individuals.

[@trvlguyz7706]

Can you post a copy of a rental agreement. there are so many and it gets really confusing and if all was added, the rental/lease agreement would be 10 pages +. Thanks Stephan, and have SMASHED the like and subscribe buttons and look forward to watching everything.

[@Ruthlessbone]

That polo sweater is on point!

[@GrahamStephan]

Thank you 🙌🏼

[@InvestorCenter]

Watching this again because I just bought my first investment property this week

[@hobblesgames9376]

One thing my parents added, look at the current house they are renting if available. if the yard is clean and maintained, it reflects on them usually.

[@GrahamStephan]

Very true

[@JohnDoe-pf6qp]

Worrying about credit scores is pointless, some people just don't use credit. I look for negatives on a credit report like evictions, collection accounts, and so forth. Disqualifying a potential tenant because they don't use credit is silly. Also, if you're renting in lower income areas holding out of a 720 FICO score is going to pretty much ensure you won't rent your property. I think asking people to give you bank statements is overly invasive of someone's privacy and I can promise you you've had good prospects walk away without even filling out an application over it. Verifying employment, while not a bad idea, is increasingly difficult. Most employers simply don't want to be sued and therefore and reluctant to provide information. Especially with larger employers if you call an employment verification number it can be quite a process to get any information. Also for liability reasons for yourself when talking with other landlords I'd recommend keeping any information you give in the realm of what is factual and objectively verifiable. Opinions can get you sued.

[@EmDeePhotography]

Lenders ask for the same thing. Bank statements, employment verification, credit scores. It's good he is being protective as a landlord. So many schemers out there.

[@JohnDoe-pf6qp]

A property owner isn't a lender, nor are they a "landlord" as we don't have a system of feudalism in the US. Check someone's credit for negatives, look at their pay stubs, but you don't need to see their bank statements. It's not really any of your business what a tenant spends their money on. Besides, at the end of the day it's really easy to create phony bank statements and pay stubs.

[@EmDeePhotography]

As a realtor myself, I come across many, many people who do lie on their applications. I see nothing wrong with going the extra mile as a landlord to ensure you are getting the right tenant. In my opinion, a landlord should be detail orientated just like a lender. It's their house they are letting you live in, so you should have no problem putting up the extra docs. EDITED TO NOTE: I have seen 4 people get caught creating fake paystubs. There is nothing wrong with going over and beyond.

[@JohnDoe-pf6qp]

I've been renting properties for many years now. A lot of people lie on applications because unreasonable owners tend to force them to do so. As with many things it cuts both ways. Starting off a tenant owner relationship with unreasonable demands is going to cost tenants because from a tenant's point of view this kind of nonsense screams nightmare owner that's going to be stopping by the property twice a week. The tenant is also interviewing you because an owner without tenants isn't in any better of a place than a tenant without a property. Graham didn't need to see bank statements to see his problem tenant before they moved in, the credit report showed wild financial and personal instability. The reality of the situation is, especially for first time owners with first rental properties, unrealistic expectations for what your tenant is going to look like can have devastating financial consequences. So the short of it is waiting for someone with a huge income and 800 FICO score to rent your two bedroom in an iffy neighborhood is going to be a long wait.

[@StormAlterWorlds]

I could not agree more. The notion that a *good* tenant should be comfortable with a potential landlord looking over their bank statement is nuts to me. Just nuts.

[@thomasmorrison3279]

I have called prior landlords at apartment complexes and they have refused to comment on previous renters for fear of libel or slander lawsuits. They would only acknowledge that the tenant had lived there before

[@GrahamStephan]

Jeez 😬

[@karenkramer3760]

If that's all the landlord said, I would have assumed the tenant would have been bad. Because if the landlord said the tenant was good, that wouldn't have been slander.

[@paulpi3118]

All tendant are start out great but over all a pain in the ass. I'm dealing with a dead beat renter that stopped paying after I terminated his month to month no lease agreement. Once my girlfriend and son moved in he constantly complain of the noise. In return I terminated his monthly agreement and gave him 90 to move out and decided he's not going to pay me. Waiting for court date to have him Evicted. Always run a background check and talk to their previous landlord.

[@kimberlylewison3715]

the issue for tenants is if they have a good credit then they can buy a home, they don't need to rent. your credit can tank from medical bills, or a divorce.

[@paultauriainen]

I was a bit nervous when I sent in my rental application for my current place because I am on government welfare. They actually let me rent the place no questions asked!

[@dcg590]

Thank the tax payers

[@SonyaWongJamisonKeener]

Great job explaining the screening process. Thanks for sharing with everyone! Good vibes to you!

[@GrahamStephan]

Thanks!

[@ryanmccarty880]

This was very helpful for me. Just got an offer accepted on my first rental property and your videos are a great learning tool!

[@djangomarine6658]

Hey, how has your experience been so far? Any words of wisdom that you could share re tenant selection?

[@BC234M3]

3× minimum requirement crazy especially for a single person, but 1000$ isn't bad for rent for an apartment, but once you reach that 1400 a month, that gets crazy with the 3× rent

[@slsinflorida]

I would not be giving a potential landlord my bank statements. I've never been asked in my 15 years of renting, and I would walk away

[@DIVISIONINCISION]

This guys strikes me as someone who rents properties in nice areas, houses most likely. He's not starving for tenants.

[@ayalanumber3]

I work at a bank and get customers daily asking for multiple months of previous statements for their rental applications.

[@YPEFFLE]

That was my husband when he was renting about 10 years back. He is a private guy and was like no way I'm telling some stranger how much money I have (well over 6 figures in the bank as he was saving for a home) To be fair he had a perfect a great credit score, a high paying job he had for years, good reference from the previous landlord. He got the place anyway

[@MOBU76]

I would never rent tenants with the attitude. I had a girl ( a lawyer !!!) telling me that she is not comfortable showing me her bank statement. I told her that in that case I am not comfortable renting to her and I hang up the phone on her. NEXT

[@taylorj6177]

Well, welcome to 2021. Post covid. Good luck getting an apartment now w out basicallybperfect freaking everything

[@CaustosSeraphim]

Now I'm really curious about the good signs from a tenant who may be less than perfect by standard means. I.e. the roommates with cosigners or who don't quite meet the 3x income but seem perfect everywhere else or those with poor credit but the right attitude. Is it good if they come prepared with backup such as letters of recommendation or the willingness to pay for an extra month or would this be suspicious? Or does it all simply come down to your gut? Mostly thinking of younger renters or the millennial crowd, what are the risks of taking on renters who have made their financial mistakes and are now working their way out of them and how are they mitigated? So much to learn!

[@jessycoolnessable]

As someone who is on the renting side I find it odd someone has multiple roommates that CANT meet the 3x the rent payment. If they all combine their income and can't make that much, then as a responsible adult they should look for a cheaper place. The places I have rented from do credit checks but if you have low credit then they might still give you a chance by making you pay a higher deposit (again with the verification that you make 3x the rent)

[@searchbug]

Background check is really important. Aside from the things you mentioned, the risk of renting your property to someone who does illegal activities is high. The payment is not the problem here as they really have cash to pay for rent, but the major problem you really want to avoid is the consequence of illegal activities done in your property. Civil forfeiture is really scary. That's why you should always check your potential tenants and spot the red flags.

[@09Germ]

Love the content bro because most of the other real estate channels talks about the Money the good side but never the bad side of real estate love how you keep it real really helps a lot. 👍

[@GrahamStephan]

Thanks so much!!

[@martyvonx]

The advice here seems wise but I'd say as a renter that I'd find a landlord wanting bank statements to be overly intrusive. I've never been asked for that and I would likely move on to other options if a landlord required it.

[@francogarcia599]

rj jr didnt think about that lol

[@karenkramer3760]

I do that when the tenant is self employed. If they produce pay stubs, no need to do it

[@TheColombiano89]

Very common

[@DREASAK]

@@karenkramer3760 either pay stubs or bank statements makes sense. I'm self employed with no pay checks coming in but as soon as they see my statement we're good

[@j40389]

My current apartment asked me to do that. I didn't give them the entire statement, though, just the list of deposits and that worked fine.

[@gamingbros3455]

out of 24 channels i subbed to, grahams is the only one with the notification bell on! P.S can you make a video about business taxes, income tax, self employment tax, deductibles, etc?

[@GrahamStephan]

THANKS SO MUCH! I'm always a little iffy going into taxes since it's such a diverse topic, each person's situation is different and a lot is open to interpretation. Also don't want to be on the line as giving tax advice. I have one coming out next week that's kinda in that realm though.

[@gamingbros3455]

i was wondering if you could just explain how it works instead of giving advice. Like right now i am confused on how the quarterly payments work and a couple other stuff. It would be great if you could explain the fundamentals!

[@l2ealChuckNorris]

I don't get notifications yet? haha

[@jusxmia]

I don't have a great credit score, but am never late on my rent, and I am careful with property I rent. I do have trouble renting. As a single parent, there are times you have to choose between a bill and food on the table, or lights on - oh, well, that's how it goes. Working on my credit now.

[@olliecooper4232]

As well the credit score can drop if person has moved to new address. For example in the UK, where I am currently the tenancy agreement when first signed, can either be for six months or a year. The landlord/owner then decides after this time, if they want to sell the property, move back in themselves or continue receiving the rent. The six months/one year two different options is known the minimum term the tenant has to stay in the property. Effectively a landlord could be planning to sell, get a tenant in for six months then give the tenant notice, and this drops the tenant credit score, due to time at their current address, by no fault of the tenant.

[@skapunkoialternativeliving6522]

This is why I don't rent anymore this is why I rent a room and I'm glad I live in my van I don't have to do applications or pay her rent anymore or security those days are over for me I love living in my van it's the way to go simple living no high-rent no electric bill no nothing and no one in my business either

[@Akrios1337]

that awkward moment where id be a bad tenant for Graham

[@GrahamStephan]

Hahaha I'd make some exceptions 😜

[@Akrios1337]

This is why I watch your videos Bro I wanna better myself

[@marc-andreservant201]

The most important reason cash income is a no-no is that the applicant is likely judgement proof. Which is bad news if they decide to thrash the place.

[@juliealexandra7582]

Credit score/report is definitely a big one, but I appreciate the fact that you do make exceptions. When my boyfriend and I were house hunting last summer we were getting turned down left and right cuz he had horrible credit (under 500 at the time) due to items in collections that were under dispute. However my credit was/is extremely good (mid-800's), and we both made very good money with our jobs. We finally found a couple who had just purchased a rental property, and the day it went up for rent, we immediately offered $250 over their asking price (which was still less than our maximum budget). They were also hesitant cuz of his credit, but agreed to give us a chance. Since then we have paid rent a day early every single month, while my boyfriend has managed to raise his score by over 70 points, and is still working on it now. I understand landlords' concerns over issues like bad credit, but I just wish they would be a little more open minded like our landlords were. They're now profiting an extra $250/month, and have had zero issues with us. The amount of snooty rejections we got were just beyond frustrating, cuz those people would have all gotten the same result with us as well.

[@GrahamStephan]

🙌🏼

[@stanleybanker-realestategr7530]

The real trick to making sure you're tenant is good is to know them on a human level. What one would call a 'bad tenant' usually has their reasons. The way to get a good tenant is to make sure you're mutually comfortable, respectful, and can maintain a trustworthy relationship.

[@hasieselmani5830]

What to do if a landlord is aware of mold on the carpets and the kitchen but refuses to do anything about it? If I had a credit of 720 I’ll buy my own house. I don’t agree with everything you said.

[@DIVISIONINCISION]

Wait until you have a 700 credit score and you can buy your own house. Until then, it's renting.

[@gu3sswh075]

Hasie Selmani you have to understand where he lives the law is significantly in favour of the tenant and completely disregards the landlord. It's not uncommon to see most landlords doing the same thing as him…

[@DrLaithO3]

I was among those who asked in your previous video about screening tenants, thank you for another great video! Wish you all the best

[@GrahamStephan]

You got it!! 🙌🏼

[@jon4958]

i do a pre-screen via an emailed application before even showing the property, this allows me to do any preliminary research. Saves a lot of time and headaches.

[@GrahamStephan]

That's awesome!

[@jon4958]

@@GrahamStephan having access to the realtor database is also so helpful, could verify their previous address verify if they own the home or if they're lying on the app

[@mr.bhattiofficial2264]

Congratulations on you 1 million subs 💯🤯🎉🎉🎉🎉😋

[@hihaters2004]

720 credit score 😂. I’m a landlord and I wouldn’t have tenants using this model. Cali is different I guess.

[@mtdoodles]

hihaters2004 - Exactly! 😂

[@GrahamStephan]

Ha no way 😂 What market are you in?

[@hihaters2004]

GrahamStephan My tenants would be home owners if they had 720 credit scores. I’m in Mississippi.

[@hihaters2004]

GrahamStephan Way too high

[@anyviolet]

+hihaters2004 - I get what the "average" credit score for a tenant likely is; however, all due respect, I think you're depriving yourself with the rather low expectations of tenants. There are a lot of tenants out there with good credit but for their own reasons don't care to own. I have 825 credit score (no, this is NOT an exaggeration) and am a confirmed lifelong renter. I won't buy a house for about ten reasons (just three of which are: I don't want to be tied down to one location unable to sell if I want to move, if you're a *careful and patient* apartment hunter you can get NICE places for less than maint + property tax would cost in nice areas, and I HATE commuting so every time I take a new job I get a cheap, nice place like across the street from the job - literally where I am now). I love being at the top of the list of applicants anywhere I choose to live but wouldn't be so if I hadn't been lucky enough to get landlords who were patient enough not to snatch the first "acceptable" tenant with a 680 credit score. Bottom line: my opinion is that your waiting for a tenant with a really good credit score and super references is a win-win situation for both of you, and you should raise your expectations.

[@jeffreylee3918]

I always arrive at their net income as well based on the credit report or any other obligation they have monthly. Great Video, Graham!!

[@DOSBoxMom]

In my daughter's case, she did need to move in ASAP, but it was because she was starting her first full-time job, and it was too far away from our home for her to commute each day. However, she was very happy to discover that her credit score was high enough that she would NOT need a parent to co-sign the lease, even though this would be her first apartment.

[@Melaninoutdoors]

I have never had landlord ask for bank statements and that seems a bit sketchy. As a tenant you wouldn’t know the landlord any better so how could you trust them? Can you explain the legalities behind that or is this a state by state case?

[@ramblingmillennial1560]

Its not illegal. They can ask for pay stubs or bank statements to prove you can afford a porperty.

[@ramblingmillennial1560]

@Symon Mailhot even looking at the credit report?

[@raygordonteacheschess5501]

That would require a lawyer.

[@DIVISIONINCISION]

When I rented, I was never asked to provide bank statements. I wouldn't give those up for an apartment.

[@ZoraXire]

As a tenant myself it was pretty much standard to have bank statements going back 3 months (a few very picky landlords required up to 6), they would also run a credit report on you, or if you were really with it, you should have a print up with you. I actually started doing this myself when looking for roommates. My score was often high enough my landlord would let me take on a lower scored roommate onto the lease without letting me know they had a bad score. The worst roommates I had to deal with I later found out had terrible credit scores, so this is actually a good idea. Another common thing was if landlords allowed less than a 700 credit score (usually 630 or above) they also ask for 1st and last month's rent, plus a full rent's worth of security deposit up front. So that's 3 month's total worth of rent you need to bring with you, along with your income and credit report at the table before you sign the lease. Its the exact same process you're going to see when getting a loan for a house, car, new line of credit etc. So this is standard behavior. It also shows that the landlords are following fair housing rules and denying leases only on financial status as opposed to anything else.

[@TucsonHomeboy]

Great information! Thanks for the video! Definitely will save among my favorites.

[@GrahamStephan]

Thanks Miguel!

[@robinpaigeperdue4626]

Have to comment to save the younger generation from roommate woes: PLEASE ALSO use the same caution when picking your roommates. If you pick a roommate who is going to leave you hanging in many states you will have to make up the shortcomings. The same sketchy things that applicants do are also what roommates do and it starts with application fees or security deposits or needing a place like, yesterday. Beware.

[@adrianortiz1326]

“If the tenet breathes, THAT is a red flag for me personally “

[@Kingconquest89]

What if you’re in a situation where on paper you don’t seem like an ideal tenant, but in reality you just started making 100k/yr salary and want to find a nice place to live?

[@13unnyjpg]

What I learned as a tenant.....never link your cell number to your Facebook lol I’m just kidding, great info grahamn

[@betterbprepared]

Great info. I also like to look at their car when you meet them. If it is trashy on the inside, more than likely they will keep your apartment trashy as well.

[@aeromedical6750]

My credit score is below 740. Some people look at this and would consider me a risky person to lend to. The reason my score is not in the mid 800’s is because I have ZERO credit cards. I absolutely refuse to use the things. I also have ZERO debt and my wife and I make over $140K between us. We also have over 90K in savings. A clean credit report and debt to income ratio is a far more telling gauge of someone’s likelihood to make good on a debt than a FICO score.

[@FeonaLeeJones]

Wow I feel like asking for bank statements is a bit personal...

[@GrahamStephan]

Not at all, so many people lie about their income

[@agravery223]

@@manictiger yo I was thinking that it's kinda personal what you spend your money on... would it work to print out your bank statements but have that black bar on purchases?!?! Hmmmm🤔🤔 LMAOOOOO

[@drof2th]

I get a copy of their driver's license and picture of their car and license plate!

[@BrianAnthony2010]

I finally subscribed. Honestly I didn't know that I wasn't already subscribed because your videos are always in my recommended section.

[@callumsomers8305]

Only recently discovered the channel and I've now watched tonnes of your videos. The advice and insights you've given have been phenomenal!

[@GrahamStephan]

Thanks so much!!

[@troyschramii4828]

i always want to move in asap. usually the rent from my previous place is paid for the next month too

[@notartsy2449]

Do you rent to Jedi’s?

[@GrahamStephan]

I prefer Droids and Siths, but I'm not allowed to discriminate.

[@adolfhilter]

Jedi: I will live rent free Graham: You will live rent free

[@219garry]

Ha, goddam light saber vs blaster damage right thru the roof!

[@MedievalFantasyTV]

Jedi: These are not the requirements you are looking for. Graham: These are not the requirements I am looking for.

[@mr.bhattiofficial2264]

Literally i was watching you vedios you was close to a million subs i was thinking that he will complete his 1 million tomorrow butt you got there in just a half an hour Congratulations 🎉 again keep your work up 👍 you are doing great job 👍

[@danielbjork5275]

I've been following you since first video. You are a Great inspiration!

[@GrahamStephan]

Thanks for all the support man! Really means a lot!

[@AcousticSilkvibes]

I watched it all the way through and I am subscribed. So i know your not talking about me. Who does all the bookkeeping and accounting from your real estate properties? do you do it all yourself?

[@GrahamStephan]

Thanks so much man! I do it all myself. I have a separate bank account for each property which helps. Takes a few hours per home to calculate all the income and expenses, it's rather simple!

[@AcousticSilkvibes]

Okay that’s interesting. Maybe that could be a video topic on how you keep track of all that stuff. Thanks!

[@507Chaseoz]

The 100 people that "thumb downed" this video are the NIGHTMARE tenants hes warning us about

[@DavidRamirez-fi2ev]

7:35 another way is to call the number and ask if they’re renting any houses or apartment. It’ll throw them off

[@reven3899]

Love your videos. Your super relatable, your still in that phase we're your not done growing financially so your not just showing your wealth off. Your sharing your experience and your journey. Thanks for the great content!

[@GrahamStephan]

Ah thanks so much!!

[@Vale-nh6ey]

I’m a waitress so I deposit my tips every week lol

[@KarolinaLopez]

This is exactly what I was thinking about. As a massage therapist I have cash tips to deposit. So when I become a landlord it's not something I'd use against them..but I guess it depends what their profession is.

[@Zanarkendjp]

A check stub and employment verification will show your a waitress and therefore will have small cash deposits. It’s only fishy when cash deposits are in multiples of x20 and they’re frequent/large.

[@Xengaa]

I'm a full-time student, and I'm gonna start looking for a place that is closer to my university late this year. One of the things that I worry about is that majority of the ads that I see want references from previous landlords. I've never lived on my own before/ rented, what should I do?

[@alohabrah8082]

xenga92 use your parents as reference, that's how I got my first rental

[@alesancoeduard8947]

you can sleep in the car

[@RandDickson]

I wish that when I started college I had bought a duplex and rented most of it out. Would have been a great investment!

[@hieveryone.8508]

@@RandDickson. You wish? Without money, you can dream and wish all day long.

[@RandDickson]

@@hieveryone.8508 I worked full time through college. I paid a ton for student housing. I then bought a house. Could have totally bought a duplex.

[@Notmanypeople]

I've learned a lot from you and I'm the kind of person that doesn't say this commonly, thanks again

[@ritadougherty4403]

Graham... This is possibly some of the best info... I screwed up once because I felt sorry for them and didn't do these things... I got fucked

[@ellieb8482]

As a tenant I feel like my landlord asking for three months of bank statements is a total invasion of privacy. I'll gladly show my deposits for 3-6 months, but I wouldn't feel comfortable printing out all my transactions.

[@sharpshooter188]

3x the rent? Jesus, no wonder no one can find a place to live.

[@DailyLifeOfAzhlyn]

That's standard in rentals.

[@ChefClap]

that's about 30% of income which is the most you should spend on housing

[@userac-xpg]

this is why people wind up renting rooms or moving in with family as adults. Landlords have gotten so greedy the past 15 years.

[@Zanarkendjp]

Don’t want to rent to people who can’t afford to live. It’s business.

[@luisleftyguitar]

A very similar situation happen for me with my very first tenant! My first and only eviction I have experienced was with that tenant! He also trashed my place.

[@00BeesKnees00]

It's unfortunate that when it comes to rentals or employment, standards and expectations have become so strict that second chances are hard to come by. Some people get stuck in situations that are beyond their control. That doesn't mean they are bad or irresponsible people. They're not given a second chance to get back on their feet. Back then you can walk up to a stranger and find an apartment for rent.

[@dcg590]

Why should a landlord risk their livelihood for someone to ‘get back on their feet’? Owning property is a business not a charity

[@00BeesKnees00]

@@dcg590 I never said that it should be a charity.

[@neomacchio4692]

No one says “no second chances.” As the replies said… it’s a HUGE RISK as a landlord. So… the person seeking a second chance must become resourceful. IE Get a co-signer. If they can’t get a co-signer then that’s even more a red flag… they have no one that trusts them. In sum… don’t be a loser. Use your brain. Make yourself valuable. Be a resourceful person. Everything else will fall in line.