State Specific Question About: NEW HAMPSHIRE (NH)

I have a very nice 2bd apt in a 4 fam for rent. I spent big $$$$ renovating EVERYTHING, hardwood installed, new appliances, decks, carpets, fixtures ect....

Well...I got nervous about the vacency about half way through the rehab, a nice young couple with two children came to look at it. I ran credit ( 607 , kinda low ) and only the man works, wife home with 2 kids ( 2 cats as well ). Says she gets child support of $800.00 to pay for rent...no proof. I got desperate and agreed to rent to them...NOTHING in writeing and rehab still not done.

Anyway...yesterday a divorced woman came to look and she lives alone with 15yr old daughter. Says she'll give me 2 months rent up front, sec dep and prorate this months rent and move in right away. Best of all, divorce decree states huisband will pay rent until daughter is 18. Ran his credit and he is an 811, no debt, drives new BMW.

He confirmed, said he can pay be CC, check or cash.

Do I go back on my nice young couple with terrible credit and 2 kids?

Have been in the exact same situation. I called the confirmed new tenant and advsd that the other partners/investors have decided to do something else with this investment.

You should do what is best for you & pick the second choice, the one with the good credit & the ex-husband paying rent.

While I do think one should honor his word in all circumstance (written or verbal) there is really nothing binding you here. Did you give a time frame to them? If not, you can legitimately (and with clear conscience) rent to party # 2 because party # 1 has not yet signed a lease and given valuable consideration (money!). You agreed to rent to them at the time you told them. You did not agree to hold the unit vacant for an indefinite period of time while they putter around. Think of it this way: I got to a car dealership and negotiate a steal of a deal price on a new car. Car dealer is desperate, so he agrees. I decide to go to lunch. Meanwhile, someone else comes along and offers $500 more on the same car. The dealer has every right to sell the car because I have not given him anything in exchange for his promise. The promise is good for that particular moment in time unless we sign something and/or I put down money.

I wasn't there, so I can only guess at what I would do.

Meanwhile, houses for rent are a dime a dozen, this young couple will find something just as quickly as they found you.

Go with the second couple, but you should feel bad. Written contract or not, you gave your word and are breaking it.

Next time you feel that anxiety, think about this situation before you make a decision.

IF you still want the second couple, sign with her and the ex husband. Dont cut the first ones loose till the second party gives deposits and signs.

I was in a similiar situation (although I had not yet agreed to accept the first party and they were in the process of getting a guarantor, when a much better prospect came alone.)

I hated to say no to the first party, but I HAD to do what was best for the property (especially since our landlord tenant laws are so one sided here).

The first party sent me a nasty email and left a tearful message on my answering machine.

Thank you all.

That is what I was thinking, it just helps to hear it from others.

Believe it or not...most people I asked said I should honer my word...even if it was not the best thing for the property.

You should honor your word.

Not sure what you said, but it sounds open ended. Was it that you would rent to them when the rehab was done? Or within a certain number of days or weeks? Or what?

In my particuliar case I had NOT agreed to rent to the first party at that time. I was waiting for their guarantor to give me his info. I also offered to help them find another apt. (till she got nasty)

This can be a difficult business. Ultimately you have to make the decisions. There is no one else backing you up or ready to pick up the pieces if things go wrong.

I agree "dont lie to people".

But never forget this (and I will type it in capitals)

YOUR TENANT HAS NO ALLEGIANCE TO YOU AND WILL ALWAYS PUT THEIR INTERESTS BEFORE YOURS.

Over the years I hgave had numerous tenants suddenly back out of deals (even when they have signed and agreement).

Ultimately you must do what is best for the business.

And always cover your butt!

NEW HAMPSHIRE: if the first party was serious, tehy woudl have given you a deposit and signed a lease.

For all you know, they hjave been out looking for something better and may have backed out on you at the last minute anyway.