State Specific Question About: GEORGIA (GA)

Hi everyone, My dad's grandfather left him property in his will. I was trying to help him rent the property out when a very snoopy renter came out and looked at the place and wanted it.

He said to me that my dad couldnt rent the property out because he was getting homestead tax breaks on the land taxes this year and that we didn't list the property as rental property at the county yet?

He then called back up and said, "ok we'll sign a holding deposit form monday and I'll give you the money then.".

I have the holding deposit to transfer into the actual deposit on the house and all but I was wondering if what he told me before was true about not being able to rent until listing it with the county and the homestead thing?

Your potential tenant sounds like someone I'd try to avoid, and I say that due to bad experiences.

You should check with your local county as to what this guy told you, but I would bet if you rent to him your problems are just beginning.

I don't know GA law, so can't respond to your main question. But my advice is the same as Carl (VA).

Find out if what he says is true, and your obviously already trying to do so. And avoid this guy. I think you would be better off sitting on a vacant property for a while. Especially if you are new to LL. You don't need this joker as a first experience with tenants. I suspect he will be trying to use this excuse as an excuse not to pay rent. Once he moves in there will be habitability issues, not up to code etc.

Barbara [VA] is absolutely correct - a vacancy is much preferable to the expense and nightmare of an eviction. A pushy potential tenant is a big red flag to avoid at all costs.

Welcome! You should be able to get at least a few of your questions answered here. Please don't mind us if we are a little harsh sometimes - we're that way with each other too - it keeps us learning!

Did you run a credit/eviction check on this guy? Don't rent to him unless you do - and set up some basic rental criteria to judge All your tenants by. Things like min. credit score, no evictions, no money in collections to utility companies... This guy sounds like trouble - don't be afraid to say no, especially when you're just starting out. It gets easier in time.

Indeed -- I'll double what Carl said: have you done ANY screening of this person? So far, it sounds like he walked up and put a "holding deposit" (which probably should be a "holding fee" anyhow, although I don't know your state) in your hand and that was it!

Did he fill out an application? Have you run a credit check?

In my opinion, you have a lot to do before you're suddenly renting this place...

- John...

Amber,

Please slow down. First thing is to search this site for Terry (CA) posts called "LL Tips for Newbies, PLS READ".

Do not put anything into writing until you spend time learning the right way to do this. It should only take you a few days to get most of the information you need. It can cost your dad a lot of money and time if you accept the wrong tenant. Click "Landlord/ Tenant State Laws" above. learn some basics about rental law.

Then have decide what your minimum criteria is for an acceptable applicant. Search this site for this subject also. Then give the person who wants to rent from you an application, telling them you will be doing a background check. This application should also include a signed statement from the applicant that says it's OK to run a background and credit check.

My personal opinion is that if you're going to go ahead anyway..don't sign the tenant to a lease! There is something called a "month to month rental agreement". A MTM tenant should be easier to get rid of if it isn't working out for you.

Avoid this person - you will come to regret renting to him.

In many areas taxes are determined as of the status as of a particular date, such as January 1, and then a simple form has to be completed each year.

As others suggested, a few simple phone calls should get your answer.

If this guy is this bossy now, you will never be able to get along with him unless you can stand up and show him who's boss.

Here in Texas, the status of exemptions are determined by the status the property had on January 1 of the current year. For example, if your Dad's grandfather owned the house on January 1 2008 and it was his homestead, then it is homestead for the entire year. Another example, if a property was used as a rental on Jan 1 and was sold on January 5 (or any date after Jan 1) to a couple who lived in the house (the property became homestead property), for 2008 the property is non homestead and the new purchaser would have to declare the property their homestead to get the homestead exemption for 2009 and succeeding years.

As to your potential tenant, you should probably go month to month or not at all. He is someone who obviously wants to be in control and has the potential to become a PITA. This is not good ever, but especially on your first rental. Way too much stress.

It cannot be said enough: don't rent to him. Make up some excuse like, "we've realized that the unit is not ready to rent out. We don't know when it will be."

Amber, I did nto even have to read you entire post.

In fact I only had to read teh first lines.

If you have anything to do with this "tenant" you are probably going to have HUGE trouble.

If you are even considering renting to this person, you either better get otu of this business or do alot of learning fast.

Thanks everyone for your advice!, I have run a background and credit check on this guy and it did not turn out so well. On top of that I've been recieving emails constantly from them, telling me how they want and what they want in the lease LOL. I know that he obviously has more experiance in these matters than me and I have decided to go ahead and let them know we wont be meeting monday for him to put down a holding fee.

Thanks again for everything!

Good job. Now don't say too much when you talk to him. "I'm sorry, you didn't meet our minimum criteria." Keep repeating if he won't back off.

Amber, listen very carefully to what everyone else said above. And also know this: The guy has absolutely NO KNOWLEDGE about what he is talking about. In Georgia the only thing that determines whether a property gets or does not get homestead exemption is whether the owner lives in the house as his primary residence on January 1 and files for homestead exemption not later than March 31 of any given year. Homestead exemption has NOTHING to do with whether you can rent the property. You can rent your property at any time of the year you wish without having to file anything with the county, state, or anyone else. If the owner does not live in the property on January 1, s/he can't file for homestead exemption for the NEXT year. However, for the balance of the current year homestead exemption still applies if it was in place by Mar. 31, 2008. If rented on Jan. 1, 2009, next year the property tax will go up and homestead exemption will not apply.

Again, in GA nothing prevents you from renting you own property! The property does not have to be registered with anyone in any way.

Your prospect is ignorant. He also appears to be a BULLY. If you are smart, you will send him packing! Wait for a respectful tenant who has the financial qualifications to pay you regularly.

Look up GA landlord-tenant law on the web. Follow it exactly. Read this site regularly. If you don't, you're going to get in trouble. Follow the rules of GA landlord-tenant law exactly. Don't discriminate against anyone for racial, national origin, family status, sexual orientation, or any other federally prohibited reason.

Again, as we say so ofter around here: Remember Aldo's rules: 1) The landlord is in charge. 2) The tenant is NOT!

Amber...

Good decision! Just reading about their calling and demanding things even before they've signed anything made me break out in an itchy rash.

Also, if you're going to deny due to ANYTHING on his credit report, be sure to give the proper denial letter. This is EXACTLY the sort of person that is going to freak out and ding you for not following the letter of the law exactly. So, if I were you -- and you pulled a credit report and didn't like something on it -- I would be VERY sure to give him the proper denial letter. Usually this is generated by the credit reporting place for you (such as if you use the credit checks offered here on this site).

- John...

WHEEW! That was brutal ugh!

I ended up going with this comment:

by Jody [MN]) Message: Good job. Now don't say too much when you talk to him. "I'm sorry, you didn't meet our minimum criteria." Keep repeating if he won't back off.

The guy blew up and some lady he had talking for him most of the time went off too, I ended up getting a call from there lawyer and he had a voice recording of our conversations the day before over the phone!.

I had to explain that our meeting in a few days at his bank to sign the hold on the rental property was our only deal, I went on explaining that the so called verbal deal did not exist and just kept saying his background check and credit report was not up to our minimum criteria.... That worked but each one hung up in an extreamly mad fashion, I was told last by the lawyer that this was not over but I'm fairly certain that its over with them as far as I'm concerned. Anyways I want to thank each and everyone of you for your great help and input! This is my new favorite site!....

Don't believe for one second that was really a lawyer. These people are professional tenants and will rip you off any way they can.

WhooHoo! Nice Job! Good for you! If you can stand up to these guys, you'll be just fine - I know it! Just hang out here, and read like crazy. Good tenants will come to you if you screen them.

Well, like others, I congratulate you on "standing up" or whatever, but I still have significant concerns if you really did this: "just kept saying his background check and credit report was not up to our minimum criteria"

If that is true, then you could easily be violating credit laws by not giving them a written letter detailing why you rejected them due to credit and give them details on how to contact the credit provider used.

Normally, tenants don't care about this (I do it anyway -- but they don't care) -- but in a situation where you have angry tenants that now want to "get back at you", I would never give them a huge "in" like that. If they come to realize that you didn't do anything right -- such as giving them the proper denial letter due to something on their credit report -- then they could very well use it against you.

Saying that they "didn't mean your minimum criteria" is fine. Saying that their "credit report didn't meet your minimum criteria" is not if you didn't also provide the proper denial-due-to-credit letter.

- John...

I hear ya John but I ended up not having to get a credit report on him, he actually just admitted to a bankruptcy and the rest of the BAD info about him ( Criminal record ) I found just typing in his name on a regular search engine.

I LOVE IT when a newbie gets coached and pays attention and nails these creepies smack at the starting gate! Wheee Haw!

Excellent! Made my day.

Look back at the conversation with the "lawyer". Darling that was no lawyer.

First of all a lawyer would not be that pro-active.

2nd Lawyers charge for phone calls. This jerk has a bankruptcy. Like he has the $ for a lawyer in his back pocket. NOT.

3rd Lawyers don't make threats over the phone.Not in this scenario.

I could go on,... you get the idea.

I doubt a lawyer would admit to haveing an illegal voice/phone recording over the phone. Or is it legal to record someone without their knowledge in GA?

Good Job dodging the bullet Amber! I am a newbie too- and we ended up screening out what looked like a good prospect initially- we didn't have to run her credit either- found out the adverse by looking at the online court records, county assessor's site, google etc. If you can tell the creditors are after them without running a credit report, Don't waste your time! I agree- the phone call you got was from some friend trying to intimidate you, not a lawyer.

Great going Amber. I wish I found this site when we were first time landlords.

Our first tenants never paid on time and trashed the place on the way out.