If you have ever been a tenant in a past life (I have) , some old fart was obviously your first landlord. And you probably remember that first LL's name and that first renting experience to this very day (I do).

Now, fast-forward to the present day and the roles are reversed now,....you are the landlord and now you have 1st time virgin tenants who want you to be their 1st landlord.

I have a young couple who are very interested in renting one my 5 vacancies. They both work full-time at the same job, both make $12.50/hour, and they seem very eager to get out Mom's house and start making a life of their own.

Of course they have no rental history and they are not old enough yet to have had time to screw up a credit report. They do have parents who are willing to help out if the going gets tough.

I know what most of you all are thinking now. Can anyone here say anything positive about this situation? And I still have 5 vacancies too.

Jim in OC,

Their rent is only $475/month. This is one of my small (2/1) bare-bones, no frills houses. Yes, their combined incomes will (should) pay the rent with ample money left over.

I am meeting again with this couple late this afternoon. I plan on having a "eye to eye',...'come to Jesus' talk with them. If I think they are 'trainable', this may be the deciding factor in renting to them. If not, I can always steer them across state lines over MYOB. He would not blink an eye with this couple.

David (MI)

I passed on a couple just like this, only she was already pregnant (and she had the better job). Mainly because I had a tenant that I trusted enough to ask about them and she told me "they fought a lot". Lucky for me, I decided on an older lady that has turned out to be good so far, before the younger couple got their application in.

With your situation, I would probably do it, but I would make sure I got a full month's deposit and watch them like a hawk. Start legal eviction if they are late. I think I would tell them that you'd be coming by to change the filters, so they'd be prepared for regular visits. You can catch other problems before it gets too bad. Good luck!

Like you, I'm not blessed with a steady stream of ideal applicants and have to strike a balance to fill vacancies. I would require the customary 1st month's rent, max security deposit consistent with any new tenant.

I'd also ask for an additional $475 towards the last month's rent and explain it's needed to offset the risk due to their lack of credit history. My lease reflects this extra month with the phrase "AS an inducement to the landlord to enter into this agreement, tenant agrees to deposit an additional $475.00 with the landlord as the last month's rent. If tenant's claim they don't have it and you are still enticed to rent to them, ask for an additional check for 1 month's rent - DATED THE SAME DAY IT'S RENDERED -towards the last month's rent.

If the rent is paid as agreed, the check remains in your file (it actually becomes "stale"after 6 months). If the rent is not paid within the 5 day grace period I'd explain that this check WILL be deposited on the 6th day, unless there is some compelling reason for delay that you both agree to. I've had a 60-70% success rate with this plan.

I'd look for other qualifying signs - are their cars neat inside and maintained? Do either of them have other competing obligations such as a car payment or child support.

Other observations?

I recently had a young guy, early 20's, military vet (I love military people) move in. He had a piercing, a tatoo, and I noticed he was wearing a "Zombie Killer" hat. I asked my millenial school teacher daughter-in-law if I should read into the "Zombie Killer" hat. She replied no - it's harmless. One day after about 2 months he chased his girlfriend down the common hallway with a butcher knife after cutting his own wrist. Blood on the walls and carpet. He was distraught she was moving out (she was not on the lease). Further research on my end revealed this young Army vet was dishonorably discharged.

I rent to new couples all the time! Our tiny houses attract young and old - no one in the middle. As long as you are very clear up front about expectations regarding paying the rent, taking care of the place, no "Drama in the Driveway" etc. it can be just great. They are trainable and you get to train them right.

WMH,

Thanks for the inside tips on young 1st timers.

Now, you keep saying your rentals are 'tiny'. Just how tiny are they? Less than 600 sq. ft?

We rent to students on a regular basis. Generally their first apartments. Only occasionally do we have an issue. We have a strong lease and all showings include “if you like loud music and loud parties you won’t like it here.”

Nellie,

Roy my question is when are the utilities being placed in their names?

Next question when is vacancy #4 coming on the market?

GEE'S man!!!!!!!!!

I usually rent to students, but have rented to people like your prospect. Most of the time it works. Stay on top of any signs. At their age, they will expect you to take the rent from their account.

I have taken 1st time renters, and first time togethers. currently have a 1st time renter, single in the same place for 7 years, and a first time together for 9 years. The first together had the place the of the 1st timer for a few years, then got married and with a child due, took a bigger vacant unit. I am also on my 5th year with an unmarried couple with a child that works in a small family business. All are great tenants. Based on who they are, not the class they belong to. They keep the place nice, they pay on time and they don't have drama. All come from strong families.

MYOB,

I have 2 out 5 vacancies that are ready to rent,..right now. I also have 2 good prospects for each house, the young couple of this post being one of those.

Around noon today, I will be accepting a holding deposit from single lady with a good job. She will rent the house that was vacated on Friday by the female tenant who lost her private insurance company disability check. She left that house spotless and so I was able to show it the very next day.

I'm so depressed right now about what (no who) has been asking about my available house that any couple that doesn't have four children from four different men and has a bun in the oven from her current boyfriend who works at Dunkin Doughnuts while she works at, well, making babies with anyone she dates sounds pretty good to me!

This is where having policies and procedures in place BEFORE folks show up helps.

Here is my list of "fixable" issues, copied and pasted directly from my applicant screening checklist. Modify as desired! Btw, if you don't see an issue listed below, it's what I consider "automatic Disqualifying." Do not think these are the ONLY criteria I screen on: these are just the ones I'll make exceptions with provided I get extra $ in hand.

Note: If they have more than one "exception", it counts as a DQ. So your young 'uns would be good to go if their ONLY issue is lack of land lord reference.

* No LL references = 150% security deposit

* 40%-50% debt payment to income = 150% security deposit

* No stable income (less than 90 days on job) = 200% security deposit

* No stable residency (two moves in < 3 years) = 150% security deposit

* 1-3 currently unpaid bills &/or collections (medical not included) = 150% security deposit

Btw, forgot to mention: with newbies where I can't do the 2-minute in home inspection, I will put them on a 90 days "trial lease" that automatically renews for 9 months upon successful completion. That way if they get stupid in the first 3 months I simply non-renew them with a 30 day notice.

Having this "trial period" hanging over their heads goes a long way to ensure proper compliance, more so than any stink eye I can throw at them during our "talk/lease explanation." It's a combination of the old "Carrot/Stick" motivational principle:

Carrot = if you do well you get a real lease.

Roy, our tiny houses range in size from 256 square foot studios to 650 square foot cottages. The cottages are legally two bedrooms but in order to get laundry rooms, we installed the washer & dryer in the second bedroom and call it a utility room. Most tenants have also put a single bed in there for visitors (people at the beach get visitors!) The bedrooms are tiny, they barely fit a queen size bed and a dresser.

We do have a few 1000 square foot townhouses. We list those as "large" LOL! And a few mobile homes that are pretty big. They were 3-2 but we turn them into 2-2's. The smallest former bedroom becomes an office or guest room.

Roy the sky's not falling after all!!!!

Gail GA-- Gail I hear you loud and clear. I had gotten down to selling at the courthouse steps a home I sold last year. Women is 37 has 3 grown (teenagers) and was pregnant with the 4th. The man is in jail and is a convicted felon-- how do people make these types of decisions in life? She also accused me of charging her to much for the house and interest that was to high yada yada yada.

She owed 3K and Saturday she calls and says she has it-- so I meet her at the H-depot lot and she gives me 1900.00 in MO's and 1100.00 in cash-------- swears this will not happen again.

So I ask you: its Nov getting into the holidays-- do I foreclose and then have to evict her from a home she use to own-- over the holidays? Ruin her and my joyous days coming up. This upsets me to no end.

WHM,

Can you post some exterior photos of your 'tiny houses'? The ones near the beach, are they built on stilts ?

The small cottages are on short stilts. Then we have one modular home that is on such tall stilts it looks ridiculous, but it never floods LOL!

Our townhouses are not in a flood zone, so no stilts.

Roy,

Sounds like keepers. Making $4000/month gross and looking at a $475 unit sounds like they are being realistic on their expectations. If they don't have a bunch of debt (or rack up a bunch) then they should do fine.

I wouldn't have a problem renting to them.

They both income qualify, if one leaves the other has no excuse not to pay.

I will speak to parents and ask questions just like I would a LL.

I have found virgin tenants either go bad or do well and have no issues. 90% 0f mine have gone well.

What is your come to Jesus meeting, like?

Roy,

Our criteria does not accept first time renters. First timers can be very time consuming.

We would only accept your applicants with the parents also signing the lease.

Spend extra time orienting them to the new lease and drop by often.

BRAD

Brad20K,

Last night, with only a dim porch light on and it was raining too, this couple and I sat down on the hard concrete front porch together (no chairs here) and I read my lease to them. It was like telling a bedtime story to two small children here. And they listened carefully to everything I had to say.

Yes, these kids are trainable since they are young, naive and no other LL has corrupted them.

Brad20K,

Simply let parents know at the outset that all you need from them is their financial guarantee, not their input on how to run your business. They are welcome to advise and council with their offspring as much as they like, but when the rubber meets the road these young people need to learn to deal with the land lord without a parent "crutch".

Maybe frame it that way: "Mr. and Mrs. Jones, I know you'll probably have some great life-advice for your kids. Parental involvement is great! How about we agree that you are their counselors, mentors, shoulder-to-cry on, but when it comes time to be responsible adults we want them to learn how to do this on their own?"