Tag Archives: ca

The Trustworthiness Of Prospective Tenants

A few days ago I stumbled upon this article in the NY Times and it got me thinking about the different ways some of my clients (and myself) pick the best possible tenants to rent apartments to in the Glendale area.

The article obviously talks about how credit reporting agencies are essentially changing the substance of their reports to better identify low-risk and trustworthy consumers. Now, a person’s rent payments, bounced checks, broken leases and such will have an impact on their credit score.

Why should an apartment owner care?

With the onslaught of foreclosures and bankruptcies that took place over the last couple of years, many former homeowners are left with damaged credit. Most of them were forced to rent somewhere, but had to get “creative” with signing a lease because most landlords won’t accept someone with the amount of debt they have. The changes being made to credit reports now will help landlords identify the good tenants from the bad tenants without wasting much time.

For example, a young lady I recently showed an apartment unit of ours to in Glendale, CA had absolutely terrible credit stacked with delinquent accounts, huge debt and so on. She also mentioned that she’d be breaking out of her lease to rent the unit because her job simply wouldn’t cover her rent there. On the flip side, I had an older gentlemen who had just been foreclosed on and suffered through a tough divorce from his wife of 30 years. His credit score was also butchered, but it was because of his foreclosure and bankruptcy. He had the same decent job for the last 10 years and was making more than enough to cover rent. So, who’s the obvious winner?

We’re going to be dealing with “bad credit tenants” for years to come because of the financial situation. That just means we’ll have to find the honest and trustworthy ones to work with in order to keep our investments in the green.

What other leasing challenges have you faced as an apartment owner/manager?

JUST LISTED – North Hollywood Apartments – 11 Units – Rent Control – 7.35% CAP

We recently listed an eleven unit apartment building in North Hollywood at 6606 Vineland. The property generates an excellent stream of income and has very low expenses with very little maintenance required.

An experienced apartment investor can quickly add value by applying some cosmetic upgrades and perhaps revamping the structure a bit.

The reason why this deal is relatively a great value-add opportunity is because of the ongoing changes occuring up and down the Vineland Ave corridor. More and more buildings are being renovated, including a new construction on a vacant 60,000 lot just south of the subject property.

For more information about this investment opportunity and others, feel free to give me a call any time. (818) 400-7557

Also, check the LoopNet page!
http://www.loopnet.com/Listing/17233302/6606-Vineland-Ave-North-Hollywood-CA/?