Credit report - PeachParts Mercedes-Benz Forum

ytr1903 · #1 06-05-2007, 09:39 AM

We have a few rental units (anybody want to buy them?). Our most recent problem is a young couple who have decided not to pay rent anymore. We have started the eviction process and if history repeats itself, we should have them out of there in a relatively short time. My question is: Is a landlord able to affect a renter's credit status? If so, how does one go about this process? It occurred to me that once these leeches are evicted, that they will probably continue to ply their evil ways on the rest of society. It would be nice to have some input into their financial future.

Thanks,
Tom

kerry · #2 06-05-2007, 09:46 AM

Yes. Go to MrLandlord.com. Register for their credit check service, and have the company make a collections report on your tenant's credit. Or, if you are already running credit checks on potential tenants, your existing credit report company should be able to help you with a collections letter.
City or County should also be keeping evictions records, so your tenant's behavior will be public record. Are you checking those records before renting to a tenant?
There's not many more satisfying experiences as a landlord than getting a phone call from another landlord who's checking the credentials of a potential tenant and she asks you if you did indeed evict tenant X.

John Doe · #3 06-05-2007, 10:03 AM

Be very careful in making negative credit reports. This is becoming one of the biggest growth areas of mass tort litigation. Call it the new Fen Phen if you will.

Medmech · #4 06-05-2007, 12:05 PM

Quote:

Originally Posted by John Doe

Be very careful in making negative credit reports. This is becoming one of the biggest growth areas of mass tort litigation. Call it the new Fen Phen if you will.

Like wild fire. Less than a year ago or even six months I could not find an attorney to litigate CR and Debt issues for my clients, I now get several solicitation calls a week.

John Doe · #5 06-05-2007, 12:19 PM

Quote:

Originally Posted by Howitzer

Like wild fire. Less than a year ago or even six months I could not find an attorney to litigate CR and Debt issues for my clients, I now get several solicitation calls a week.

When my wife was in college her checkbook was stolen. The thief (as they often do) went straight to Wal Mart and wrote some checks, the last of which bounced because she stopped payment. Wal mart sent a nasty gram. Her father (who owns the bank) put together a document package from the bank including the security tape from Wal Mart and Wal mart said ok, we are satisfied. Five years later my wife found herself in the unfortunate position of having to go to a Sam's Club. She wrote a check and they wouldn't take it. Reason--Wal Mart had black-balled her in their system. A credit check then revealed that they had turned it into all three credit reporting agencies. Cost 'em $16K for dat.

SwampYankee · #6 06-05-2007, 10:48 AM

Quote:

Originally Posted by ytr1903

We have a few rental units (anybody want to buy them?). Our most recent problem is a young couple who have decided not to pay rent anymore. We have started the eviction process and if history repeats itself, we should have them out of there in a relatively short time.

I hope it's not my sister

Kidding, she and her boyfriend are in Chicago and pretty good tenants from what I understand.

I'm surprised the eviction process is relatively short. In CT it's fairly difficult and drawn out. My grandfather had a tenant who rented a cottage from him for about 10 years or so on Coventry Lake. He decided that for the last 2 years he wasn't going to pay any rent. Or dispose of any garbage. Or do any of the pre-arranged maintenance. And complain about every little thing that needed repair.

I'm not up on the rental laws, but I think my grandfather had to wait six months before he could start the eviction proceedings and had to go through several promise-to-pay periods. IIRC it was over a year before he was finally evicted.

I am hoping to pick up a couple 2-3 family houses in the area over the next few years despite everyone's horror stories

ytr1903 · #7 06-05-2007, 10:51 AM

Kerry Edwards--
Thanks for your nuts and bolts answer to my question. I will definitely check into your resources.

JohnDoe and PaulC-thanks for your legal take on my question. What do you guys suggest doing in lieu of making a bad credit report and yet have some effect on these tenants' future?

Tom

ytr1903 · #8 06-05-2007, 11:16 AM

SwampYankee,

Good luck on your future landlording. I can only say that has been a cross to bear for us. There is always something to deal with on rental property. I like to compare rental property to adopting another family. This family is completely dysfunctional, has absolutely no fiscal knowledge or responsibility and will lie until you are so worn out that just want to walk away.

Tom

Designo_E320 · #9 06-05-2007, 11:25 AM

I send EVERYONE who owes me to collections which automatically stains their credit reports. Now, a consumer CAN challenge this. If he does, then the credit reporting agencies will contact me and I never fail to send them the documentations showing that they are deliquent so the stain REMAINS on their credit reports. If I were you, I would do EXACTLY the same thing and keep records in a very safe place. DON't PUT UP WITH NON-PAYING PEOPLE. I feel sorry for NO ONE when it comes to my family's well-being. BE RUTHLESS!

ASaltyDog · #10 06-05-2007, 08:10 PM

Quote:

Originally Posted by Designo_E320

I send EVERYONE who owes me to collections which automatically stains their credit reports. Now, a consumer CAN challenge this. If he does, then the credit reporting agencies will contact me and I never fail to send them the documentations showing that they are deliquent so the stain REMAINS on their credit reports. If I were you, I would do EXACTLY the same thing and keep records in a very safe place. DON't PUT UP WITH NON-PAYING PEOPLE. I feel sorry for NO ONE when it comes to my family's well-being. BE RUTHLESS!

That pompous get-back-at-em attitude is likely to cause you a lot of near term trouble.

Who's to say they really owe you the money? You? Perhaps you gave them an inferior service or product, and you still feel they owe you. Before an impartial court hears and decides, for now you have this little edge of credit bureau reporting. You pay the credit agencies a hefty fee, and in return you get retribution before anything can be done about it.

Yes, lawsuits are popping up at 20x the rate of just last year, fought heavily by the credit agencies (Experian etc) who are making billions on their little scams. A yacht here, a beach house there to the right politician and it's no wonder laws favor this criminal wave of intimidation and extortion.

Cell companies, long distance voip, credit card companies have been on the crest of this wave for a good while. "Pay us our fees, surcharges, late penalties, over-fees, under-fees, bogus charges, inferior services and any other charges we make up -- or we'll report you to the credit bureaus". They know from very their expensive market studies that in the past only about 5% of people actually file a suit, whom they almost always settle out of court. But not any more. Damages are now being awarded in droves to consumers who have been victims of this little scam - to every cry baby who thinks you owe them $25.00 and have tried to ruin your life through early, unsupported credit bashing.

Try $5k in damages, and all of a sudden things change. That last mortgage you got nailed an additional 2% on interest? Adds up to about $3,000.00/yr – all because of unfounded credit reporting outside of the court system. Little pip-sqeaks that have used this tool in the past are now finding themselves liable for losses and damages caused by their little get-even fits. Get even is right - they rarely profit from this activity. It's all about the gloating and bragging. They actually pay a large sum to credit agencies to be allowed to do throw whomever into the bashing list, for whatever reason.

Enjoy your little stick-beatings while you can

t walgamuth · #11 06-05-2007, 08:53 PM

i try to avoid renting to folks who will be a problem. my philosophy is that it is better to have a unit sit empty than rent to a bad tenant.

i do check them for litigation but not 100%.

i do ask them to fill out a rental application in which i get drivers license and soc sec #, credit card numbers and all kinds of stuff i can never believe they give to me....but mostly they do. the more detailed information about them i have in hand the better they pay their bills.

i have to evict someone on the average of maybe one every five years....and i have 23 units of residental and or commercial, mostly residential.

i have very nice units, in excellent locations, i charge as much rent as i can get and maintain full occupancy. i get a large deposit and i never never never rent to someone who does not have all the money up front.

i remember a few years back i was feeling a little reluctant to evict someone who i felt a little sorry for and my attorney said..."if you are going to be in business you need to run it like a business"....and i try to do that.

people make lots of money with slum lord property but i would rather have a more slim profit and avoid evicitions etc.

it is really tough to make a profit at it now though with 8.125% mortgage money and a real estate market that is kindof soft.

the only time you make it in any significant amounts is at sale time.... and then better hope you can trade into something to avoid capital gains.

tom w

Medmech · #12 06-05-2007, 11:08 PM

Quote:

Originally Posted by ASaltyDog

That pompous get-back-at-em attitude is likely to cause you a lot of near term trouble.

Who's to say they really owe you the money? You? Perhaps you gave them an inferior service or product, and you still feel they owe you. Before an impartial court hears and decides, for now you have this little edge of credit bureau reporting. You pay the credit agencies a hefty fee, and in return you get retribution before anything can be done about it.

Yes, lawsuits are popping up at 20x the rate of just last year, fought heavily by the credit agencies (Experian etc) who are making billions on their little scams. A yacht here, a beach house there to the right politician and it's no wonder laws favor this criminal wave of intimidation and extortion.

Cell companies, long distance voip, credit card companies have been on the crest of this wave for a good while. "Pay us our fees, surcharges, late penalties, over-fees, under-fees, bogus charges, inferior services and any other charges we make up -- or we'll report you to the credit bureaus". They know from very their expensive market studies that in the past only about 5% of people actually file a suit, whom they almost always settle out of court. But not any more. Damages are now being awarded in droves to consumers who have been victims of this little scam - to every cry baby who thinks you owe them $25.00 and have tried to ruin your life through early, unsupported credit bashing.

Try $5k in damages, and all of a sudden things change. That last mortgage you got nailed an additional 2% on interest? Adds up to about $3,000.00/yr – all because of unfounded credit reporting outside of the court system. Little pip-sqeaks that have used this tool in the past are now finding themselves liable for losses and damages caused by their little get-even fits. Get even is right - they rarely profit from this activity. It's all about the gloating and bragging. They actually pay a large sum to credit agencies to be allowed to do throw whomever into the bashing list, for whatever reason.

Enjoy your little stick-beatings while you can

sooooooooooooooooooooooooooooooooooooooooooo true.

you should copyright that.

once the link is made between scoring and credit granters the mother of all lawsuits will begin.

You forgont about insurance company's.

SwampYankee · #13 06-05-2007, 12:49 PM

Quote:

Originally Posted by ytr1903

SwampYankee,

Good luck on your future landlording. I can only say that has been a cross to bear for us. There is always something to deal with on rental property. I like to compare rental property to adopting another family. This family is completely dysfunctional, has absolutely no fiscal knowledge or responsibility and will lie until you are so worn out that just want to walk away.

Tom

Thanks, Tom. I have no illusions of it being easy in any sense and would definitely be treating it as a business. Are your properties local to you? Urban or suburban? I'm hoping to pick up one or two here in my town, essentially suburbia. There are lots of professional types who work in Hartford but don't want the hassles of homeownership or condo life. Every now and then a multi-family pops up that needs updating or a facelift. That's what I'm looking for.

Headaches aside, has it been a worthwhile investment?

ytr1903 · #14 06-05-2007, 02:16 PM

SwampYankee,

Our properties are in a middle class, small town. The properties have modestly increased in value, but this is not San Diego or Fort Lauderdale. Real estate values just keep plugging away at around 2-4% increase annually, although in the last year I believe that the soft market even hit here and consequently the values may have decreased slightly. Right now, I am probably not a good person to ask about rental properties and their value.
As I stated before, I think that the person best-suited for landlording is a parental type who is ready to adopt a family or families, who cannot think for themselves, who have no concept of finances, and who live month to month or even day to day. I have discovered my inner self by owning these rentals, ie. I am way too anal retentive to do it and that a sense of responsibility is not shared by a lot of other fellow humans. Whew! I hope my rant helped you, it certainly helped me.

Tom

dlssmith · #15 06-05-2007, 04:34 PM

I think you'll be ok with reporting to a credit bureau, etc., if you reveal in the rental application that that's what you intend to do if there is a problem. Get the applicant to sign off on the credit check advisory. And always get legal counsel. It's usually cheaper up front than trying to pay a lawyer to fix something after the fact.