Can I ask the applicant to give a copy of tax return

[shawnusa]

What is the name of your state (only U.S. law)? Mass

I have a house for rent. Can I ask the applicant to give me last 2 years tax return to prove that they have money and will pay the rent? I also asked the bank statement. Please let me know if I asked too much.

Any suggestion on what kind of background check that I need to do and where I need to go. I am new to these.

Many Thanks!!!

 

[CourtClerk]

I know someone who on the last 2 tax statemens made close to 100k/yr.

He now works for $12/hr. What's your point?

 

[shawnusa]

I think you may right. It does not mean anything.

Thanks for the info!

 

[Gail in Georgia]

Far better to ask for current earnings and leave statements to confirm income.

Gail

 

[atomizer]

OP, asking for two years tax returns is not a bad idea.
One of the things you need to determine is work stability. Many people are workplace drifters that can't seem to hold a job. Ask for last two landlord references. Keep in mind that current LL may lie to get rid of tenant, and don't forget to do a criminal history as well.

Lastly, you may want to consider if you want to go month to month or go with a yearly lease. Both has positives and negatives.

 

[Antigone*]

OP, asking for two years tax returns is not a bad idea.
One of the things you need to determine is work stability. Many people are workplace drifters that can't seem to hold a job. Ask for last two landlord references. Keep in mind that current LL may lie to get rid of tenant, and don't forget to do a criminal history as well.

Lastly, you may want to consider if you want to go month to month or go with a yearly lease. Both has positives and negatives.

If it were me I'd probably be a bit resistant to give them to you, but I do have to tell you that when we underwriting loans, we always get 3 years tax returns.

My point is that this request would not be out of the question.

 

[atomizer]

If it were me I'd probably be a bit resistant to give them to you, but I do have to tell you that when we underwriting loans, we always get 3 years tax returns.

My point is that this request would not be out of the question.

Source of income and time on the job can usually be verified, so I don't usually ask for tax returns. If applicant claims to be self employed, or has unverified income, I would be inclined to ask for tax returns.

 

[Antigone*]

Source of income and time on the job can usually be verified, so I don't usually ask for tax returns. If applicant claims to be self employed, or has unverified income, I would be inclined to ask for tax returns.

atomizer,

The tax returns can offer so much more information than just how much someone earns

 

[Andy0192]

It's pretty easy to print out a tax return that says whatever I want it to say. That doesn't mean I actually filed that return with the IRS, or that it's truthful.

I'd be cautious about relying on tax returns as a primary method of confirming employment or income.

 

[xylene]

Why don't you ask for an application fee and pay a background check service to do the investigation and the company get these documents for you. Let the company get the documents from the applicants, then you go over them with a professional and the service handles the document security...

That why you don't have any connection to the decision. You seem like a friendly professional landlord, rather than an intrusive one grilling tenants to make up for being a one property landlord with no experience...

Plus it saves a lot of legal headaches in rejecting applicants, recourse in dealing with applicants who end up being bad tenants, and not having to worry about securing files.

 

[atomizer]

You seem like a friendly professional landlord, rather than an intrusive one grilling tenants to make up for being a one property landlord with no experience...

I must point out, that the "SFH property" landlords often have the most to lose and therefore should be more than cautious when renting. They often depend on the rental for making their mortgage payment and really don't have the legal means or funds for an exhaustive court battle. If the questions asked are too intrusive, then the applicant can always choose to walk away.

A W2 form along with tax return can also be of help determining your applicants length of time on the job.

 

[xylene]

I must point out, that the "SFH property" landlords often have the most to lose and therefore should be more than cautious when renting. They often depend on the rental for making their mortgage payment and really don't have the legal means or funds for an exhaustive court battle. If the questions asked are too intrusive, then the applicant can always choose to walk away.

A W2 form along with tax return can also be of help determining your applicants length of time on the job.

I'm sorry, perhaps you misunderstood my carefully worded advice that, on account of have so much to lose he should have a professional agency screen his prospective tenants, which of course would include all relevant financial data...

A landlord who is one late payment away from not making a mortgage is a terrible landlord.

Prospective tenants looking to rent a nice single family home can smell that.

Having a agency do a background check speaks of a quality professional landlord.

Having a landlord running the show is asking for a mistake and a discrimination claim.

Not to mention it is a huge turn-off to see a landlord's less than flattering operation right out of the box...

 

[atomizer]

I'm sorry, perhaps you misunderstood my carefully worded advice that, on account of have so much to lose he should have a professional agency screen his prospective tenants, which of course would include all relevant financial data...

Having a landlord running the show is asking for a mistake and a discrimination claim.

There are plenty of SFH landlords that are very capable of running a business, and as a frequent user of this forum you are aware of property management companies that have screwed landlords and then left them to clean up the mess.

The best thing a newby landlord can do is to learn the state and federal laws before he markets his property. As with anything, research is the key.

 

[shawnusa]

Lastly, you may want to consider if you want to go month to month or go with a yearly lease. Both has positives and negatives.

First, thanks all for your input!

Can I use the following word to terminate a one year lease before the end date?

Termination of Lease: A full 30 day written notice, prior to the 1st day of
the month, is required. The landlord can do a final walk thru inspection with the tenant.

If I can, then it can work just like the month to month. Correct me if I am wrong.

 

[atomizer]

Theoretically, the reason you want to have someone on a yearly lease is that you have them locked in for a full year. If you start putting in clauses that give a tenant an out with notice before breaking the lease, then you no longer have a yearly lease. Your advantage is gone. You lose in that if your tenant turns out to be a pita and you want to get rid of him you will have to prove to the courts that the tenant has breached his lease. With a month-to-month tenant you in most states don't need a reason to terminate a lease. Put in a renewal clause that says that a 30 day notice is required before renewal. Or that the lease self renews if none is received 30 days prior to the end of the lease.

There are online leases that you can download that are specific to your state. I would use one of them and have it tailored to my needs. Writing your own lease from scratch and being new to the rental business is asking for a disaster.

Forget the final inspection clause. You only want stuff in your lease that will help you. If your tenant has a right to be present during an inspection, then it is provided by the state of Mass and you need not address it in your lease.