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PAST Actions are GOOD Indications of Your FUTURE Performance

By
Property Manager with Gibson Management Group, Ltd.

...had a phone call on Wednesday from a Realtor who wanted to show one of my rental homes.  I no longer post my rental listings on our local MLS rental section so she or her client must have found my listing on Craigslist, postlets or my website.

I was 40 minutes away and could not provide a key for her so she walked her clients around the home and called me back that they wanted to see inside.  I responded that there were photos and floor plan on my website and they should download applications, complete them and fax or e-mail them to me.  If she wanted to come to my office and get a key the next day, I'd make one available.

The next day, there was no faxed application on the property and no request for a key so I learned that either their credit is BAD; they are in foreclosure/short sale because they are working with a Realtor; OR they wanted to get me face2face and give me their story.

Sure enough * 10:30A and he calls and gives me his name and says they are in IRS foreclosure!  YIKES!  That is BAD.  Who messes with the IRS?  I hear enough of his story to realize he DID want to get me face2face and "tell me their story....they will be  * Perfect Tenants * Doctor Father will co-sign lease * Needs to move right away.

I indicated I did not take lease co-signors for my properties or clients and that I would have to review his application; however, an IRS foreclosure is pretty serious.  He thanked me.  THEN, I get a phone call from his Doctor/father telling me that his co-signing a lease is a Realtor's dream and that I should realize that.  I then suggested that he buy his son and his family a home and keep it as an investment.  I heard the LIGHT BULB go on.  I then called the Realtor who originally represented them and told her what I had told the father and that she and the would-be tenants should get together and discuss THIS option with the father.  I then called the former listing agent for the property I was renting and gave her a head's up in case their Father was SERIOUS!

....meanwhile, that afternoon I did receive a good application for the property and arranged a viewing for a family wanting to move in February 1st.

I trusted my instincts; followed my gut AND my experience; and kept to my policy of reviewing applications FIRST!!!

 

Posted by

Wallace S. Gibson is a Certified Property Manager with over 50 years of property management experience and expertise.  She maintains a specialized property management business in Central Virginia serving Albemarle, Greene, Fluvanna and Louisa counties  

LandlordWhisperer

View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans

"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous

 

Comments(43)

Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches

I like how you operate!  You know what needs to be done, follow the system you've established, and then go ABOVE the call of duty to help your fellow REALTORS! Thanks!

Jan 24, 2010 05:15 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

David * VA has buyer-broker agreements and I had no idea what agreement was in place with the son and the agent.  I don't sell property and the owner of the house already has a local agent that he buys and sells through so I was never in the mix for any part of a sales transaction,

Jan 24, 2010 06:06 AM
Susan Thompson-Solomons
Monument Sotheby's International Realty - Solomons, MD
Southern MD Real Estate-Solomons Specialist

Every rental I have touched has been miserable - virtually all potential tenants have had bk's, foreclosures, and credit in the 500's or a story that would fill volumes. This is not part of my business plan, but I periodically get roped into them. I'm sure it's a different thing if your business is structured this way, but I don't envy you. But as you mention here, rentals have a strange way of presenting opportunities - on occasion.

Jan 24, 2010 08:08 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Susan * STRUCTURED is a good term to use.  Having policies and procedures to PROTECT clients and their properties is PARAMOUNT in property management.

Jan 24, 2010 08:18 AM
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

Wallace, THIS SHOULD HAVE BEEN FEATURED ALSO!!  I will FLAG it for one!  YOU are on a roll hunnie, telling it like it tis!! 

Jan 24, 2010 09:26 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Diane * Thank You *  It must be a full moon or I am wearing my magnetic earrings!!!  Something is in the air!!

Jan 24, 2010 09:33 AM
Tammy Fullriede
Bale Realty - Wilmington, IL

Wallace, You sure did hit the nail right on the head.  TRUST YOUR GUT!!! Follow your instincts and get a application. I would also like to add, have the potential tenants pay for a credit report.  The credit report will always tell you if there story is completely true.  We had many potential tenants tell us they had bad credit due to medical reasons...but the report showed otherwise.

I ALWAYS believe is giving people a second chance, but don't lie to me. Hardships happen to all of us from time to time but tenants will have much more success by being totally honest. 

 

Jan 24, 2010 09:55 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Tammy * Thank you * when callers volunteer they have bad credit, I'll ask why and if they start with the DRAMA, they loose me entirely.  

Jan 24, 2010 10:04 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Wallace, first of all, being a native Virginian, I LOVE your signature line! It sums up how we feel, coming from such a special state.

That doctor should definitely buy his son a house if he wants to help him - only problem is he may never get him out!

Jan 24, 2010 10:44 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Sharon * If you run into Wendell Davis, tell him I say HI * we were on the NARPM board together, and YES, the doctor should have considered buying the son a home.  

Jan 24, 2010 11:14 AM
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

I agree with Roger's (#16) views. I know that an IRS lien is serious, and this client probably was going to be trouble. However given the current economic conditions, if landlords do not loosen their credit requirements some a lot of people will be living in parks and under bridges.

Jan 24, 2010 11:44 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Tom * I agree * they can rent from DIY landlords who do not hire professionals with the experience and wisdom to see they will be trouble.  There are ALWAYS landlord who will take tenants with a good story!!!

Jan 24, 2010 11:58 AM
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

Great thinking outside the box.  You seem like an awesome manager.

Jan 24, 2010 03:46 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Thank you for your kind post * I suspect age and wisdom trumps youth and enthusiasm!!!

Jan 24, 2010 08:39 PM
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Whaddaya wanna bet that if the father owns the house, the tenant never pays rent again? That's the father's problem, huh?

Jan 25, 2010 01:57 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Yes * he's the one who raised the son so he should be the one to pay for his mistakes!!!

Jan 25, 2010 02:17 AM
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Where are all these people who are "walking away" from their problems going to go?  Good job protecting your Client's interests. 

Jan 26, 2010 02:50 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Beverly * there will be faux property manager/real estate agents who hear their story and think they MUST present them as clients to rental property owners, and there will be private landlords who will think Big-Bad-IRS and take them.

Jan 26, 2010 10:01 PM
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

Wallace, interesting, I don't do many rentals. When I do, however, I've never requested they complete the application first. Very interesting you do this and it works well for you. Thanks for the lightbulb moment.

Jan 28, 2010 05:14 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Bev * they can preview the home on my website with beaucoup photos and floor plans.  They can decide at that point whether they want to see the inside which is actually the last part of my process.

Jan 28, 2010 07:04 AM