Agents! Let your RENTER/Buyers KNOW that They Need a Verification of Rent

By
Property Manager with Gibson Management Group, Ltd.
https://activerain.com/droplet/42cl

Many of the steps for a first-time or prior homeowner are the stricter requirements for renter buyers to have their landlord(property manager) provide a Verification of Rent.

Over the years, I have formulated a policy on providing these verifications....

FIRST, I charge a $50 forms fee for this process...either the tenant brings me a check OR the mortgage company provides me a check and THEN I will provide the verification VIA e-mail to both the LENDER and the TENANT.

SECOND, I do NOT provide a VoR MORE THAN than 60 days BEFORE the end of the tenants' current lease UNLESS the purchaset is new construction being built; OR there is a replacement tenant in place to take over the balance of their current lease.

WHY WOULD I HELP A RESIDENT MOVE AND BREAK THEIR LEASE?

If there is no replacement tenant in place FOR THE PROTECTION OF MY CLIENT/the property owner, why would I agree to providing a VoR?

Few real estate agents and tenants actually realize that this is NOT a requirement in state landlord-tenant laws NOR is it a requirement in any lease form I have ever seen....most landlords provide this as a COURTESY to their tenants; however, going above and beyond that will assist a tenant and be detrimental to my client is not going to happen.

....so agents, ask your renter/buyers about their current lease end date and make sure they have a discussion with their landlord/property manager on their plans so that their mortgage lender's request for a VoR can be addressed and handled in a prompt and efficient manner.

 

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  

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"...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

 

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Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Indeed it is a courtesy Wallace, and I agree, unless there is a replacement tenant, why would you help someone break their lease.  It doesn't make sense and it's not protecting the owners investment.

Aug 24, 2013 10:07 AM #1
Rainmaker
3,985,753
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

The courtesy probably keeps the rental unit in better shape by wiorking with them to leave early

Aug 24, 2013 10:43 AM #2
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Wallace.  Those that demand VoR are idiots.  I just don't respond to them.

Aug 24, 2013 08:26 PM #3
Rainmaker
4,799,006
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks, Wallace.  Excellent information which makes a lot of sense.  (I don't do property management, but you never know when this knowledge may be of use in the future)

Aug 24, 2013 10:20 PM #4
Rainmaker
421,509
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Wallace, 

Yes, these little items of time add up - get the need to charge!  Since we deal with a lot of international tenants on assignment, we don't get as many of these, as usually they are moving out of the US!

Had a funny situation this year though, where we were selling a home for a owner we had leased and property managed for three years.  The buyers were tenants of another property we leased and managed for a different owner.  Their rent was paid by the company, but it would be almost incestuous if we wrote a note saying they paid on time in one property we managed, so they could buy another home we were selling.   It worked out great BECAUSE we had a good relationship with all parties, but could have been very interesting.

All the best, Michelle

Aug 28, 2013 12:39 AM #5
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