Would you accept this offer?

[dreamgirl]

Hiya,

I've advertised a Granville granny flat on gumtree for the past 3 weeks and haven't had much luck. Fortunately, the tenant only moved out on Tuesday.

Yesterday, I had an offer from prospective tenant (newly weds) who doesn't have a rental history and owns a 'cash business.' If not for the fact that he offered to pay 6 months rent in advance, I would not even consider the application.

He called today and downgraded the offer to 3 months rent in advance. Apparently because his parents suggested it (not to part with too much money.)

I now feel that trust has been breached. He has gone back on his words and I would find it hard to believe him after what's happened.

I told him that I will have to reconsider my offer to let the property based on the issue of trust. I said that I will go ahead with the open home inspection that I had planned for this weekend and get back to him on Monday.

He has called back and reinstated his offer to pay 6 months in advance.

Would you still accept his offer after he's done a backflip?

Cheers,
dreamgirl

 

[MRO]

did you accept the offer before he changed it? If not then i think it is reasonable for him to change his mind.

 

[Propertunity]

Many of these tenants typically just want to set up a drug lab. 6 months rent upfront is cheap for them. Be careful!

Don't be lured by the cash upfront. If he's a regular tenant and breaks his lease you have to hand some of it back anyway.

 

[dreamgirl]

did you accept the offer before he changed it? If not then i think it is reasonable for him to change his mind.

Yes, I accepted his verbal offer yesterday.
We set up an appointment for this afternoon to sign the lease, but he reduced the offer to '3 months rent in advance' this morning.
So I cancelled and told him I'll get back to him on Monday.
Now he's saying the 6 month advance rent offer is back on the table, but I'm feeling iffy...

 

[dreamgirl]

Many of these tenants typically just want to set up a drug lab. 6 months rent upfront is cheap for them. Be careful!

Don't be lured by the cash upfront. If he's a regular tenant and breaks his lease you have to hand some of it back anyway.

Thanks for the warning!

 

[mattnz]

Agree on the basis of ongoing 3 months in advance (i.e. they start paying rent from day 1 to keep themselves 3 months ahead)

 

[dreamgirl]

Agree on the basis of ongoing 3 months in advance (i.e. they start paying rent from day 1 to keep themselves 3 months ahead)

He has already reinstated his offer of 6 months advance rent. But I'm not sure if I could have a working relationship with someone I can't trust.

On the other hand, it has been difficult finding a tenant...

 

[Elliotte]

I'd lower your price a bit and not give it too the dodgy guy with cash in advance. Cleaning up a drug lab would be a nightmare and I just bet they are into something bad. Even your own gut is telling you.

I can't believe you have an empty granny flat. They are the most wanted thing on gumtree so are you asking too much? Have you tried also responding to all the wanted ads - I fill up super quick doing that. A few hours of emails..even if it's not the right area...just something simple like, "Hey I see you are looking for a granny flat. I might not be in the area you asked for but have you considered Granville etc etc. "

 

[dreamgirl]

I'd lower your price a bit and not give it too the dodgy guy with cash in advance. Cleaning up a drug lab would be a nightmare and I just bet they are into something bad. Even your own gut is telling you.

I can't believe you have an empty granny flat. They are the most wanted thing on gumtree so are you asking too much? Have you tried also responding to all the wanted ads - I fill up super quick doing that. A few hours of emails..even if it's not the right area...just something simple like, "Hey I see you are looking for a granny flat. I might not be in the area you asked for but have you considered Granville etc etc. "

Thanks for the suggestion...
Maybe I am asking too much.
It's only been vacant for 2 days, but has been advertised for 3 weeks.

 

[MRO]

Just take his cash and let him have it. Probably realised he made a too good offer when you accepted it on the spot then had 'buyers remorse'. Probably inexperienced when it comes to buying/selling/negotiating and with a bit of family pressure felt the need to try and renegotiate the deal. Not the right thing to do but big deal.

Meth lab should be picked up after the first inspection after one month that you can now add to his contract.

I have had nothing but good experiences from tenants who pay upfront and my offset account likes it too!

 

[Jake D]

Didn't you say it was newly-weds?

I'd be inclined to give them the benefit of the doubt. They've probably been to a million opens and been knocked back a bunch of times becuase they don't have rental history.

They thought "Why don't we offer extra rent, or lots up front?"

Then they get all excited and go tell their folks they've found a place. "Yeah, the market is tough, we had to pay 6 months up front, but we've finally found a place"

"No, son. Don't let them have that much money, landlords are evil and will kick you out and keep it"

"Oh"

...

"How about 3 months up front...?"

...

"Oh what filthy lying dishonest tenants!"

 

[HiEquity]

You did a deal. They then asked about changing the deal and you said no. But they are happy to still honour the original deal - IMO so should you be.

Next time though, before doing the deal you might want to make further enquiries into what a "cash business" means. How do they make the money they propose to pay you in rent? It's a legitimate question just like proof of employment. If they don't have an employer, surely they would have some clients for you to contact who could vouch for the legitimacy of the business. If not, then there should be more than enough alarm bells going off for you to move on. Maybe they are both escorts and propose to use the premises to run their business?

But you did a deal. Trying to squirm out of commitments is one of the great problems in our society. Take responsibility for your decisions and keep a close eye on the property.

 

[travelbug]

I agree with Jake. I think you are being harsh labelling them as untrustworthy.

If they pass the eyeball test and have paperwork to support their application, i'd go for it.
When I advertisd my granny flat I had LOTS of Emails and phone calls. Some I vetoed straight away. Quite a few new to Australia or new to renting (young couples) which I was willing to consider. But ended up getting a lovely newlywed couple.

Good luck.

 

[dreamgirl]

Just take his cash and let him have it. Probably realised he made a too good offer when you accepted it on the spot then had 'buyers remorse'. Probably inexperienced when it comes to buying/selling/negotiating and with a bit of family pressure felt the need to try and renegotiate the deal. Not the right thing to do but big deal.

Meth lab should be picked up after the first inspection after one month that you can now add to his contract.

I have had nothing but good experiences from tenants who pay upfront and my offset account likes it too!

Thanks, MRO. And yes, the 10K would do very well in my LOC. That's why I thought I'd put it to you guys. Maybe I'm being too careful!

 

[dreamgirl]

Didn't you say it was newly-weds?

I'd be inclined to give them the benefit of the doubt. They've probably been to a million opens and been knocked back a bunch of times becuase they don't have rental history.

That's why I agreed to give them a chance.
Besides, I've rented a couple of properties to people new to the country and hence, no rental history and they haven't disappointed me. Always pay rent on time.

 

[dreamgirl]

Next time though, before doing the deal you might want to make further enquiries into what a "cash business" means. How do they make the money they propose to pay you in rent? It's a legitimate question just like proof of employment. If they don't have an employer, surely they would have some clients for you to contact who could vouch for the legitimacy of the business. If not, then there should be more than enough alarm bells going off for you to move on. Maybe they are both escorts and propose to use the premises to run their business?

Thanks HiEquity.
He runs a 'mixed store' business and she has provided payslips.
They're both very keen, so I'm still considering it.
I just don't want to make a hasty decision.

 

[dreamgirl]

I agree with Jake. I think you are being harsh labelling them as untrustworthy.

If they pass the eyeball test and have paperwork to support their application, i'd go for it.
When I advertisd my granny flat I had LOTS of Emails and phone calls. Some I vetoed straight away. Quite a few new to Australia or new to renting (young couples) which I was willing to consider. But ended up getting a lovely newlywed couple.

Good luck.

Thanks, Travelbug.
Much appreciate your comments guys!!

 

[ipinvestor]

Give them a chance

We moved to Australia in 2008, we did not have rental history. We did not even have job but we had money to pay 6 months rent. We explained to R.E. Agent and offered 6 months advance rent. Landlord accepted our offer, we lived in the property and bought a house and moved in our house.
Newly-wed couple deserve a chance like new emigrants.
my 2Cents

 

[dreamgirl]

We moved to Australia in 2008, we did not have rental history. We did not even have job but we had money to pay 6 months rent. We explained to R.E. Agent and offered 6 months advance rent. Landlord accepted our offer, we lived in the property and bought a house and moved in our house.
Newly-wed couple deserve a chance like new emigrants.
my 2Cents

Thank you ipinvestor.
I'm all for giving people a chance. I was once new to this country as well.
Also competed with other tenants in the rental market.
I guess I'm just over-cautious being a self-managing investor, but after hearing from you guys I'm still considering them for the property.

 

[DaveM]

Maybe contact one of the forum members who are agents and see if they can run a tica search on them, just to be sure