Leasing Property Pitfalls!

Over the past several months I have been assisting clients lease properties. I have noticed disturbing trends and several issues to make you STOP and rethink what your getting into.

Normally an Agent will submit the prospective tenants rental application and any processing fees to the Listing Agent and or Broker for review and consideration. Typically that application is submitted to the Owner for review and a credit report is obtained and or a criminal background check. Usually this process takes a couple of days. Once that information is obtained and references are checked, the Owner will instruct the listing agent and or broker to offer the following terms and conditions. For instance, Deposit amount, Pet Deposit amount, First Months rent and so on. Typically these items are set and spelled out in MLS as minimum guidelines. Depending on the prospective tenants credit data and application data, the owner may request a higher deposit or a higher pet deposit based on breed and weight.

Lately, I have had Brokers request a Full Months Deposit upfront before considering the application. In addition, when I ask if the deposit is refundable the answer I get is yes within 15 days. WHAT? and NO! There are several Hold and Deposit forms that can be used that are provided by the Texas Association of Realtors and TREC. Why in the world would a prospective tenant scramble to submit a full months rent as deposit and tie them to that property while looking for properties to rent. DO NOT EVER give a deposit to an owner or a Broker without having the Deposit refundable prior to a lease execution.

In addition, I have asked several brokers to have the owner provide a current mortgage statement showing payments on the rental property have been made and the owner is not in jeopardy of foreclosure. Many owners and Brokers refuse. If you get a refusal on this do not proceed. Chances are you will get moved into the lease property only to be evicted from the courts as there is a pending foreclosure and the owner has gotten your rent and deposits and not made the mortgage payments.

Always get everything in writing and contact a Realtor for representation before entering the leasing market.

Syndicated Listings in Dallas.

My Syndicated Site, www.GayDallashomes.com

Tax Credit Deadline

The time to take advantage of this program for what we know today is short. To qualify for the credit you must close before 12/1 and considering 11/30 is the Monday after a Holiday Thanksgiving, coupled with the new Truth in Lending disclosure requirements, I’m advising customers to try to close by 11/16. I’d hate to feel the repercussions of not meeting the 11/30 closing date and the buyer not being able to collect the $8,000.00. Best practice is better safe than sorry. With this said, 11/16 is fast approaching. Buyers need to know this if they plan on taking advantage of it. Two misconceptions about this credit are: You do not have to be a first time homebuyer, you just cannot have owned a property in the last 3 years. And, you can make more than the income limits of $75,000 individual and $150,000/jointly, the credit is just less than a full $8,000. Call me for more details.

Add to this that the state of Texas currently has $4.2 million available for down payment assistance loans. I would anticipate a rush for these funds as the credit deadline nears. They are on a first come first serve basis and cannot be reserved until a contract is executed and appraisal completed. (Call me about the details on this program. It’s really easy and not complicated like a bond program.) Borrower can get an advance in the amount of 5% of the sales price or $7,000 which ever is less.