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Landlords why don't you ask me about your tenants?  I am always curious why landlords don't check references.  I always call the previous landlord and the one before that, when screening tenants for a rental property.  I am curious as to the reason the tenant's are moving, what rent they are paying, how long they've been there and if there have been any issues with pets (they apply saying no pets often and then Fido pops up when they've moved in) or neighborhood complaints.

Why do I ask, well mainly most people are honest and tell the truth but there are some that will stretch the truth and some that will really SSTTRREETTCCHH the truth.  SO actually I am verifying their story.  Remember my recent post about how people treat their credit and how that can determine whether they get into another rental or not?  http://activerain.com/blogsview/1415172/choosing-a-tenant-do-you-view-your-credit-with-contempt-or-respect-  Well there is often a theme and those who are fudging are often uncovered when references are checked, particularly past landlords. 

What do I say to the past landlord?  I appeal to the fact that if they called me for a reference I would give them a very truthful reference, even if I wanted that tenant gone...because I would feel obliged to let anyone know the type of issues we've had with a particular tenant if we have.  And I would hope for the same from them, landlords, property managers need to stick together and be honest with each other about their experiences. 

In general, all of our tenants are good, hardworking people who pay their rent ontime.  But that occasional person(s)...for example:  The landlord who took the 3 people who stiffed the 4th roommate and just disappeared on a week's notice, never called for a reference.  What would I have said?  They were chronicly late, we had problems with cars and they did not keep up the yards.  Would I want to know that when I rent?  YES.  Why didn't you (the new landlord or property manager) want to know that?  You will likely end up having the same issue months from now?  Aren't you wondering why they moved on a weekend before Christmas?  They didn't have a reference when they came to me, they were living with their parents...I've had tenants before that were living at home to save money and were very responsible people.  Sometimes it just doesn't work out.

Some tenant want a "fresh" start. They have a pastor, teacher or other references.  They move in and when they have something come up, the excuses are incredible!!! These are all true and too real to make up.

"My son is in jail and I have to bail him out",

"We are getting married and need the money for the wedding."

"My motorcycle crashed and I need to get it fixed."

"I had to take a trip and don't have any money left."

""My roommates just moved out without any notice and I don't have the money."

One tenant used to have a chronic health issue and every month it was something, he was borrowing from friends, family, coworkers (apparently) and had surgery again and again.  His mother died (how many times?), etc.  Then I would be out and about and see him around town walking around just fine.  Oh MY. The landlord didn't call for a reference when he moved either owing about $3000 in back rent!!! 

What they are thinking is that the landlord is such a good person that he'll not mind a late charge and credit ding because you went on a trip.  That's right, they'll feel they should help you get your son out of jail.  NOT.  The landlord is not your parent.  They don't feel it necessary to fund your wedding or trips.  Responsible behavior would dictate that you never even ask.  You know your responsibility and you do what is expected. 

I guess the point is that if we property managers, landlords understand that the landlord or property manager calling us could be us and we just want the "facts mam", we would tell them what they needed to know.  IF they took the tenant anyway, well then they knew what they were getting and could perhaps mitigage some future problems with clauses in the lease.  BUT to consider it "buyer beware" just seems unethical to me.  DO UNTO OTHERS.  And I could save you some angst if you called and asked before you say yes to that tenant.  You'd know you are getting one of the best tenants we've ever had or a chronic blamer, late payer or deadbeat.  It's all just a phone call away. 

Do you view your credit with contempt or respect?

This economy has taken it's toll... It's an interesting time.  Years ago, a poor credit score, a bankruptcy or foreclosure made it virtually impossible to  find a place to rent.  These days a short sale, foreclosure and/or bankruptcy are common place as are low credit scores.  People in those positions do need quality rental housing.

As a Realtor who manages rental properties for clients we analyze the credit scores, bankruptcy, short sale and foreclosure issues with an open mind.   After all, bad things happen to good people.  It's what they do with that adversity that makes the difference, the Credit report tells the story.

Simply put the credit before the "bad" thing and after the "bad" thing tell the story.  Have you had responsible credit history and a timeline when a job loss or health issue happened with a period of late payments, collections, etc?  That is a story of a responsible person that had a hard time and for a period lapsed and the credit before and after the event is exemplary.  I always ask prospective tenants if they have anything to explain to me so that they might have the opportunity to explain whatever I might find when I run the credit report.  Many will tell me their stories before I have to find out, taking responsibility and tell how they plan to handle it in the future.  After all the landlord's major worry, and my responsibility is, to assist them in finding the right tenant who will take care of their property as well as pay the rent so that they can keep up with their mortgage and taxes and keep their own credit clean. 

Contempt, blame and it's always something being done to me, we stay away from those tenants.  Those who blame the current economy but have a credit history of late payments and collections before and after "bad" things that may have happened, now that's another story.  Curious to me are people who default on their student loans and utilities, phone, and minor bills.  The justification that allows people to default on these type things change how I view that prospect.  If you won't pay your utilities, will you pay your rent?  I'm not sure.  If you can't or won't pay a student loan (generally very low monthly payments tailored to your situation) what happens with our rent?  If you won't pay the small dentist or doctor bills, when they were there for you when you needed them, will you pay the rent when the landlord needs to pay their mortgage?  I've seen a collection account for less than $200, $100 or even $25... what makes that ok?  Most medical and dental bills can be paid in small increments if needed.

Last and most absurd are the prospects who, when asked why they are moving, tell you how horrible their landlord is and all the stories about the awful property they are living in.  I stay VERY far away from those tenants.  Investigate of course, but generally stay away from the "blame person".

How you view your credit, with contempt or respect, makes a difference and it shows on your credit report. 

Composting 101 - What NOT to put into a compost bin.

A double sided brochure sponsored by the University of Minnesota teaches in a nutshell about why to compost - because 30% of organic waste is cluttering our landfills.  Because landfills are cluttered with other non compostable products, the organic waste gets trapped and does not compost but often turns into methane gases.  The same organics in a compost system can turn into fresh, rich amendment to garden and soil in your yard, save landfill space, eliminate some of the methane gas pollution in the landfill. 

It is easier than you think to start composting. The brochure also talks about what NOT to put into a compost system.  The most common No-No's are - Do NOT compost

• Coal & coke ash
• Cooked food
• Meat
• Fish
• Cat litter
• Dog faeces
• Disposable nappies (diapers)
• tobacco

Some would say they can be composted in a careful and premeditated way, as a rule though you will have fewer insect and pest problems in your bins by eliminating these items.

In addition Peony leaves should be put into the trash rather than composted.  They harbor fungai diseases that can infect other plants when the compost is ultimately spread.  Other NO-NO's would be poison ivy, sumac, oak, oleanders, and anything, including tomatoes and peach tree curl leaves that have diseases or insects that may not be killed while composting.  .  Some would also say you can compost those as well, but for my money, why take a chance. 

For the complete Q&A and composting 101 brochure including how to successfully start composting and what NOT to do, click http://blog.lib.umn.edu/mgweb/sherburne/composting_broch.pdfn

How to build a compost bin for $100 or less...It's easier than you think.  For specific instructions Reproduced by permission of the Seattle Engineering Department's Solid Waste Utility and the Seattle Tilth Association, Seattle, WA.  Click on this link 

http://www4.uwm.edu//shwec/publications/cabinet/factsheets/WoodandWireCompostBin.pdf

The HAMP loan is finally taking off...(Home Affordable Modification Plan) US Department of Treasury, Office of the Comptroller of the Currency (OCC) www.occ.gov reported that Loan modifications rise 69 percent in third quarter. 

Apparently there were more than 680,000 home loan modifications and payment plans in the third quarter of 2009, a 69 percent increase over with the second quarter.  This is really good news.  In addition the report states in part that servicers provided close to 274,000 trial modification plans under the  "Home Affordable Modification Program" (HAMP) during the third quarter.  I remember recently seeing reports that some lenders had only done 80 or 90 modifications over the last 9 months...these new numbers are encouraging.

Even better news is that servicers provided almost twice as many home retention actions as new foreclosures instituted.  We may be rounding a corner or find we're getting closer to the end of the tunnel.  We'll see as 2010 approaches what it all means, but more modifications will affect that foreclosure doom and gloom so often quoted and reduce those numbers.  How much no one knows at this point but one can hope this is a step in the right direction.

The component of the HAMP plan that will assist homeowners in keeping their homes is found in the final statistic that 80 percent of the loan modifications in the third quarter reduced monthly principal and interest payments.  

Dan Harris who wrote the book "How to Modify your Mortgage" http://www.loanmodbook.com/ explains how to best handle a loan modification request to the lender by saying "First get educated QUICKLY, learn everything you can about the HAMP guidelines and what your lender offers in the way of assistance. Plan your request for assistance and be organized and prepared BEFORE you submit anything to your lender. Remember the disclaimer they read you when you call? It's the one where they tell you they are required by law to advise you they are attempting to collect a debt and anything you tell them will be used for that purpose. No matter how nice the representative sounds, they work for the lender and they are there to help collect your payments." 

                                                                                                                                                Good points Dan...you should go to your lender website, there is generally a place where is says loan modifications or "having trouble making payments?"...follow that link and get the financial and other requirements for submitting a modification.  Most often there will be forms you can download to use for this purpose.  This will tell you the banks requirements for the loan modification.  Then when you do call, keep a log of who you talked to, date and time, what questions did you asked and the answers given.  There is likely to be a different person every time you call so keeping good records is important for continuity of your next call.  And do as Dan says and Don't tell them anything you don't want them to know.  Stick to the facts, of course explain your hardship and situation, but don't embellish.  Writing it out ahead of time helps to keep you from rambling.  And don't be embarrassed.  You are not the only person they've talked to and it is much more matter of fact to them than you know.  That alone allows you to handle this more like a business call and makes it less personal.  You are negotiating on your behalf.

Lastly, your Realtor can be a resource. They talk to clients in various stages of modification, short sale and foreclosure and have some insight into the different lenders and a reference point for the process.  They may not know all the answers but they know how to help you find resources.  This is what we do...assist our clients in all kinds of markets.  Most of us are not just there for the good times, but any time you need real estate counsel.