If a tenant has a good past rental history should you take payment from a tenant in cryptocurrency is this week’s question for veteran landlord, property manager and real estate investor Hank Rossi.
Dear Landlord Hank:
I recently had an interested party apply for a rental, and this individual said he was the owner of a company that dealt in cryptocurrency. Cryptocurrency was the source of his income as well, and most of his assets were cryptocurrency. He has a good rental history for units that are comparable to mine, in price. What do you think?
– Landlord Steve
Dear Landlord Steve,
Rental history that is recent is a great barometer of how an individual will perform in your rental BUT there are many other things to consider and a big one is the tenant’s financial picture.
A prospective tenant income needs to be sound and have some duration and stability. Right now, bitcoin and block chain are not well recognized and accepted by the population at large.
Ask to see his tax returns
I would ask for this applicant’s last two tax returns.
Uncle Sam doesn’t recognize cryptocurrency right now and neither should you.
This person is asking you to turn over your large asset and you want to be absolutely sure you are going to be paid your rent in a currency you can use to pay your bills.
If his last two tax returns are acceptable, I would spend some time on the phone with his rental references, to make sure this is someone you want as a tenant.
Sincerely,
Hank Rossi
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