Three Things to Consider When Renting to a Trust Funder

Trust funders often have a lot of money in their trust funds. However, that doesn’t mean they’ll necessarily make good tenants. Here are three tips that you should consider before renting to an applicant whose primary income source is a trust fund.

How Much They Get Monthly from the Trust Fund

One thing to keep in mind about trust funds is that the applicant doesn’t always have access to all the money at once. They’ll usually receive monthly payouts. You’ll need to make sure these monthly payouts, plus any other sources of income, can cover your requirements.

Who’s Paying the Taxes

Taxes must be paid on those monthly payments. If the trust fund is responsible for the taxes, great! It doesn’t affect how much the trust funder receives each month. However, if the applicant is responsible for the taxes, it will be deducted from the monthly amount they receive. This reduces the net amount of income they’re receiving which could affect their ability to meet the income requirement.

Check the Trust Funder Applicant’s Rental History

Don’t be blinded by the money. Just because they may greatly exceed your income requirements doesn’t mean that they’ll automatically make good tenants. You should check all their rental history and their references.

If you still have questions about renting to a trust funder, you can consult a trust administration lawyer in Las Vegas.