Dave Says

Finding responsible renters
Dear Dave,
I’m a landlord, and I own a few houses and duplexes around town. Recently, I made the mistake of renting to some tenants who were not respectful of my property. Do you have any tips for selecting good renters?
Joe

Dear Joe,
In my experience, most landlords simply aren’t thorough enough with the screening process when it comes to potential tenants. It’s difficult to get to know someone—especially in this kind of situation—without spending some face-to-face time with them and digging into their backgrounds a little.
I have several rental properties, so here are a few tips that have served me well over the years. Always require a big deposit up front. In addition, pull a credit bureau report on prospective renters. I also drive by the place they’re currently living to see how they take care of things. To me, this is a great indication of how responsible they are, and how they might treat my property. Finally, get proof they’ve regularly made past rental payments on time.
It’s a leap of faith, to an extent, any time you sign an agreement with a new tenant. But there are things you can do to make a more informed decision as to whom you’re doing business with.
—Dave
 
Don’t allow them to break the rules
Dear Dave,
A debt collector has been calling members of my family for the last two weeks to get information on me. He identified himself as collector, and I want to pay what I owe, but is it legal for him to do this?
Kerry

Dear Kerry,
No, it isn’t legal. If he identified himself in any way as a debt collector, and spoke with anyone but you about your debt, he broke the law. This is a violation of the Federal Fair Debt Collection Practices Act. You need to file a complaint with the Federal Trade Commission (FTC) against this collector and his company.
Record the conversation the next time they call. Tell them at the beginning you’ll be taping any interaction you have with them from that point forward, and ask your relatives to do the same. That way, you’ll have proof to hand over to the FTC or the attorney general.
There’s nothing wrong with collecting a debt. If you’re a collector or creditor, it’s money that is legally owed to you. Still, you must do it within the confines of the law.
—Dave

A burden to help?
Dear Dave,
Do you believe the adult child of a senior citizen, who is physically and mentally healthy but has neglected to plan for retirement, should be burdened with providing financial assistance to that parent?
Robbie

Dear Robbie,
Based on the wording in your question, I can only believe you don’t think the adult child should be “burdened” to provide this assistance. My guess is you’re talking about one of your own parents. I understand that you might be aggravated with a parent who has been irresponsible with their money. But in my mind, there’s a bigger question. How big is the burden?
I talked to a guy recently who was making $1.5 million a year. He was questioning whether he should help his dad — an older man in poor health, who didn’t handle his money well — by giving him $1,000 a month. There’s no question you give that guy money. You’re making millions, but you don’t want to help your sick dad? Come on! But if you bring home $2,000 a month, and your family is barely getting by, you’re not morally required to financially take care of a parent who was irresponsible with their money.
It’s all relative. Do you have the money? Can you provide this help without placing an undue burden on yourself and your family? If the answer is yes, you may be asking more about your own aggravation than any sort of moral obligation.
But no, you’re not morally obligated to destroy your own life, or your family, to take care of a relative who didn’t take care of themselves financially.
—Dave  
 
Separate emergency fund?
Dear Dave,
I’ve going to be debt-free with a full emergency fund in pace by the end of the year. I’m going to get a dog after that, but I wanted to make sure I did it the right way and was in good financial shape before making that move. Is a separate emergency fund for pets a good idea?
Scott
Dear Scott,
My wife and I love animals. We’ve had a least one dog the whole time we’ve been married. Still, I think a full emergency fund of three to six months of expenses will cover you and your pet.
You go through some expense as a pet owner, along with happy, wonderful times and heartbreaking things, too. We lost our golden retriever recently, and I can tell you that was really hard on everyone. You love them like they’re family, but you still have to use common sense sometimes, and remember that they’re animals and not human beings. Part of that includes spending reasonable amounts of money on them—and in some unfortunate cases—doing things with the animal’s best interest, not our own desires, in mind.
What is a reasonable amount? That depends on how stable you are financially. It’s really a ratio question of expense to means. But no, I wouldn’t recommend a second emergency fund just for pets.
—Dave
* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.