Tenant Screening Report

Applicant's own explanation: "Before getting the job at PG&E (over 5 years ago), I was out of work for over a year, and credit card debt accumulated. I filed for bankruptcy over a year ago and am on a payment plan of $610 per month. I need to move from my present 1bd/1bth ADU because my elderly mother will be moving in with me. Her social security payment will supplement my income in terms of the rent."

Impact if confirmed deceased: Without Michele's $1,469/mo, Tom's rent-to-gross rises from 26.6% → 30.1% (borderline) and rent-to-net rises from 41% → ~49.8% (very strained). After rent ($3,400) and known monthly obligations (~$3,088), Tom would have only ~$338/mo for food, gas, and all other expenses. The 3-bedroom ADU also becomes difficult to justify for a single person with a dog. He should be asked to explain his current situation and whether he still needs/wants a 3BR.

3x Rent Rule: $3,400 × 3 = $10,200/mo gross required. Tom alone at $11,307 passes. Combined at $12,776 passes comfortably on paper. The concern is not gross income — it's cash management. His take-home after taxes is ~$6,826/mo, and after known obligations (~$5,878) only ~$948 remains for food, discretionary, and savings before mom's contribution. His April bank statement shows he regularly drew $2,834 from savings to cover his checking account.

Key Observation: Tom received $6,468 in PGE payroll + drew $2,834 from savings and still ended the month with only $295. His total outflows exceeded total inflows by about $1,900. He spent ~$681 on golf alone in one month while in an active Chapter 13 bankruptcy. This pattern of overspending despite high income is the central behavioral concern.

What Chapter 13 means for you as a landlord: Unlike Chapter 7 (full discharge), Chapter 13 is a 3–5 year court-supervised repayment plan. Tom must pay creditors monthly. Courts generally allow tenants to keep paying rent (it's necessary housing). However: (1) if Tom defaults on his plan, the bankruptcy could convert to Ch. 7 or be dismissed — meaning all protections lift and creditors could garnish wages; (2) wage garnishment could reduce his take-home significantly; (3) the active bankruptcy means his financial situation is legally complex and monitored. Tom filed April 2025 — he has roughly 3–4 more years of plan payments remaining.

Name spelling note: Facebook shows "Koopman" (double 'o') while the application and LinkedIn both use "Kopman" (single 'o'). This is likely a casual/alternate spelling the same person uses on social media — San Jose location and PGE employment align perfectly. However, the Abraham Lincoln High School Class of 1982 is worth noting: if born October 1967 (per application), he would have graduated ~1985, not 1982. Either the Facebook info is slightly inaccurate, or there is a minor age discrepancy worth clarifying.