BiggerPockets

When you know the person won't qualify based on what they told you (credit) and you explain the application/prescreening process explaining this will be an issue, but they want to go ahead and submit an application and pay application fee ("if it meant to happen it meant to happen" attitude) - what do you do? Run credit and send the rejection letter with explanation? Or try to discourage from applying?

I was just dealing with this. I've decided to state upfront my criteria for determining ability to pay:
Monthly income must be 3 times monthly rent -or- they must provide proof they are making equal or greater rental payments currently.

If someone wants to apply, you let them apply. That's the law. Just be sure you have a legitimate reason to deny the application.

I understand completely, but you can't discourage anyone from applying who wishes to do so.

Thanks all
Won't discourage anyone but advise on the application process and stress the fact that application fee is non-refundable
thanks

Regarding the non-refundable app. fee, be aware of the laws in your particular state:
In WI, for example, your are allowed to collect a max. of $20 per applicant (even if your real BG check costs are higher). And if you do charge a fee, you must give the tenant a copy of the credit report (I guess it is assumed that this is what the fee is for). Also, the tenant must be allowed to give his own recent report in lieu of the app fee.
That doesn't stop landlords from charging more than $20 or breaking the rules otherwise, though. Until they get dinged.

Alces

Also, the tenant must be allowed to give his own recent report in lieu of the app fee.

This is the second time I've seen someone post this about Wisconsin, yet this is not supported in the landlord tenant statute (Ch. 704). Any chance you could cite the statute that says this?
I can't imagine it's a general, or consumer law on granting credit. The idea of walking into a bank looking for a loan, and telling the loan officer that, no, I don't want you to run my credit, here's my credit report, is just not going to happen. Thanks.

Originally posted by Ralph S.

Originally posted by Alces

Also, the tenant must be allowed to give his own recent report in lieu of the app fee.

This is the second time I've seen someone post this about Wisconsin, yet this is not supported in the landlord tenant statute (Ch. 704). Any chance you could cite the statute that says this?
I can't imagine it's a general, or consumer law on granting credit. The idea of walking into a bank looking for a loan, and telling the loan officer that, no, I don't want you to run my credit, here's my credit report, is just not going to happen. Thanks.

I did a quick search, and did see this at the top of the Wisconsin Statutes & Annotations page (http://legis.wisconsin.gov/rsb/Statutes.html, in bold print no less: "...Searching by chapter titles for the desired subject matter is not a dependable method for finding all applicable law unless you know the book well, for the specific item you are looking for may not be in the chapter you select."

Late fees are regulated by statute, but tenant applications and leases are not. From Chapter 452 Wisconsin has a Real Estate Examining board... it is possible that this group or some similar group puts out a mandated fee schedule, or that there is some other Civil Procedure (801-847) statute that defines the fee limit.

Originally posted by Ralph S.

Alces

Also, the tenant must be allowed to give his own recent report in lieu of the app fee.

This is the second time I've seen someone post this about Wisconsin, yet this is not supported in the landlord tenant statute (Ch. 704). Any chance you could cite the statute that says this?

It's in ATCP Chapter 134.05, as you found out in the second post.
And you're right, the landlord does not have to use the tenant-provided report. But why would you go through the expense of obtaining another credit report if you have one? Provided you don't suspect it being fake or assumed something big in the last 30 days happened.
The notes even specifically state: " Paragraph (b) does not prohibit a landlord from obtaining a more current consumer credit check at the landlord's expense"
http://legis.wisconsin.gov/rsb/code/atcp/atcp134.pdf

Nevertheless, though not specifically mentioned in the statutes, but it is always interpreted that way (e.g. in training classes, maybe the earnest monoey rules play into this, etc.) you may not charge another application fee, even if you background check costs you $30, and then both employers of a couple require you to use that $@%$&**** Work Number, charging you another $15 per person, then you're out $90.

Treat everyone the same? Why? People are NOT all the same!!!

For example, I don't take felons - PERIOD! Therefore, if they tell me that they are a felon, I'm not meeting with them and they're not filling out an application. "Felon" is not a protected class and I'm not treating them the same as someone that is not a felon. Ditto for druggies. Ditto for anyone that has to hold their pants up with one hand or has tatts from head to toe.

Everyone the same? NOT HARDLY!