Investor · Carbondale, IL · Member since 2009 · 95 posts · 31 votes
When you select a tenant, does everyone notify all of the other applicants that they are being rejected? Or do you tell applicants when they apply, that you will only notify them if they are approved?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
There are a few different categories of "prospective tenants" that do not get the unit.
First are the tire kickers - they will take an application and never fill it out; you might see or hear from them later even, but they don't ever get to the point of completing the paperwork.
Next are the unqualified. I present the qualification criteria in writing so that they can all make their own determination of whether they have a chance of qualifying. Sort of like tire kickers, but these are ones who really want the place, but won't qualify; they still want to take an application, and they even sometimes complete that application. I review the applications when they are completed. If the income does not come to a high enough number, I return the application on the spot.
Next are the ones who at first glance have a chance of qualifying. They give you an application, and from the info on it it looks like they could meet all qualifying criteria. But upon further investigation (screening), they have prior evictions, convictions, judgments, unverifiable income, etc. So for whatever reason these are rejected, and I will send them a denial letter that conforms with Fair Credit Reporting Act.
Next are the ones who were in line behind another application, and that other application is the one you ended up approving and accepted as the new tenant. So these applications are all not processed in any way, and are returned to the applicants, with no determination one way or another as to whether they were acceptable / qualified. Along with a brief note explaining that another earlier applicant was qualified and accepted.
Did I miss any group? If so, please post below ...
Real Estate Investor · Loveland, CO · Member since 2012 · 23 posts · 0 votes
13y
I may not be like most... and I only have 2 rentals, but I try to set up all the showings at about the same time and gather the applications along with the application fees. I look over the applications later and if they have no shot of being my tenant based on what they've filled out, I will call them and give them their app fee back. From the reactions I've gotten, that's not the norm. So answering your question... yes, I let them know.
Real Estate Investor · Austin, TX · Member since 2011 · 271 posts · 106 votes
13y
It depends upon state law. As for me I have a boiler plate letter that the law requires me to use in the event that I reject a tenant in whole or in part because of credit issues. Just to CYA I put it in writing for any tenant that gets rejected. The dept. of consumer affairs (or the like) in your state should have something you can cut and paste into a letter for rejected tenants.
If you tell your prospective tenants up front your leasing criteria this should limit the showings and applications from unqualified tenants. I have fallen into the "wishful thinking" mentality of not telling the criteria up front and most of the time I waste my time with someone who would never meet my criteria.
Landlord · Dallas, TX · Member since 2011 · 63 posts · 7 votes
13y
I do. It seems like the right thing to do. I'm always very clear as to what my qualifications are. Most people will know if they don't meet them drop off the radar as soon as hearing them. The company I use to do my screenings provides a recommendation based on the reports I pull and provides a letter with all of their contact info and gives the applicant the option of requesting the report. Since the letter is coming directly from the screening service i usually just email it out.
Investor · Milford, CT · Member since 2012 · 592 posts · 285 votes
13y
Only a few times I get repeated "unqualified" tenants calling me over and over. Usually I keep it by the book and indicate that they didn't qualify due to income, credit, etc...
I never call them to tell them they did not qualify. Just too much of a pain and my time is best served filling in a vacancy.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
There are a few different categories of "prospective tenants" that do not get the unit.
First are the tire kickers - they will take an application and never fill it out; you might see or hear from them later even, but they don't ever get to the point of completing the paperwork.
Next are the unqualified. I present the qualification criteria in writing so that they can all make their own determination of whether they have a chance of qualifying. Sort of like tire kickers, but these are ones who really want the place, but won't qualify; they still want to take an application, and they even sometimes complete that application. I review the applications when they are completed. If the income does not come to a high enough number, I return the application on the spot.
Next are the ones who at first glance have a chance of qualifying. They give you an application, and from the info on it it looks like they could meet all qualifying criteria. But upon further investigation (screening), they have prior evictions, convictions, judgments, unverifiable income, etc. So for whatever reason these are rejected, and I will send them a denial letter that conforms with Fair Credit Reporting Act.
Next are the ones who were in line behind another application, and that other application is the one you ended up approving and accepted as the new tenant. So these applications are all not processed in any way, and are returned to the applicants, with no determination one way or another as to whether they were acceptable / qualified. Along with a brief note explaining that another earlier applicant was qualified and accepted.
Did I miss any group? If so, please post below ...
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
Originally posted by Steve Babiak:
Next are the ones who were in line behind another application, and that other application is the one you ended up approving and accepted as the new tenant. So these applications are all not processed in any way, and are returned to the applicants, with no determination one way or another as to whether they were acceptable / qualified. Along with a brief note explaining that another earlier applicant was qualified and accepted.
Do you mail these to them? What about there application fee? Do you send this to them also? If so, I'm guessing they gave you cash. Do you mail them a check?
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
We no longer attempt to notify. It seemed like the right thing to do once upon a time but it became very burdensome. If people ask, we will let them know what's going on but I don't sit down and call everyone.
Lender · Los Angeles, CA · Member since 2012 · 147 posts · 76 votes
13y
Having once been stung by a Fair Housing complaint, I feel that every application, and my relationship with the applicant is important to me, for one of two reasons:
1) They are either the person I will rent to (important)
OR
2) They are potential complaint filer for some type of discrimination claim. (wrong or right, anyone can file - and you have to deal with it)
AND (ok, really 3 reasons)
3) You NEVER know who that applicant may turn out to be, now, later or sometime down the line. I live in the greater Los Angeles area with over 8,000,000 (who have been counted) people.
You never know who will call again a year later, when their circumstances have changed and you need a tenant, or who might be impressed with how you treated them and when their friend (who is really qualified) asks them, they give you a good word. I just love to take an extra few minutes and give these poor guys and gals a courtesy call. Guess if I get too important and too busy to do that, it's no good.
So, I personally call all "rejects" and usually tell them that I had several good applications, and had to decide on one of them.
I also don't collect money up front, as I prefer to weed through things a little before taking money from people.
Ok, that's one salty old (37 years of rentals) landlord's opinion. That and $1.95 will get you a grande coffee at S-bucks. mmmmm
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
Originally posted by Rob K:
Originally posted by Steve Babiak:
Next are the ones who were in line behind another application, and that other application is the one you ended up approving and accepted as the new tenant. So these applications are all not processed in any way, and are returned to the applicants, with no determination one way or another as to whether they were acceptable / qualified. Along with a brief note explaining that another earlier applicant was qualified and accepted.
Do you mail these to them? What about there application fee? Do you send this to them also? If so, I'm guessing they gave you cash. Do you mail them a check?
Just curious how you handle this.
Rob K - Good question. The most recent one was returned in person, since that person wanted EVERYTHING back (application, and other forms); I made that person sign a receipt form for CYA purposes because i did give them cash back. Previous to that I did send a check via USPS. I contact the applicant by phone first to see what they want - I don't want them coming back at me for anything. I don't have this situation occur too frequently, since most applications are rejected for good reasons (as I posted above); and when I let somebody know that I'm processing an application already (but still showing until all screening comes back as acceptable) they don't usually fill anything out - but they will check back by phone to see if it's still available.
Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
13y
Steve Babiak summed it up very nicely I think.
I would just like to emphasize that I feel it is important to let every applicant know what is going on and refund application deposits whenever possible. Karma?
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
Robert Steele - you make a valid point. We may be a bit more laid back because 1) we don't take application fees and 2) we tell everyone exactly what's going to happen. We're gonna look at applications, and before we process yours we WILL call you within 24 hours. So in essence, unless I call them, they know they didn't make the cut. However... it is a service business and it wouldn't actually kill me to make a half-dozen phone calls.
Chicago, IL · Member since 2012 · 93 posts · 12 votes
13y
I have 3 buckets. (I don’t charge an ap fee)
Application being processed = those who qualify but my gut feeling is telling me they will be a problem. They filled out the ap, all the info is there ..but I do not like them so I stall …when they call I say…I am still processing an application I need more time. Now go ahead and sue me for discrimination. they usually find out later that the place rented out already.
application that cannot be processed (incomplete) = deadbeats who cant put all the info necessary for me to process. When they call I say …fill out all the information. 90% of them never does..
applications approved = those who check out and who I like
Residential Real Estate Broker · Oklahoma City, OK · Member since 2011 · 114 posts · 38 votes
13y
I like to advertise my houses on craigslist and make everyone contact me by email. This filters out anyone who doesn't have an email account and internet access. Communicating electronically saves me time and keeps a record of all of my correspondence with tenants and potential tenants. Also, the applicants who are on the ball can send me their information electronically, so I can often approve a good tenant before I even have to look at any of the bad applications. Finally, when I do need to reject someone, I do it by email and avoid a phone conversation.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
Steve Babiak I just rejected an applicant, but didn't run her credit report. I found out other information about her that caused me to reject her. The denial letter that I have says this:
"The decision by XXXXXXXXXXX to not accept your application under our standard lease terms was based in part on information contained in a consumer credit report obtained from TransUnion and/or aspects of your application that do not meet our requirements under our standard lease terms"
Do you still send a similar form if the credit report was not obtained, or do you have something else that doesn't contain all of this credit language?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
Rob K - My form letter has some checkboxes. One of which is the consumer credit explanation that you summarized. And I have one that is "Other"; I would probably have that box checked and a sentence or two to explain. See this link for something very similar to what I use; just add an "Other" check box to the sample they give:
Newark, DE · Member since 2013 · 2 posts · 0 votes
13y
Hi Everyone
I'm new to BP so I hope it's ok to jump in and ask a related question here. I own 3 rental townhomes and my primary. I recently received an application with no fee via fax. If there are no reasons to decline based on the info indicated and a google search on the applicants I would request the fee for the background and credit check, and then order the report. I do it this way to help save the fee for the prospective tenant
It turns out that one applicant has a prior eviction and the co-applicant has prior judgments. There were also blanks on the application and some inconsistencies on the info received.
I advised one applicant on the phone that I was unable to move forward with his application. He said he understands. But I received a call from the co-applicant later that afternoon demanding a denial letter in writing. (Along with my policies)
Am I required to issue a denial letter in writing under the fair housing rules or fair credit rules? I was planning to make record of reason in my file just keep all of the support in my file.
Thank you in advance.
Alex