{"id":96535,"date":"2018-02-06T11:15:11","date_gmt":"2018-02-06T18:15:11","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=96535"},"modified":"2021-03-16T13:48:49","modified_gmt":"2021-03-16T19:48:49","slug":"legal-disclosures-application","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/legal-disclosures-application","title":{"rendered":"10 Legal Disclosures I Include in My Rental Applications"},"content":{"rendered":"

[Editor’s Note: The contents of this article do not constitute legal advice. Please be sure to check with a legal expert in your market before implementing these items into your documents.]<\/em><\/p>\n

To be successful in the business of landlording, you have to know that the person who you are entrusting with your investment is going to care for your property and help you prosper in this business, rather than assist you going down in flames.<\/p>\n

The legal part of the application is where the landlord covers their hiney and makes sure the applicant is fully aware of what happens with the information they supplied. To avoid any misunderstandings, I make sure my application includes the following information.<\/p>\n

10 Legal Disclosures I Include in My Rental Applications<\/h2>\n

1. The Applicant\u2019s Assurance<\/h3>\n

The applicant agrees that the information in their application is true and that an incomplete application or information discovered to be false is grounds for denial.<\/p>\n

What landlord wants a tenant who lies from the very beginning?<\/p>\n

\"limit-liability-landlords\"<\/p>\n

2. The Application Fee<\/h3>\n

This is where the applicant is told in writing that their application fee is non-refundable and will be used to cover the landlord\u2019s costs to verify the information they have listed on their application.
\n
\nRelated:<\/strong> How to Successfully (& Legally) Raise the Rent as a Landlord<\/a><\/em><\/p>\n

3. Permission to Contact<\/h3>\n

Here the applicant is made aware of who the landlord (or the landlord\u2019s representative\/agent) will be contacting to obtain information as to whether the applicant is a suitable candidate for tenancy. Really, the applicant simply gives the landlord permission to contact whomever they deem necessary.<\/p>\n

4. Liability<\/h3>\n

Make sure to include a clause that releases the landlord from any consequences that arise from screening the applicant.<\/p>\n

5. Extended Authorization<\/h3>\n

We like to include a line or two that the information supplied by the applicant on the application may be used at any time during their tenancy or after their tenancy has ended. The information on the application is especially helpful for collecting debts after a tenant has vacated.<\/p>\n

6. Consumer Report Information<\/h3>\n

If the landlord will be collecting a consumer report (for the background and credit check), the applicant must be given the name and address of the agency and told of their right to obtain a copy and dispute the accuracy of the report in the event of their denial.<\/p>\n

\"landlord-traits\"<\/p>\n

7. Holding Fee<\/h3>\n

If the tenant is approved, provide the terms of when the security deposit, also known at this point as the \u201cHolding Fee,\u201d or \u201cDeposit to Hold\u201d must be paid to guarantee their position.<\/p>\n

We allow our tenants 24 hours from the time of approval to supply the holding fee and also sign the Deposit to Hold Agreement, which states the specifics of how long the unit will be held for the\u00a0applicant, as well as the consequences should they fail to meet all of their obligations and perform by the given date. No tenancy is guaranteed to the applicant until they have been approved and have paid the holding fee.
\n
\nRelated:<\/strong> 6 Common Application & Screening Mistakes Property Managers Make<\/a><\/em><\/p>\n

8. Failure to Perform<\/h3>\n

Should the tenant fail to supply the holding fee for the rental within the specified time period (24 hours), the applicant is made aware that the rental will be made available to other applicants.<\/p>\n

9. Move-in Requirements<\/h3>\n

This is where the tenant is made aware of what will be required of them after they are approved and before they are given keys, such as paying all move-in funds, deposits, fees, transferring utilities, signing a lease, and so forth.<\/p>\n

10. Grounds for Denial<\/h3>\n

Finally, the applicant needs to be made aware that if they fail to meet the minimum standards for qualification due to information received from any sources or if they fail to perform during the application process, they will be denied.<\/p>\n

\"\"<\/a><\/p>\n

Do you have anything you’d add to this list? Do you include all of these items in your application?<\/em><\/p>\n

Comment below!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The legal part of the application is where the landlord covers their hiney and ensures the applicant is aware of what happens with the info they supplied.<\/p>\n","protected":false},"author":710,"featured_media":68111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[],"class_list":["post-96535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/96535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=96535"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/96535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/68111"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=96535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=96535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=96535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}