Wildly Different Rent Estimates
Member since 2024 · 3 posts · 3 votes
Wildly Different Rent Estimates
Most Popular Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votesRentometer is likely to be the closest, but it depends on what condition your rental is in. If it's vanilla and your rental absorption is high, push to the bottom of the range and vice versa. No matter what you are pricing, a rental or a sale, you never want to price high and adjust it down because then people think something is wrong with it. Price at value and make sure you are presenting your rental in the best way. If you are listing it yourself with iPhone photos, that's not the best way.
26 Replies
- 2yBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 712 votes
On Zillow you can look at rentals in the area. Look at the high end rentals in the area are they near desirable amenities, do they have beautiful yards or amazing views. Also think about who the ideal renter would be. If you're near Sac State students might pay more if the property is in Carmichael a family might pay more. The Zillow and BP seems to be the most accurate based on the data you provided. If you ask for higher rent you might not rent it out for a while and vacancy will kill your returns. Are there other advantages you can advertise like pet friendly etc?
- 2yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Rentometer is likely to be the closest, but it depends on what condition your rental is in. If it's vanilla and your rental absorption is high, push to the bottom of the range and vice versa. No matter what you are pricing, a rental or a sale, you never want to price high and adjust it down because then people think something is wrong with it. Price at value and make sure you are presenting your rental in the best way. If you are listing it yourself with iPhone photos, that's not the best way.
- Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes2y
I assume you plan to use an PM? Otherwise your plan is to Random *** guess? That gives you one of two results. You’re too low and you could have had a professional PM for free or you’re too high, and after one month’s vacancy, you could have a professional PM for free.
Let’s pretend neither of those things happen and you nail it dead nuts on. Make sure you aren’t targeted by a professional tenant that targets mom and pop landlords, especially in states like CA/NY. Make sure you know every single law like notice periods, security deposits, screening/discrimination laws, support animals and so on. Make sure you have a professional CA lease, the proper insurance and so on. Screwing up any one of these things will provide results that are not good.
I understand the “old” wisdom used to be manage the first one or two yourself so you know what to look for in a PM when you have more. But I don’t know if it’s an exaggeration to say the number of landlord/tenant laws has doubled in the last 10 years. And none of them in the landlord’s favor. Ps. They don’t contact you when the law changes. You’re supposed to have caught that one article on that one news show where they said starting on this date landlords must do this or they’ll be punished.
Good luck. If you can make it in California you can make it anywhere. But please try to understand you don’t know what you don’t know. I’m not saying the tenants and the government are out to screw you, but they’re not on your side. Even a little bit.
- Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes2y
I'd recommend talking to at least 2 Property Management companies in Sacramento to see what rents are going for condos. I found Rentometer either too low or too high depending on the location for my SFHs since it doesn't take into consideration the condition.
I agree with Bill about really knowing your landlord-tenant laws and vet your prospective tenants carefully if you're self managing. I'm renting out my Bay Area SFH to family members but if I were renting to strangers I would most likely use an experienced PM company.
- Realtor · Los Angeles, CA · Member since 2018 · 952 posts · 1k+ votes2y
@Daniel Barad, I agree that Rentometer is probably closest. I start with Rentometer. What you should do now is use Zillow and Apartments.com to make a list of comparable apartments and what's they're advertised for. Try to determine for yourself where on the spectrum your apartment falls, then list there. Take into account: bedroom and bathroom counts, square footage of the unit, whether parking is included, whether laundry in in-unit or not or nonexistent, central air vs. window units vs. nothing, and the general condition and age of the interior.
Good luck!
- 2yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Daniel Barad you're not going to succeed if you keep looking for shortcut answers!
How much do you understand about how all the online systems come up with their estimates?
Highly recommend you spend 1-2 hours learning how to properly do a CMA (Competitive Market Analysis).
Here's a big hint: none of the online sites have figured out how to take into account the different levels of finish between comparables! So, they will give same consideration to a property with a dated kitchen as a property with a brand new kitchen.
Logical Property Management4.9451 Reviews - 2yAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
Stop using these calculators! They are only meant to get you in the ballpark and it sounds lie the ball park is $2500 - $3000. You will have to do the research on your own to figure out what the true price is going to be. Narrow the search down to that Association to start and expand from there.
Bartomeo Property Management4.7150 Reviews - 2yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
Zillow is probably the worst place to get rental comps. Anyone can put an ad up. Keep in mind- what someone is asking for rent can be VERY far away from what they can get.
Find your local NARPM chapter and ask them for their rental data. It's the best you can get and they track actual leases in your market, not what Sally thinks she can get for her converted garage.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes2y
Quote from @Daniel Barad:
I will pile on in case you don't believe the others. Computer algorithms are based on number-crunching. They don't evaluate the actual floorplan, quality of finishes, view out the living room window, yard condition, the barking dogs next door, or hundreds of other data points. Zillow, rentometer, and other tools are useful for getting a ballpark on a market, but you should learn to evaluate property on your own. Compare your rental to others. Pretend to be a renter and secretly shop the competition.
The DIY Landlord Book4.7248 Reviews - 2yBen HowardPro MemberReal Estate Agent · El Dorado Hills, CA · Member since 2017 · 160 posts · 67 votesI agree with what other people have stated regarding the need to consider factors which Zillow and Rentometer don't such as condition, amenities of the complex, and age of unit. I would also add that with Rentometer you need to ensure that you have selected apt/condo, not house/duplex. Then, be very careful with search radius and look back duration. Search radius is particularly important if there are competing condos which are higher or lower than your property due to condition, amenities of the complex, and age of unit. Finally, one other word of advice, make sure that you are allowed to rent your condo, and that the association has not already reached the maximum number of rentals in the community.
- 2yScott ScovilleBusiness MemberReal Estate Agent · Sacramento, CA · Member since 2019 · 497 posts · 272 votes
Quote from @Daniel Barad:
I am trying to rent out my condo. Zillow gives a monthly rent estimate of $2,200. Rentometer estimates an average of $3,500 and a range of $3,000-$4,000. Apartments.com estimates $3,500. BiggerPockets estimates $2,500. Any advice? Should I just post it at the high end estimate and adjust it down?
The way they aggregate rents is not very accurate. I always list on the high side, and adjust rents based on leads. There's a lack of housing in Sacramento, so if you have a nice property in a nice area, you should be able to get a premium on rents. Be happy to chat and share my personal experiences if you'd like.
- Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes2y
I bet it’s been a month or two since I literally laughed out loud. But that’s a good one.
The A is for accuracy…
Luckily sometimes they’re low and you’re pleasantly surprised. - 2yDave MeyerPro MemberHead of Real Estate Investing at BiggerPockets · Seattle, WA · Member since 2015 · 224 posts · 826 votes
@Daniel Barad Do you mind sharing the link to the BP estimate or address with me? If you don't want to make it public, you can DM me and I won't share the info. Just want to take a closer look for you to see where the discrepancies might be coming from.
- 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesOne of those two definitely is......
Quote from @Bill B.:
I’m not saying the tenants and the government are out to screw you
- Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 461 posts · 250 votes2y
Hi Daniel-
Great question!
The best way to be certain of market rents is to work with an experienced local property manager and have them go through your property and give you the market rents and what/if anything you could do to improve the property and rents.
Short of that, look at similar rentals to yours that are listed and use a comparative market analysis method to determine market rents.
Really recommend working with a local property manager for making your ownership experience as passive as possible, for compliance issues related to renting, and to help you scale to more properties leveraging the property manager's time and experience.
To Your Success!
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes2y
You've got your ballpark range (big ballpark). Drill down on those comps to see which ones are most accurate. The ultimate test is what the market will bear. I like to set rent so that I get about 20 applicants and can choose the best. I'd list it at the median, but it all depends on location.
- 2yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
Quote from @Steve K.:
You've got your ballpark range (big ballpark). Drill down on those comps to see which ones are most accurate. The ultimate test is what the market will bear. I like to set rent so that I get about 20 applicants and can choose the best. I'd list it at the median, but it all depends on location.
This sounds like a fair housing claim waiting to happen- they're really expensive and almost impossible to win if you don't have a documented process. Collecting applicants so that you can "choose" the best one can get you in hot water pretty quickly. I'd suggest you define your qualification criteria and publish it in your ad and follow HUD screening best practices from there.
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes2yI usually schedule an open-house style showing on a weekend, collect applications from interested parties that day so basically at the same time, and pick the most qualified applicant (the first one to apply who meets the criteria clearly listed in my ad, whose employment and references check out). That’s how I choose the best one. If the application is incomplete or the applicant doesn’t meet my criteria, or if I can’t verify their employment and speak to their references, the applicant is denied. Do you still think that’s a fair housing violation?
Quote from @Corby Goade:
Quote from @Steve K.:
You've got your ballpark range (big ballpark). Drill down on those comps to see which ones are most accurate. The ultimate test is what the market will bear. I like to set rent so that I get about 20 applicants and can choose the best. I'd list it at the median, but it all depends on location.
This sounds like a fair housing claim waiting to happen- they're really expensive and almost impossible to win if you don't have a documented process. Collecting applicants so that you can "choose" the best one can get you in hot water pretty quickly. I'd suggest you define your qualification criteria and publish it in your ad and follow HUD screening best practices from there.
- 2yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votesThis is a blind spot for most self managers. I honestly don't think there are many blatant fair housing violations out there, but the real challenge isn't whether or not you violated those laws- it's proving that you did not that will be the problem.
Quote from @Steve K.:
I usually schedule an open-house style showing on a weekend, collect applications from interested parties that day so basically at the same time, and pick the most qualified applicant (the first one to apply who meets the criteria clearly listed in my ad, whose employment and references check out). That’s how I choose the best one. If the application is incomplete or the applicant doesn’t meet my criteria, or if I can’t verify their employment and speak to their references, the applicant is denied. Do you still think that’s a fair housing violation?Quote from @Corby Goade:
Quote from @Steve K.:
You've got your ballpark range (big ballpark). Drill down on those comps to see which ones are most accurate. The ultimate test is what the market will bear. I like to set rent so that I get about 20 applicants and can choose the best. I'd list it at the median, but it all depends on location.
This sounds like a fair housing claim waiting to happen- they're really expensive and almost impossible to win if you don't have a documented process. Collecting applicants so that you can "choose" the best one can get you in hot water pretty quickly. I'd suggest you define your qualification criteria and publish it in your ad and follow HUD screening best practices from there.
Taking your screening method above- as an investor, it would make sense that you are choosing the applicant with the best balance of income, credit, references and a clean background.
However- what if there was another applicant who was a close second in your opinion and they didn't get the house, but they exceeded your criteria- maybe their credit score was 20 points lower. They could file a fair housing suit against you claiming that you did not accept them because they were white, or Jewish, or they had kids, or didnt' have kids or they were Canadian. There would be no way for you to prove that this claim WASN'T true, unless you followed a more rigid protocol and documented it.
Fair housing fines are no joke- they typically start around $10k. There are attorneys who make their living by hiring people to apply for rentals and going after landlords who don't have a clearly documented procedure. There's a law school in my town and they do this as a senior project every year- take landlords to court for fair housing and relish in getting them fined. It's way more common than most people think.
I wrote a blog about the process here and there's a great, step by step guide to HUD screening best practices here. - 2yRyan KellyBusiness MemberReal Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
@Daniel Barad do you have a good relationship with a real estate agent? If so, have them pull lease comps to see what similar properties are actually leasing for, not just advertising for. Takes 5 minutes and far more accurate than the guessing game of online estimators.
Ryan Kelly Group - Keller Williams5110 Reviews - 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
@Daniel Barad I'm sweating it out over here. Which rent estimate was most accurate!?
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes2yI can see where my language “choose the best applicant” threw you off but I’m confident that I am not violating any fair housing laws. I would never deny anyone due to their race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, disability or (new one for Colorado) source of income. By best applicant I simply mean the one that meets my criteria (minimum credit score, income at 2-3x rent amount, etc.), completes the application, pays the application fee, has employment and references that check out, agrees to the terms of my lease etc. I use the exact same process and criteria for everyone and document everything. I see your point but don’t agree that I’m at high risk of being accused of a fair housing violation. Is it because I’m collecting several applications at once and picking the most qualified applicant? I don’t think that’s a violation since they are all applying at the same time at the open house. If you have advice about how to improve my process I’m all ears…
Quote from @Corby Goade:
This is a blind spot for most self managers. I honestly don't think there are many blatant fair housing violations out there, but the real challenge isn't whether or not you violated those laws- it's proving that you did not that will be the problem.Quote from @Steve K.:
I usually schedule an open-house style showing on a weekend, collect applications from interested parties that day so basically at the same time, and pick the most qualified applicant (the first one to apply who meets the criteria clearly listed in my ad, whose employment and references check out). That’s how I choose the best one. If the application is incomplete or the applicant doesn’t meet my criteria, or if I can’t verify their employment and speak to their references, the applicant is denied. Do you still think that’s a fair housing violation?Quote from @Corby Goade:
Quote from @Steve K.:
You've got your ballpark range (big ballpark). Drill down on those comps to see which ones are most accurate. The ultimate test is what the market will bear. I like to set rent so that I get about 20 applicants and can choose the best. I'd list it at the median, but it all depends on location.
This sounds like a fair housing claim waiting to happen- they're really expensive and almost impossible to win if you don't have a documented process. Collecting applicants so that you can "choose" the best one can get you in hot water pretty quickly. I'd suggest you define your qualification criteria and publish it in your ad and follow HUD screening best practices from there.
Taking your screening method above- as an investor, it would make sense that you are choosing the applicant with the best balance of income, credit, references and a clean background.
However- what if there was another applicant who was a close second in your opinion and they didn't get the house, but they exceeded your criteria- maybe their credit score was 20 points lower. They could file a fair housing suit against you claiming that you did not accept them because they were white, or Jewish, or they had kids, or didnt' have kids or they were Canadian. There would be no way for you to prove that this claim WASN'T true, unless you followed a more rigid protocol and documented it.
Fair housing fines are no joke- they typically start around $10k. There are attorneys who make their living by hiring people to apply for rentals and going after landlords who don't have a clearly documented procedure. There's a law school in my town and they do this as a senior project every year- take landlords to court for fair housing and relish in getting them fined. It's way more common than most people think.
I wrote a blog about the process here and there's a great, step by step guide to HUD screening best practices here. - 2yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
Quote from @Steve K.:
I can see where my language “choose the best applicant” threw you off but I’m confident that I am not violating any fair housing laws. I would never deny anyone due to their race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, disability or (new one for Colorado) source of income. By best applicant I simply mean the one that meets my criteria (minimum credit score, income at 2-3x rent amount, etc.), completes the application, pays the application fee, has employment and references that check out, agrees to the terms of my lease etc. I use the exact same process and criteria for everyone and document everything. I see your point but don’t agree that I’m at high risk of being accused of a fair housing violation. Is it because I’m collecting several applications at once and picking the most qualified applicant? I don’t think that’s a violation since they are all applying at the same time at the open house. If you have advice about how to improve my process I’m all ears…Quote from @Corby Goade:
This is a blind spot for most self managers. I honestly don't think there are many blatant fair housing violations out there, but the real challenge isn't whether or not you violated those laws- it's proving that you did not that will be the problem.Quote from @Steve K.:
I usually schedule an open-house style showing on a weekend, collect applications from interested parties that day so basically at the same time, and pick the most qualified applicant (the first one to apply who meets the criteria clearly listed in my ad, whose employment and references check out). That’s how I choose the best one. If the application is incomplete or the applicant doesn’t meet my criteria, or if I can’t verify their employment and speak to their references, the applicant is denied. Do you still think that’s a fair housing violation?Quote from @Corby Goade:
Quote from @Steve K.:
You've got your ballpark range (big ballpark). Drill down on those comps to see which ones are most accurate. The ultimate test is what the market will bear. I like to set rent so that I get about 20 applicants and can choose the best. I'd list it at the median, but it all depends on location.
This sounds like a fair housing claim waiting to happen- they're really expensive and almost impossible to win if you don't have a documented process. Collecting applicants so that you can "choose" the best one can get you in hot water pretty quickly. I'd suggest you define your qualification criteria and publish it in your ad and follow HUD screening best practices from there.
Taking your screening method above- as an investor, it would make sense that you are choosing the applicant with the best balance of income, credit, references and a clean background.
However- what if there was another applicant who was a close second in your opinion and they didn't get the house, but they exceeded your criteria- maybe their credit score was 20 points lower. They could file a fair housing suit against you claiming that you did not accept them because they were white, or Jewish, or they had kids, or didnt' have kids or they were Canadian. There would be no way for you to prove that this claim WASN'T true, unless you followed a more rigid protocol and documented it.
Fair housing fines are no joke- they typically start around $10k. There are attorneys who make their living by hiring people to apply for rentals and going after landlords who don't have a clearly documented procedure. There's a law school in my town and they do this as a senior project every year- take landlords to court for fair housing and relish in getting them fined. It's way more common than most people think.
I wrote a blog about the process here and there's a great, step by step guide to HUD screening best practices here.Hey Steve- to be clear, I don't think you are violating any fair housing laws- the problem is your process doesn't prove that you aren't. That's the rub with fair housing, it's not as if you are going to court to prove you aren't a racist or a sexist- you have to provide evidence that you are not, which is impossible without following a documented process.
While your process isn't ideal IMHO- the best way for you to protect yourself would be to number each application as it is handed to you and when you get to your desk, and screen them in that order. The first application you screen that meets your minimum requirements should be offered the lease. If you screen more than one at a time and have two qualified applicants to "choose" from, you have put yourself right back in the position of not being able to prove that you weren't violating fair housing. One at a time is the key. Many cities are regulating who pays for screenings and how much they can charge because many landlords will charge applicants a fee and then they'll take 50 applications, but that's a whole different conversation.
To complicate things further, you should have a policy around how and when they accept your offer. We give that prospective tenant 48 hours to sign the lease and pay a deposit and first month's rent in verified funds. If they fail to do so, we screen the next applicants, in order, until we get another qualified person.
I hope that helps- let me know if you have any other questions.
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes2yI appreciate what you’re saying and agree that it’s wise to be careful and document everything in the event of a fair housing violation claim. The burden of proof would actually be on the claimant in this case however, not the defendant (your comment makes it sounds as if the defendant would have the burden of proof which is technically incorrect). It’s not a fair housing violation to choose the best applicant from a pool of applicants. Note that the application process is not completed at the open house, that’s just the first step in my screening process and I go with the first applicant that qualifies who completes the entire application process. I don’t take an application fee from anyone except the most qualified applicant, usually just one person in order to run their background check before finalizing the lease. I do document everything. I am not discriminating. Again the burden of proof would be on the claimant (correct me if I’m wrong, I’m not a lawyer), and in the absence of proof there wouldn’t be a case. If there were a case, I’d have documentation that I’m not being discriminatory. I’ve actually had lawyers apply to rent several of my units and at times have gone with more qualified applicants than those lawyers without any issues. I do appreciate your input however, not everyone is familiar with fair housing laws. For me the open house method is the most expedient way to fill a unit as I don’t have time to schedule 20+ individual showings. You make a good point though that this does perhaps create a little more risk of a fair housing violation claim, and I’ll take your advice on numbering applications as they come in. I feel comfortable with my process as I know I am not discriminating due to any of the protected statuses, and I’m also documenting everything and treating everyone equally. I let everyone know who doesn’t get the unit that I accepted the first qualified applicant to complete the entire application process. I use the same qualifying criteria for everyone, etc. Again I do appreciate the input and see where my first comment inadequately described my entire process.
Quote from @Corby Goade:
Quote from @Steve K.:
I can see where my language “choose the best applicant” threw you off but I’m confident that I am not violating any fair housing laws. I would never deny anyone due to their race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, disability or (new one for Colorado) source of income. By best applicant I simply mean the one that meets my criteria (minimum credit score, income at 2-3x rent amount, etc.), completes the application, pays the application fee, has employment and references that check out, agrees to the terms of my lease etc. I use the exact same process and criteria for everyone and document everything. I see your point but don’t agree that I’m at high risk of being accused of a fair housing violation. Is it because I’m collecting several applications at once and picking the most qualified applicant? I don’t think that’s a violation since they are all applying at the same time at the open house. If you have advice about how to improve my process I’m all ears…Quote from @Corby Goade:
This is a blind spot for most self managers. I honestly don't think there are many blatant fair housing violations out there, but the real challenge isn't whether or not you violated those laws- it's proving that you did not that will be the problem.Quote from @Steve K.:
I usually schedule an open-house style showing on a weekend, collect applications from interested parties that day so basically at the same time, and pick the most qualified applicant (the first one to apply who meets the criteria clearly listed in my ad, whose employment and references check out). That’s how I choose the best one. If the application is incomplete or the applicant doesn’t meet my criteria, or if I can’t verify their employment and speak to their references, the applicant is denied. Do you still think that’s a fair housing violation?Quote from @Corby Goade:
Quote from @Steve K.:
You've got your ballpark range (big ballpark). Drill down on those comps to see which ones are most accurate. The ultimate test is what the market will bear. I like to set rent so that I get about 20 applicants and can choose the best. I'd list it at the median, but it all depends on location.
This sounds like a fair housing claim waiting to happen- they're really expensive and almost impossible to win if you don't have a documented process. Collecting applicants so that you can "choose" the best one can get you in hot water pretty quickly. I'd suggest you define your qualification criteria and publish it in your ad and follow HUD screening best practices from there.
Taking your screening method above- as an investor, it would make sense that you are choosing the applicant with the best balance of income, credit, references and a clean background.
However- what if there was another applicant who was a close second in your opinion and they didn't get the house, but they exceeded your criteria- maybe their credit score was 20 points lower. They could file a fair housing suit against you claiming that you did not accept them because they were white, or Jewish, or they had kids, or didnt' have kids or they were Canadian. There would be no way for you to prove that this claim WASN'T true, unless you followed a more rigid protocol and documented it.
Fair housing fines are no joke- they typically start around $10k. There are attorneys who make their living by hiring people to apply for rentals and going after landlords who don't have a clearly documented procedure. There's a law school in my town and they do this as a senior project every year- take landlords to court for fair housing and relish in getting them fined. It's way more common than most people think.
I wrote a blog about the process here and there's a great, step by step guide to HUD screening best practices here.Hey Steve- to be clear, I don't think you are violating any fair housing laws- the problem is your process doesn't prove that you aren't. That's the rub with fair housing, it's not as if you are going to court to prove you aren't a racist or a sexist- you have to provide evidence that you are not, which is impossible without following a documented process.
While your process isn't ideal IMHO- the best way for you to protect yourself would be to number each application as it is handed to you and when you get to your desk, and screen them in that order. The first application you screen that meets your minimum requirements should be offered the lease. If you screen more than one at a time and have two qualified applicants to "choose" from, you have put yourself right back in the position of not being able to prove that you weren't violating fair housing. One at a time is the key. Many cities are regulating who pays for screenings and how much they can charge because many landlords will charge applicants a fee and then they'll take 50 applications, but that's a whole different conversation.
To complicate things further, you should have a policy around how and when they accept your offer. We give that prospective tenant 48 hours to sign the lease and pay a deposit and first month's rent in verified funds. If they fail to do so, we screen the next applicants, in order, until we get another qualified person.
I hope that helps- let me know if you have any other questions.
- Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes2y
Always go conservative with your estimates, but I would look at the individual rental comps to see what is a more similar comparison. Similar reno/location will be more accurate as Zillow/BP/Rentometer all pull similar bed/bath comps in the market and don't account for the fine details.
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