Potential Renters Don't Follow Through in Rental Process

Potential Renters Don't Follow Through in Rental Process

Member since 2022 · 31 posts · 34 votes

Hello! I own a duplex, live in one side and rent out the other. I had the previous side rented WAY under value ($850 with utilities included) for the past 2 years. My previous tenants moved out and I currently have the property listed at $1,100/month utilities paid by the tenant (which is in-line with it's market value and worth). I have had so much interest in it it's hard to keep up. I have a thorough pre-screen process and ask questions prior to scheduling a tour. About 90% of the time after the showing the potential renters are interested and do the application and background check but when it comes time for the deposit to hold (I state the entire process and qualifications in the pre-screen and go over it with them in person so my expectations are clear), nobody follows through (non-refundable deposit to hold is half of security deposit at $550 and the rest of the security deposit ($550) is to be paid at lease signing). It is extremely frustrating and time consuming. 


My question is: How do I ensure these potential renters will follow through? Is there a way I need to be more direct with them in the process? I feel like they are all duds and say they can pay everything on time but then they don't, obviously I don't want renters that don't pay on time anyways but it just wastes so much time and money. Everyday my unit is not rented out it's costing me. Give me your advice!

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Rental Property Investor · Prince George's County, MD · Member since 2022 · 177 posts · 187 votes
4y
Quote from @Winter Heintz:
Quote from @Malkia Ra:
Quote from @Winter Heintz:
Quote from @Theresa Harris:

If they are viewing it and doing the background check, you'd think they'd be serious vs tire kickers.  How much time is passing between viewing, screening and you contacting them to sign a lease?  Are they aware that the $550 converts to part of their deposit once they move in?


 That's what I would think. Each background check/credit check is $29 per renter via Zillow, so they have some skin in the game. They are aware that the $550 goes towards the security deposit. I am sure to explain that to them thoroughly so they don't think it's additional. Depends on availability between myself and the potential renters but I try to get the pre-screen, questions, tour and application done within 48 hours. I've been giving tours pretty much every other day.  Some people can't make a tour until a week out! 

Zillow's $29 application fee allows potential renters UNLIMITED application-submissions (for 30 days).  If the application process is through Zillow, people are most likely applying to tons of rentals within that period.  If they're not committing, chances are they've submitted applications elsewhere and most likely have their eye on something (they think) could be better.


 Good insight! What's a better background / credit check software I could use?

I recently used TurboTenant to screen and ultimately got a lease signed.  The fee (paid by the potential tenant) is higher; however I found the background check/eviction report/credit check to be more thorough than Zillow's screening.

The service is free for landlords.  You simply provide the name and email of your potential tenant(s) and TubroTenant does the rest.  You're also able to print or download the screening results.

Once I approved the screening, I sent the lease via DocuSign (with a 48 hour window clause to sign the lease and send the deposit).

Smooth like butta!

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    Maybe lower your nonrefundable deposit to get someone to bite?

    Find multiple qualified people and offer it to several people and let them know that the first person to put down the $500 gets the place.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    If they are viewing it and doing the background check, you'd think they'd be serious vs tire kickers.  How much time is passing between viewing, screening and you contacting them to sign a lease?  Are they aware that the $550 converts to part of their deposit once they move in?

  • Member since 2022 · 31 posts · 34 votes
    4y

    I did just lower it to $550, previously it was the entire security deposit. I let the potential renters know of the lowered deposit and still no bites. I can lower it an additional $50 if you think that would make a big difference. 

  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Theresa Harris:

    If they are viewing it and doing the background check, you'd think they'd be serious vs tire kickers.  How much time is passing between viewing, screening and you contacting them to sign a lease?  Are they aware that the $550 converts to part of their deposit once they move in?


     That's what I would think. Each background check/credit check is $29 per renter via Zillow, so they have some skin in the game. They are aware that the $550 goes towards the security deposit. I am sure to explain that to them thoroughly so they don't think it's additional. Depends on availability between myself and the potential renters but I try to get the pre-screen, questions, tour and application done within 48 hours. I've been giving tours pretty much every other day.  Some people can't make a tour until a week out! 

  • Rental Property Investor · Prince George's County, MD · Member since 2022 · 177 posts · 187 votes
    4y
    Quote from @Winter Heintz:
    Quote from @Theresa Harris:

    If they are viewing it and doing the background check, you'd think they'd be serious vs tire kickers.  How much time is passing between viewing, screening and you contacting them to sign a lease?  Are they aware that the $550 converts to part of their deposit once they move in?


     That's what I would think. Each background check/credit check is $29 per renter via Zillow, so they have some skin in the game. They are aware that the $550 goes towards the security deposit. I am sure to explain that to them thoroughly so they don't think it's additional. Depends on availability between myself and the potential renters but I try to get the pre-screen, questions, tour and application done within 48 hours. I've been giving tours pretty much every other day.  Some people can't make a tour until a week out! 

    Zillow's $29 application fee allows potential renters UNLIMITED application-submissions (for 30 days).  If the application process is through Zillow, people are most likely applying to tons of rentals within that period.  If they're not committing, chances are they've submitted applications elsewhere and most likely have their eye on something (they think) could be better.

  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Malkia Ra:
    Quote from @Winter Heintz:
    Quote from @Theresa Harris:

    If they are viewing it and doing the background check, you'd think they'd be serious vs tire kickers.  How much time is passing between viewing, screening and you contacting them to sign a lease?  Are they aware that the $550 converts to part of their deposit once they move in?


     That's what I would think. Each background check/credit check is $29 per renter via Zillow, so they have some skin in the game. They are aware that the $550 goes towards the security deposit. I am sure to explain that to them thoroughly so they don't think it's additional. Depends on availability between myself and the potential renters but I try to get the pre-screen, questions, tour and application done within 48 hours. I've been giving tours pretty much every other day.  Some people can't make a tour until a week out! 

    Zillow's $29 application fee allows potential renters UNLIMITED application-submissions (for 30 days).  If the application process is through Zillow, people are most likely applying to tons of rentals within that period.  If they're not committing, chances are they've submitted applications elsewhere and most likely have their eye on something (they think) could be better.


     Good insight! What's a better background / credit check software I could use?

  • Rental Property Investor · Prince George's County, MD · Member since 2022 · 177 posts · 187 votes
    4y
    Quote from @Winter Heintz:
    Quote from @Malkia Ra:
    Quote from @Winter Heintz:
    Quote from @Theresa Harris:

    If they are viewing it and doing the background check, you'd think they'd be serious vs tire kickers.  How much time is passing between viewing, screening and you contacting them to sign a lease?  Are they aware that the $550 converts to part of their deposit once they move in?


     That's what I would think. Each background check/credit check is $29 per renter via Zillow, so they have some skin in the game. They are aware that the $550 goes towards the security deposit. I am sure to explain that to them thoroughly so they don't think it's additional. Depends on availability between myself and the potential renters but I try to get the pre-screen, questions, tour and application done within 48 hours. I've been giving tours pretty much every other day.  Some people can't make a tour until a week out! 

    Zillow's $29 application fee allows potential renters UNLIMITED application-submissions (for 30 days).  If the application process is through Zillow, people are most likely applying to tons of rentals within that period.  If they're not committing, chances are they've submitted applications elsewhere and most likely have their eye on something (they think) could be better.


     Good insight! What's a better background / credit check software I could use?

    I recently used TurboTenant to screen and ultimately got a lease signed.  The fee (paid by the potential tenant) is higher; however I found the background check/eviction report/credit check to be more thorough than Zillow's screening.

    The service is free for landlords.  You simply provide the name and email of your potential tenant(s) and TubroTenant does the rest.  You're also able to print or download the screening results.

    Once I approved the screening, I sent the lease via DocuSign (with a 48 hour window clause to sign the lease and send the deposit).

    Smooth like butta!

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    4y

    @Winter Heintz welcome to BP! I keep the process going until an applicant qualifies which includes payment of whatever is called for; if someone has not paid a holding fee or deposit they are just a tire kicker like anyone else. Make sure you check rental history with the prior LL and not the applicant's mother; you do that by finding the telephone number yourself. Same thing with employment.

    Every step in your process should be there to eliminate,  and not include an applicant. If they don't fill out an application-gone, don't call back-gone, don't provide references-gone. No big deal, just move on with others. All the best. Don't count on anybody and don't get frustrated when they let you down.

  • Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Winter Heintz I don't do individual showings. I like the open house style. I schedule Friday evenings and Saturdays every  15 minutes. That way if someone doesn't show you don't have long before the next potential tenant. There is a sense of urgency when the next potential tenant shows up at the property and the current potential tenant is still at the property. 

    It is costing you money but how much more would it cost you to have to evict someone because you want to get it rented right away. If no one is taking the next step they must feel there is better value out there like @Malkia Ra said. You could always do a price reduction and see if that would net you a renter. Are you on other platforms other than Zillow? 

  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Tim Herman:

    @Winter Heintz I don't do individual showings. I like the open house style. I schedule Friday evenings and Saturdays every  15 minutes. That way if someone doesn't show you don't have long before the next potential tenant. There is a sense of urgency when the next potential tenant shows up at the property and the current potential tenant is still at the property. 

    It is costing you money but how much more would it cost you to have to evict someone because you want to get it rented right away. If no one is taking the next step they must feel there is better value out there like @Malkia Ra said. You could always do a price reduction and see if that would net you a renter. Are you on other platforms other than Zillow? 


     I totally understand. I will be implementing the 15 minute interval tours on certain days rather than spreading them out. I am currently getting set up with TurboTenant and will stay away from the Zillow application. If they are interested, they will pay the $55 for the turbo tenant application. I have to keep telling myself this is not a charity! 

    I am on Facebook, Craigslist, Zillow and multiple other platforms- whatever Turbotenant puts it on. 

  • Rental Property Investor · Prince George's County, MD · Member since 2022 · 177 posts · 187 votes
    4y
    Quote from @Winter Heintz:
    Quote from @Tim Herman:

    @Winter Heintz I don't do individual showings. I like the open house style. I schedule Friday evenings and Saturdays every  15 minutes. That way if someone doesn't show you don't have long before the next potential tenant. There is a sense of urgency when the next potential tenant shows up at the property and the current potential tenant is still at the property. 

    It is costing you money but how much more would it cost you to have to evict someone because you want to get it rented right away. If no one is taking the next step they must feel there is better value out there like @Malkia Ra said. You could always do a price reduction and see if that would net you a renter. Are you on other platforms other than Zillow? 


     I totally understand. I will be implementing the 15 minute interval tours on certain days rather than spreading them out. I am currently getting set up with TurboTenant and will stay away from the Zillow application. If they are interested, they will pay the $55 for the turbo tenant application. I have to keep telling myself this is not a charity! 

    I am on Facebook, Craigslist, Zillow and multiple other platforms- whatever Turbotenant puts it on. 

    That part!

    I always see other landlords put in their Zillow listings, "I/we do not use Zillow's application process.  Please contact me/us for a link to another service."  Zillow is great for advertising, not the best for applications/screening. 

    And you are correct, if a potential tenant is serious, they'll pay TurboTenant's application fee and your deposit.  Interestingly I found a solid tenant via Craigslist.
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    @Winter Heintz Whatever you do, do NOT feel an urgency to get this rented. Far better to have it sit empty for a couple months than to get a bad tenant in there. Then you will wish you had waited and been more patient.....

  • Member since 2021 · 256 posts · 213 votes
    4y

    @Bruce Woodruff said it perfectly.

     What it worked for me is when I screened the tenants and picked whoever I want to move forward and look further, I always asked them do you have the 1st month rent + security deposit equaling the 1st month rent and I shut up and listen to the reaction and answer. ( Phone sales habit haha )

     So far, it worked every time for me. If I hear "mmm" they gone, if I hear an unreasonable questions back- gone. You get the idea.

     Take your time and pick the best tenant and choose the method that works the best for you. I don't like to take holding fees. 
       

  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Galen Ikonomov:

    @Bruce Woodruff said it perfectly.

     What it worked for me is when I screened the tenants and picked whoever I want to move forward and look further, I always asked them do you have the 1st month rent + security deposit equaling the 1st month rent and I shut up and listen to the reaction and answer. ( Phone sales habit haha )

     So far, it worked every time for me. If I hear "mmm" they gone, if I hear an unreasonable questions back- gone. You get the idea.

     Take your time and pick the best tenant and choose the method that works the best for you. I don't like to take holding fees. 
       


     Thank you, everyone! I really appreciate this advice. I'm learning up on turbo tenant, I will be utilizing that software over Zillow. I will be more thorough in my pre-screening and questions ( I love the waiting for a pause or excuse! - thank you!). For now, I will keep my deposit to hold at half the security deposit. I need to do more of an "open house" type of tour so I'm not exhausting myself over so many days. I understand it can take a while to find a good quality tenant so I am being as patient as I can while being as efficient as possible. Asking advice on here is part of the process and I'm learning so much! 

    The last thing I want to do is be rushed into it and get a terrible tenant. 

  • Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    It looks like they self screened themselves out and you saved yourself a future problem.  You are more lenient than I as I expect first month and the deposit of a month plus 600 pet deposit immediately after acceptance which is often close to 5k.  Moving is expensive and tenants should know this.  If you don’t have savings to move then you don’t have an emergency fund and I may not make the top of your list for payment if something goes wrong.  This is a big part of my phone prescreening and if they don’t have the funds I don’t show but tell them to call when they do.  No surprises here but I have never gotten a call back which is fine.  I’m in A to B+ properties so this may not work everywhere.  I have decided to accept a tenant before but when I called to share the good news they needed an extra week for payday and I rescinded the offer since they lied saying he had the funds ready in my required 2 days.  

  • Rental Property Investor · Prince George's County, MD · Member since 2022 · 177 posts · 187 votes
    4y
    Quote from @Winter Heintz:
    Quote from @Galen Ikonomov:

    @Bruce Woodruff said it perfectly.

     What it worked for me is when I screened the tenants and picked whoever I want to move forward and look further, I always asked them do you have the 1st month rent + security deposit equaling the 1st month rent and I shut up and listen to the reaction and answer. ( Phone sales habit haha )

     So far, it worked every time for me. If I hear "mmm" they gone, if I hear an unreasonable questions back- gone. You get the idea.

     Take your time and pick the best tenant and choose the method that works the best for you. I don't like to take holding fees. 
       


     Thank you, everyone! I really appreciate this advice. I'm learning up on turbo tenant, I will be utilizing that software over Zillow. I will be more thorough in my pre-screening and questions ( I love the waiting for a pause or excuse! - thank you!). For now, I will keep my deposit to hold at half the security deposit. I need to do more of an "open house" type of tour so I'm not exhausting myself over so many days. I understand it can take a while to find a good quality tenant so I am being as patient as I can while being as efficient as possible. Asking advice on here is part of the process and I'm learning so much! 

    The last thing I want to do is be rushed into it and get a terrible tenant. 

    Good luck, Winter.  And I can't agree enough how both being patient and SCREENING is crucial.

    I cannot tell you how many anxious renters have attempted to win me over with the "I can move in right away, I have the SD and FMR now," only to find after further screening their credit is shot and they've had issues paying their rent to previous landlords.

    A quality renter with a solid history/screening is the goal.
  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Adam Martin:

    It looks like they self screened themselves out and you saved yourself a future problem.  You are more lenient than I as I expect first month and the deposit of a month plus 600 pet deposit immediately after acceptance which is often close to 5k.  Moving is expensive and tenants should know this.  If you don’t have savings to move then you don’t have an emergency fund and I may not make the top of your list for payment if something goes wrong.  This is a big part of my phone prescreening and if they don’t have the funds I don’t show but tell them to call when they do.  No surprises here but I have never gotten a call back which is fine.  I’m in A to B+ properties so this may not work everywhere.  I have decided to accept a tenant before but when I called to share the good news they needed an extra week for payday and I rescinded the offer since they lied saying he had the funds ready in my required 2 days.  


     I am in a very rural locations so I have to know my market. I know I will not be working with high-class , top dollar tenants expecting granite counter tops, and a view of the ocean, but my unit mostly appeals to young families just starting out or single mothers getting back on their feet (that's been most of my applicants.) So, I make my prices realistic for them, making sure they understand this is not a charity but this is a great, safe place for you and your family and it's worth the monthly rent and rental process.

    Some of the reactions have me thinking that rentals around me are a simple: walk in, sign the lease , give cash and it's yours. It's like they've never been faced with a process or do not expect me to have one. 


    If all else, I don't think I've learned this much in this short amount of time since EVER! My brain is absolute mush from how much GOLD I am learning!

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Stick to your guns on the strict rental process. And good luck! Let us know how it goes....

  • Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes
    4y

    @Winter Heintz, maybe hire a professional property manager and let them do what they do best. The tenant has no reason to know you are the owner. Let them assume you are renting from the same property manager. You can then enjoy your home and privacy.

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    4y

    Hi Winter,

    Just some of my thoughts,

    1. Comparables.  How does your units size, fit and finish, (and any amenities, BBQ, Patio, etc...) compare with similar priced units within a 20 minute or so drive? Inferior, similar, better.

    2. Curb Appeal. Compared to comparables within a 20 min or so drive. Inferior, similar, better.

    3. Your personality as the owner. If you come across as strict, sharp or mean it may lessen those who are interested in the property.

    4. Closing.  Are you trying to CLOSE the sale (do you know how to close), or being passive and just letting Forest Gumps Feather float where ever it wants.

    5. Market Research.  Have you toured the competition within 20 minutes or so drive to see what they offer.

    6. Rental Concessions. Are any of your competitors offering Rental Concession, ie..1st month free rent, a free "Color TV", a free "Phone", etc... (as @Paul Sandhu faces) 

    7. Neighborhood. Is this a "Sketchy" area, is the price right for this particular neighborhood.

    Good Luck!

    Maybe post a curb view screen shot from google, and some interior pics to give people an idea of what you are offering. It might help.

  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Matt Bishop:

    @Winter Heintz, maybe hire a professional property manager and let them do what they do best. The tenant has no reason to know you are the owner. Let them assume you are renting from the same property manager. You can then enjoy your home and privacy.


    True! That is something I am looking to do in the future when I move out of the duplex and will have both units for rent . In the meantime, I enjoy the property management and learning so much and I can handle the one unit. 

  • Real Estate Agent · Pittsburgh, PA · Member since 2014 · 81 posts · 56 votes
    4y

    @Winter Heintz take your application and turn it into a form, like Google Forms. Send the link to any prospective tenants, which will save you time on the phone. Make every item/question mandatory. This is a great way to pre-screen and eliminate tire kickers. Once you start to get people who complete then schedule your showings. Recommended open house style like others have commented. Also as some mentioned do not accept Zillow apps. I have used Transunion Smart Move and TenantReports.com which had been an effective tools for my business. It's better to be strict and find the right tenant than to get the wrong one in there that WILL cost you in the end. Best of luck getting it filled!

  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Scott Mac:

    Hi Winter,

    Just some of my thoughts,

    1. Comparables.  How does your units size, fit and finish, (and any amenities, BBQ, Patio, etc...) compare with similar priced units within a 20 minute or so drive? Inferior, similar, better.

    2. Curb Appeal. Compared to comparables within a 20 min or so drive. Inferior, similar, better.

    3. Your personality as the owner. If you come across as strict, sharp or mean it may lessen those who are interested in the property.

    4. Closing.  Are you trying to CLOSE the sale (do you know how to close), or being passive and just letting Forest Gumps Feather float where ever it wants.

    5. Market Research.  Have you toured the competition within 20 minutes or so drive to see what they offer.

    6. Rental Concessions. Are any of your competitors offering Rental Concession, ie..1st month free rent, a free "Color TV", a free "Phone", etc... (as @Paul Sandhu faces) 

    7. Neighborhood. Is this a "Sketchy" area, is the price right for this particular neighborhood.

    Good Luck!

    Maybe post a curb view screen shot from google, and some interior pics to give people an idea of what you are offering. It might help.


     You are absolutely right! 

    1. My unit is unique in it's size as it's the only 3 bd, 1.5 bath rental unit in the area. 20 minutes into the metro it's inferior to those rentals that are listed at 1500 a month so I feel 1100 makes sense. There is no comparable in my neighborhood but a somewhat similar rental closest to me is 1200-1500. 

    2. I could and WILL work on the curb appeal. It definitely needs some help there, however , we are in the middle of putting up a privacy fence in the back so that's been the main focus.

    3. I am sure to come off as friendly but direct in my rental process. I can be intimidating with my confidence so I try to be relatable and easy-going. My main concern if I'm being too much of a push-over!

    4. I could be a bit more "Let's close this sale now". I feel the process is good ,I do the pre-screen, tour, and ask if they would like me to send the application. Once they get the application I let them know to get it done right away then I will need the deposit to hold within 24 hours to hold it. We just haven't got to the actually receiving money yet. 

    5. I have done extensive market research but there's always room to look more!

    6. I can look into rental concessions! 

    7. The price is within market I know that! 

  • Member since 2022 · 31 posts · 34 votes
    4y
    Quote from @Michael Scott:

    @Winter Heintz take your application and turn it into a form, like Google Forms. Send the link to any prospective tenants, which will save you time on the phone. Make every item/question mandatory. This is a great way to pre-screen and eliminate tire kickers. Once you start to get people who complete then schedule your showings. Recommended open house style like others have commented. Also as some mentioned do not accept Zillow apps. I have used Transunion Smart Move and TenantReports.com which had been an effective tools for my business. It's better to be strict and find the right tenant than to get the wrong one in there that WILL cost you in the end. Best of luck getting it filled!

    I have been using Google Forms!
  • Real Estate Agent · Pittsburgh, PA · Member since 2014 · 81 posts · 56 votes
    4y
    Quote from @Winter Heintz:
    Quote from @Michael Scott:

    @Winter Heintz take your application and turn it into a form, like Google Forms. Send the link to any prospective tenants, which will save you time on the phone. Make every item/question mandatory. This is a great way to pre-screen and eliminate tire kickers. Once you start to get people who complete then schedule your showings. Recommended open house style like others have commented. Also as some mentioned do not accept Zillow apps. I have used Transunion Smart Move and TenantReports.com which had been an effective tools for my business. It's better to be strict and find the right tenant than to get the wrong one in there that WILL cost you in the end. Best of luck getting it filled!

    I have been using Google Forms!

     Well just stick with it, it will work out! Don't deviate from your criteria, someone will come.

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