Strategies for avoiding no show tenants for property showings?

Question

This is a two part question

First, what is your best way to avoid waisting time waiting on a perspective tenant who doesn’t show up?

Secondly, Is there a user friendly app or website that allows perspective tenants to submit a refundable "tour fee". Ie, they pay $50, if they show up they get it back. If they don’t they forfeit the payment.

Thanks,

James Bartlett

Rochester First Choice LLC

Nate Shields · Answer

When I used to show our rentals, I wouldn't do one-off showings. I would schedule one or two days/times where there would be an open house. This would be on all the ads as well. If people are really interested, they'll find a way to make those times work.

Greg M. · Answer

I'm in an extremely hot market, so "I'll be showing the unit on Saturday from 11AM to 1PM."

Can't make it at that time, sorry to hear that... best of luck finding a place. Magically most people can suddenly make it during that time.

Austin F. · Answer

"Out of respect for the current tenants, there are no showings without approved application, there is a $40 application fee which will be credited towards your first months rent if/when you sign a lease."

That's my old line if you want to be nice and credit the app fee, the market changed here and the fee is not credited anymore.

I also provide a google drive link with 20+ photos of the property, and a few video walk throughs so the prospective client has a good idea what they are getting into.

I've also found everyone wants a showing, serious prospects will have a few good relevant questions first. I usually say "before you submit an application do you have any questions about the property?" Especially to Zillow leads where they can request a showing and an application in one click. Other listing sites have fewer false leads, or are easier to filter right away.

Wesley W. · Answer

Here is my system that I have shared on the forums previously:

It all starts with online ads, within which are several questions I request be answered in their response to my ad. Here they are:

1.) Your first and last name, email address and phone number2.) Total number of people that would occupy the apartment3.) Proposed pets (size/breeds)4.) Monthly pre-tax income for household5.) Date you wish to move in

6.) Do you currently have enough funds to pay first month’s rent and a security deposit?

(I used to collect last month's rent as well, which I highly encourage, but it recently became prohibited in NYS.)

Next, here's a canned email response I use for everyone who answers my ad with the aforementioned questions answered. If they don't answer my questions, I know they have not read the ad and are just clicking and "tire kicking" or they lack the intellectual focus for me to have any business relationship with them.I market on Craiglist and Zillow and get great leads from both in my market. Problem with Zillow is they have this annoying "1-click reply" where people can just click on your ad without reading it and you get an automated message "Joe is interested in your apartment at 123 Main St." To these responses I just cut/paste the ad narrative into an email reply. This is a waste of my time, but I am stuck with it if I want to market through them.

Here is the email response:

Thank you for your interest. We have a minimum income requirement to qualify for this unit (3 times monthly rent); based on your email, it appears you meet those qualifications.

Regarding pets, we allow cats and most dog breeds except for the following:

• -any breeds/mixes known under common parlance as “Pit Bull”
• -Rottweiler
• -Doberman Pinscher
• -German Shepherd
• -Alaskan Malamute a.k.a “Husky”
• -Chow Chow
• -Great Dane
• -St. Bernard
• -Akita
• -Wolf hybrids

Unfortunately, these are prohibited for insurance reasons. Keeping pets requires a one-time nonrefundable pet fee of $200 (per pet) as well as an additional $20 monthly rent for each approved pet. As pet lovers ourselves, we typically like to meet your pets at some point in the process, too.

Our tenants’ safety and the peaceful enjoyment of their home is important to us, so we do a credit/criminal background check on all applicants aged 18+. Big concerns are bankruptcies/repossessions/evictions and crimes against people/property. We can provide a complete list of our qualifying criteria upon request. If you don't foresee any major stumbling blocks (or, if you do, and would like to discuss further - we can certainly do that), I'd be happy to set up a showing for you. Let me know what you think.

As a matter of information, smoking is prohibited inside our rental units.

If you decide that the apartment would meet your needs and wish to proceed with the application process, a “deposit to hold” binder equal to a month’s rent would need to be collected at that time. This holds the unit for 5 to 7 days until the lease signing, and once the rental agreement is signed this becomes the first month's rent. At the lease signing, you will need to put down another $1650, which will be the security deposit ($825) and last month's rent ($825). So, the total move-in costs (not including pet fees, if applicable) would be $2475, all paid prior to lease signing.

Also, we would need copies of the two most recent pay stubs and photo ID for all applicants aged 18+ (I can scan at the showing) to begin the verification process, which only takes a few days.

Since choosing a place to live is a very personal decision, please feel free to do a “drive by” of the property, located at 123 Main St, so you can get a “feel” for the neighborhood. (I will ask that, out of respect for our current tenants’ security and privacy, to please wait until your showing appointment before walking the property.)

If everything above is agreeable to you, let me know your availability and I'd be happy to take you through the apartment.

Thank you, and I look forward to meeting you at the showing!

Note how I reiterate the qualifying criteria as well as itemizing what the move-in costs will be. I also suggest a drive-by so they are not unpleasantly surprised by the neighborhood when they to the showing, and just keep on driving by anonymously as I wait outside. This email gives people yet another opportunity to self-select out of the application process based on my expectations and criteria before an actual showing in scheduled.

If they do request a showing, I send them this email:

Hi Sally,

Please read this entire email.

How about a showing on Thursday at 7 pm? If that works for you, please reply to this email within 24 hours to accept this appointment and I will then add you to my showing schedule.

Also, as a means of courtesy to both our busy schedules, please confirm via text or phone call at least 2 hours prior on the day of the showing to my cell phone (area code and number).

I’ve also attached our rental application. I will have hard copies at the showing, but if you print and fill them out prior to the showing, this would save us both some time should you want to expedite your application in the process.

I look forward to meeting you on Thursday!

If they have not confirmed an hour prior to their appointment, I send this text to their phone (which was required as part of their contact information I required in the response to my ad):

As I had requested in my email, you have not yet confirmed your apartment showing for this evening, scheduled for 7:00pm. If I don’t hear from you in the next 10 minutes, I will assume you aren’t attending and I will move on to my next appointment.

Using this system as dramatically reduced any wasted time I used to endure as part of the showing process as well as giving me data about their timeliness/responsiveness/respect for others' time.

I also schedule showings consecutively, 15 minutes apart.  I do this both for my own efficiency as well as perceived scarcity for the prospects.  They see someone leaving as they arrive, and as I walk them out from the showing another "competitor" is pulling up.  I find this helps some candidates get more resolved about wanting the apartment.

At the showing, I collect their completed application (sent via PDF prior or filled out on premises), scan their photo ID and last 2 pay stubs.

Then, I do some digging around online (social media, court records, Google) and if it looks like they are representing themselves to me accurately, I contact them to set up a "contract to hold" meeting - usually the day after the showing since qualified applicants need to be "closed" ASAP. (During this whole time I continue to market/show the unit. I continue to funnel people into my process until a lease is signed.) Note that I do not put a lot of time into due diligence until the "contract to hold" meeting, when they put some skin in the game.

At the "contract to hold" meeting, I collect an amount equal to one month's rent. I ONLY accept cash or a check drawn on a local bank (so I can walk it in and get cash that same day). We sign an agreement that commits their non-refundable payment for a brief period (usually 5 days), during which time I call landlords, employers, and run background checks. If there is anything untoward, I have a 7 day right of rescission and I give the money back. I absorb the background check fee as it is a small price to pay for dodging the bullet.

Once background checks are complete, we meet again for a lease signing, at which point I collect the rest of the move-in fees. I only give them a short time (about 5 days) to meet for the lease signing before they lose their exclusive rights to the unit, so this prevents someone from dragging their feet after they've signed the contract to hold.

Once the lease is signed, I take down the ads and send out emails to people in mid-marketing flow letting them know that the apartment has been rented but I will reach out if something falls through.

Adam Martin · Answer

I like to post mid week and set up blocks after I prescreen over the phone and schedule them back to back in 30 minute increments.  I meet with prospects 1 on 1 as it is shocking some of the things they tell me while viewing and a valuable screening tool and I’d miss that with an open house.  I am also about 80-90% done but if someone no shows I clean windows or do yard work so time isn’t completely wasted.  If I schedule a 1 off after work they know they have to text me that they are still coming and if they don’t I don’t show.  Occasionally people no show and while frustrating they weeded themself out.  If you let me know ahead of time that’s fine and things happen.  When you no show and then try to reschedule I just say no.

Chris Seveney · Answer

@James Bartlett

I would hold an open house and let people know to come better 10-12 as an example.

I did not do individual showings

Austin F. · Answer

I may pass up some good tenants this way, but I manage remotely, and pay someone to do my showings, so the fewer I have to do the better. I also do year leases starting in May, and do my leasing in February, so there is plenty of time to sift through candidates. I try not to accept more than one application at a time, and 95% of the time the first applicant gets the unit.

Faruk Al-Hassan · Answer

In addition to prescreening, I inform people when scheduling they'll be sent a confirmation text 1 hour before the showing which must be responded too. You'll still have some people who ghost or make an excuse to cancel, but at least you can save yourself a trip. I've never had a no show while receiving the confirmation response from prospects.

Trenton Miller · Answer

I schedule showing days.  Typically I do this on a Saturday as most people work Monday through Friday.  I do not do appointment showings for self-managed properties.  My mindset is if they can't make it to the showing when it is available, they must not be that serious.

Strategies for avoiding no show tenants for property showings?

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