What to honor for changed rent ad?
Hello,
I am wondering how this would work. Are there rules, particularly in Pittsburgh, PA, around what you must honor for prospective applicants if you change your rental rates and concessions? If for example you reduce the rent and remove a concession (e.g., last month's rent free)), and someone starts an application at the old advertised higher rental rate + concession but then completes the application after the change (lower rate and no concession), is there a rule for which you must honor? If people are notified of the change before they complete their application and still opt to complete it, does that make a difference?
#4 General Landlording & Rental Properties Contributor
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- Los Angeles, CA
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#4 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
Prices and product availability change all the time. Generally, until the lease is signed by both parties, anything can change.
If you're charging an application fee, expect to get pushback from tenants if you change the terms after they pay it. You'd likely have to refund the fees.
Quote from @Kadia Lawrence:
I'm not aware of any rule in any state. However, it's good practice to honor what you've offered. If they started the application before you made any changes, then you should honor it at the rate they were offered. If you don't, then it smells like a bait-and-switch scheme.
If the previous ad was priced too low, you could contact the applicant and explain that it was a mistake and you are unable to honor it. Remove the property from the market for a few days, then put it back on at the correct rate.
Quote from @Greg M.:
Prices and product availability change all the time. Generally, until the lease is signed by both parties, anything can change.
If you're charging an application fee, expect to get pushback from tenants if you change the terms after they pay it. You'd likely have to refund the fees.
Thanks! No completed applications or fees paid yet.
Quote from @Nathan Gesner:
Quote from @Kadia Lawrence:
I'm not aware of any rule in any state. However, it's good practice to honor what you've offered. If they started the application before you made any changes, then you should honor it at the rate they were offered. If you don't, then it smells like a bait-and-switch scheme.
If the previous ad was priced too low, you could contact the applicant and explain that it was a mistake and you are unable to honor it. Remove the property from the market for a few days, then put it back on at the correct rate.
Thanks!! Good thoughts. In this case, the price would be decreased but the incentive removed. Also the person paused on their application for a few days before completing it, including before doing the background check and paying the fee.
Quote from @Kadia Lawrence:
General rule of thumb: until you have a complete application, you don't have an application. I don't consider an application received until I have all the supporting documentation, picture ID, and payment. If two or more people are applying together, I don't consider the application complete until all members of their party have submitted complete applications.
I see no reason why you can't change the marketing.
Quote from @Nathan Gesner:
Quote from @Kadia Lawrence:
General rule of thumb: until you have a complete application, you don't have an application. I don't consider an application received until I have all the supporting documentation, picture ID, and payment. If two or more people are applying together, I don't consider the application complete until all members of their party have submitted complete applications.
I see no reason why you can't change the marketing.
Great, thanks!