I understand how to document applicants who do not meet our criteria, but how do we document applicants who are qualified but not chosen?
The questions is why did you not choose them if they qualified? You need to be very careful because there are "Testers" out there.
We are in the business of renting our rentals out, so why would you not want to rent to them if they qualified?
There is always something in our Rental Criteria for selecting a tenant to disqualify them in some way shape or form. And if they still qualify 100% then, WOW you've got a keeper!
My criteria was as follows:
*If employed, must be employed for at least a year, and make 3 times the amount of rent as income.
*If not employed, must make at least 3 times the amount of rent as income.(From whatever assistance it may come from)
*Must not have any landlord/tenant evictions against you!
*Must have more good credit than bad (Economy is bad so I allowed for that)
*Must have no lawsuits against you.
*If you had a Bankruptcy, must be at least over one year ago that the case was filed and completed.
You should send a denial (thank you) letter and give the reason why they were not selected.
If you pulled credit, by law you must notify them if credit was the reason, the agency information was obtained from and a notice of them having the right to obtain credit information free of charge in connection with the inquiry.
I kept rejected applications for 3 years then destroyed them, look to you state's statute of limitations as to filing any action against you for records to be retained as well as retention periods if you're an agent/licensee. :)
Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com
@Account Closed I guess I should have stated multiple qualified applicants.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!