Real Estate Investor · Raleigh, NC · Member since 2014 · 10 posts · 1 vote
I have at least 4 couples who (at least in pre-screening) score almost identically high. I have not yet asked them to apply, and therefore I haven't collected any application fee from them. I don't want ALL of them to unneccessarily pay the application fee and have their background/credit run if i'm only going to pick 1. Should I go with the background check on the first couple and do the due diligence on the references etc. and then move on to the next, and so on and so forth?
First come, first served. I have specific criteria. I process applications in the order there were submitted. The first acceptable candidate is the one I offer the place to. If they want it and give me money, its theirs. If not, I keep going down the list. First one to sign on the dotted line and hand over cash gets it. If I still have other applicants that I've not processed I return those along with their fee.
My concern with processing multiple applications and then trying to choose among multiple qualified applications is that its easy to be accused of discrimination. With a specific, written set of criteria, the first one that meets those and is willing to pay is the one I take. If they don't pass screening, I have a specific reason for rejection because they didn't meet one of the criteria.
I also do not do any sort of "prescreening". When they call I give them the high points of the criteria and ask "will any of that be a problem?" When people show up at a showing I offer them applications and show them my written criteria. Folks who really want the place fill out the application on the spot, I collect their fee (cash only, been burned on this) and note the date and time on the application.
First come, first served. I have specific criteria. I process applications in the order there were submitted. The first acceptable candidate is the one I offer the place to. If they want it and give me money, its theirs. If not, I keep going down the list. First one to sign on the dotted line and hand over cash gets it. If I still have other applicants that I've not processed I return those along with their fee.
My concern with processing multiple applications and then trying to choose among multiple qualified applications is that its easy to be accused of discrimination. With a specific, written set of criteria, the first one that meets those and is willing to pay is the one I take. If they don't pass screening, I have a specific reason for rejection because they didn't meet one of the criteria.
I also do not do any sort of "prescreening". When they call I give them the high points of the criteria and ask "will any of that be a problem?" When people show up at a showing I offer them applications and show them my written criteria. Folks who really want the place fill out the application on the spot, I collect their fee (cash only, been burned on this) and note the date and time on the application.
When you meet them to show them the house, usually at least one will be a no show. The others, make sure you glance in their car before they leave. If the inside of their car is covered in trash, it's safe to assume your house would soon be too, if you rented to them. If possible, run a criminal check on not only the signing tenants, but any teenage kids they have as well. A teenager in a gang can do more damage to a property, than late or missed rent.
First qualified tenant gets it, like @Jon Holdman. I pre-screen on the phone to make sure when they can move in, if they have the full security deposit, that they understand they'll need to be approved by the condo association after I approve them, and that they'll need renter's insurance. I make sure they know the pet policy and that they'll have to provide pay stubs, ID and the background fee in a money order.
Very rarely do I have identically qualified applicants. Someone will have an issue with the move-in date, the deposit, etc.
I get applications from everyone, score them based on info I can glean from the application and phone calls, and do screening on any that meet my baseline criteria. We use a point system and screen those with the highest points first. If I had four that were close in points, I would screen them all and pick the one that is strongest. But I don't charge for screening, so it is my bottom line, not theirs that I am impacting by running extra screening to get to the best decision.