Rejecting Prospect Tenant (Non Refundable Application Fee)

Rejecting Prospect Tenant (Non Refundable Application Fee)

Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes

Should my rejection letter read something like this:

We're sorry to let you know that the property at [address] is no longer available. At this time we've rented this property to other applicants. Thank you.

Do I need to add a reason why their application was declined? In this case it's income and employment is 3 months. 

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Curtis BidwellPro Member
Rental Property Investor · Olympia, WA · Member since 2014 · 777 posts · 744 votes
11y

Here's the content of our response form: Just check the box and send the notice! 

RENTAL APPLICATION REPLY

(Adverse Action Notice)

Date______________________

Attention: ___________________________________________________:

Thank you for your application(s) to rent one of our rental properties. We regret that we

were not able to rent to you at this time, for the following checked reason(s):

 The rental was committed to another party at the time we received your application.

 You indicated disinterest and/or declined our offer of the rental unit.

 You tentatively qualified, but the rental was given to another party with equal or

better rental qualifications, or to another qualified party that applied earlier.

 You needed to meet our conditions on rent, deposit, co-signer, use, or other.

 You did not provide requested documentation in a timely manner.

 Previous landlord/other references failed to provide needed timely information.

 We were not able to hold the rental until the date you were able to pay the deposit

and/or initial rent, assume tenancy, or meet other stipulated conditions.

 You did not meet requirements on pets, occupancy, smoking, cars, or other terms.

 You did not meet our standards for references, income, felony, credit, history, etc.

 Your application was denied based upon a written credit report with optional FICO

score; directions to receive a copy may be obtained by contacting us below.

 Your consumer/credit report did not contain sufficient information.

 You submitted an incomplete, inaccurate, unclear, or unsigned application.

 You did not provide a phone number, call back, or return our calls or emails.

 You did not submit the required screening fee.

 Other_____________________________________________________________.

Submitted Screening Fee:

 Since your submitted fee was used in the processing of your application, we regret

that we are not able to return any back to you

 Since your submitted fee was not used in the processing of your application, we are

returning/refunding your payment totaling $ _________________.

Federal and State guidelines limit us from giving further details other than name, address,

and phone number of any consumer reporting agency resulting in denial (by contacting us

below for a free report copy with right to dispute). Thank you for your consideration.

______________________________________________ _______________________

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  • Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes
    11y

    It's always good business to treat people with respect.  I would tell them why you choose to go with another applicant.  And if you have the time (most people don't) its good to speak with the rejected app by phone and directly tell them "thank you for you application but..." 

    Its a small world and you will have other homes to rent out in the future.  Be professional business-like with everyone.  That same rejected app may tell 10 friends- to not waste their time applying when you have another property for rent.  Save you some time.

  • Laurel, MD · Member since 2015 · 101 posts · 30 votes
    11y
    Originally posted by @Ayodeji Kuponiyi:

    @Jay C. I don't understand. I didn't screen multiple parties at once. I told the couple that I would have to run a background check on both of them. The lady dropped her app a week later than we agreed upon (I had to call her to see if she was still interested) and I told her immediately that her boyfriend's app was missing. She informed me he would fill it out and 10 days passed with no response. I even called/emailed her to 3 days after I informed her that I need her boyfriend's app and no response. 

    I already ran the girl's background and called her employers and what she had on her app didn't match what her employers told me. With all this I simply told her "Thank you for your interest at 123 Main Street but your application was rejected. Best of luck on your search."

    None of the information necessary to reject this application came from the background check. Even if the employer verification had been ok you still didn't have all the information you needed because you didn't have the boyfriends app.

    There was no need to run the background check and no need to waste the tenants money  because neither you nor she benefited from it.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    11y
    Originally posted by @Aly W.:

    Like others, I don't take a background check fee until I approve them based on what's on their application. I don't want anyone's money if I can't verify their employment (by actually speaking to their manager or HR), or their previous rental history (by actually speaking to their current or previous landlord) and that's what I tell them. ...

    These days, lots of companies are using third party employment verification by operations like "The Work Number" (and others), and the fee to be paid to these third parties are like $20 give or take. So are you absorbing that expense, or charging for that?

  • Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    11y

    I had one tenant a few years ago whose employer used that verification method, and I told the tenant they had to pay for it. I don't remember if they said yes or no, or just never followed through. 

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