Too much interest in rental... how to choose?

General Landlording & Rental Properties
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Too much interest in rental... how to choose?

Cristina Zulaica
Tampa, FL · Member since 2015 · 2 posts · 0 votes

I've gone through the search to find similar discussion topics on this subject, but have read some conflicting points of view, so wanted to post my situation and get some feedback!

I became an accidental landlord and recently put my house on the market to rent out. Unique little cottage on a huge corner lot, lots of little perks, charming historic aesthetic. Turns out it shows pretty well online because I have had a complete inundation of interest in the past 48 hours. Probably 60+ leads, pre-screened and scheduled 15 showings over the course of the next 5 days (through the weekend). It has been difficult to even keep up with communications and scheduling while balancing work and training time.

I had the first round of showings last night, had 5 different couples come by in an hour span to look at the house. Everyone who was scheduled showed up, extremely motivated, seem qualified after asking the same questions to everyone, so I provided a link to the online application and encouraged everyone to apply.

So far I have gotten 3 applications, all qualified, but I still have around 10 more showings! How should I handle the situation and be as fair as possible? I have seen some people say to go with the first qualified applicant who applied, some say ask for the highest rent offer, etc, etc. Inventory for SFH is extremely low in this area, and from what I have heard from the couples last night there is not a lot of good quality homes like mine on the market.

Any suggestions? I want to be as fair as possible but I regret to think that I priced the home too low (Tampa, FL - $1300 a month, includes landscaping that I pay $120 a month for...). My coach is an attorney and works in real estate so I am getting advice from him as well. Any other points of view would be greatly appreciated!

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Jeremy Pace
Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes
10y

@Cristina Zulaica

You're on the right track.  When I show rentals, I schedule as many people for the same time as possible ... that way I can walk them all through at once, and give them all the same speech.

Applications for rent are considered in the order received.  If they pay the app fee, I'll run it.  Once they are approved, the first person to come to me with the deposit money gets to sign a lease.  So I have a stack of apps, I make everyone sign in name and number, and then I go home and run the apps.

In almost every case, this works really well.  I also discourage people from coming to the viewing until they have all their documentation (HCV specific ... I don't want to deal with a tenant who hasn't told their current landlord they intend to move).

Obviously, check to make sure your rent isn't toooo low, but the worst case is you learn a hard lesson about anchoring, and you adjust the rent next year.

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  • Jeremy Pace
    Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes
    10y

    @Cristina Zulaica

    You're on the right track.  When I show rentals, I schedule as many people for the same time as possible ... that way I can walk them all through at once, and give them all the same speech.

    Applications for rent are considered in the order received.  If they pay the app fee, I'll run it.  Once they are approved, the first person to come to me with the deposit money gets to sign a lease.  So I have a stack of apps, I make everyone sign in name and number, and then I go home and run the apps.

    In almost every case, this works really well.  I also discourage people from coming to the viewing until they have all their documentation (HCV specific ... I don't want to deal with a tenant who hasn't told their current landlord they intend to move).

    Obviously, check to make sure your rent isn't toooo low, but the worst case is you learn a hard lesson about anchoring, and you adjust the rent next year.

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  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    10y
    First come seems fair but sometimes the first to apply is not the first to call or the first appointment. If I received five apps the same day, I would go with most qualified. I would put future showings on hold and run with applicants you have. I would not bid up the rent. That may not be legal in some areas and if you didn't advertise it like that, it could scare off applicants. Hard to say on price. Maybe at $50 more you may not have gotten any calls. I would rather rent it quick because one month of vacancy costs you more than you would get over two years charging $50 more.
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  • Adam Bontrager
    Investor Relations Manager · Cleveland, OH · Member since 2015 · 117 posts · 50 votes
    10y

    @Cristina Zulaica

    You'll generally want to process the applications in the order they were received.  Once you have an application that meets your criteria, you can notify the applicant and schedule them to bring their deposit and sign the lease.  

    There's no benefit to you or the other applicants to continue showing the house.  You simply call them and let them know that the house has been rented.  If you have other vacant rentals, this is a great time to offer to show them one of your other similar properties.

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  • Cristina Zulaica
    OP
    Tampa, FL · Member since 2015 · 2 posts · 0 votes
    10y

    Thank you so much @Adam Bontrager @Joe Splitrock @Jeremy Pace for the advice!

    My coach mirrored the advice to process applications in the order received. I have cancelled all future showings and will be reviewing the 3 applications that I received last night and will go from there.

    Thanks again. :)

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  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    10y

    Related topic: sounds like you are under market. I had one advertised last week. Phone rang off the wall starting about 6:15 AM. Raised the price within the hour and phone STILL ringing off the wall! May raise it again when I start showing it. I had one person question the price increase. I stated that the market determines rental rates, not me, and that I am simply going to do what the market dictates. 

    As far as who you should accept, first and foremost remember the laws regarding discrimination. You CANNOT base your choice on any of the protected classes. On my last rental, we had 3 apps within 30 minutes. We shut down showings after that. I looked at all 3 and tossed one that appeared to have very poor credit. Then we were down to two. I called one person asking if I could come by and talk to them. My intent was to view their home, see if it was clean and organized, and if so, tell they we were going to run their application and deposit their check for backgrounds, etc. Turned out they were not going to be home. I then called the second person and they said come by. When we got there, the place was immaculate. I knew I wanted them, and the bonus was no pets. My decision was not based on any factor that would violate fair housing. Keep in mind the acronym FRSHCRN. Those are protected classes. 

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