Online Rental Applications and Refunding Fees

[Yuki Conlon]

Hello BP!

I'm looking for advice from landlords offering online rental applications. The rental market here is white-hot, and properties often have multiple applications submitted before the property is even available for showing. The law states we must consider applicants based on the order in which they were received, and we want to do right by tenants by refunding their app fee if they were not screened.

Option 1: Set up an online app using FormStack or other secure form with SSL and data stored with 256-bit encryption, and on-form payment integrated through a processor such as Stripe. This allows us to screen one (or more) applicant, approved them, and issue refunds to those who were 3rd, 4th, 5th in line, etc. 

Option 2: Use a site like RentApplication.net or TurboTenant.com, which saves me the hassle of processing and annual fees for my FormStack and SSL cert, however that means every tenant who wants to apply will be charged, and most unfortunately will never be considered. 

I've been accepting paper applications with payment by check up till now - I'd love to hear how others are doing this better! Thank you! 

[Chris Herbert]

@Yuki Conlon I don't know the laws specifically for Oregon but can you take a holding deposit first, then have applications filled out and proceed in order that way? That is the way we do it: first applicant to put down a holding deposit (half the security deposit) is first in line. We require a holding deposit before applications and supporting docs are accepted. Subsequent applicants can put down backup refundable holding deposits so if the first hold isn't approved we would then move down the line in order of holding deposit received. Applicant screenings take a lot of time and we don't want to waste time on applicants that aren't serious enough to put down a holding deposit. I would also highly recommend the rental software Buildium. When an applicant fills out an online application, they fill in their payment info with the application but the payment isn't processed when they submit the application only after we process it on our end. That way if there are applications that are submitted but not screened there is no charge to the applicant.