showing, application, credit check, in what order?

Question

If a potential tenant has seen the ad on Zillow or craigslist.

Do we setup a time to see the house, at that time give them an application form?

The application is a template from Zillow, just have personal info and bank account balance(s), have you been evicted, etc.

The part I am most confused about is the credit check, when do you run it and who pays for it?  How about a refund if they don't qualify?

Which website do you recommend to do credit AND background check?

What about verification of income?  Do you ask for a last year's W2?

Thanks

Jennifer Lee · Answer

Do we setup a time to see the house, at that time give them an application form?  I would setup a time, usually I like to do 1 on 1 showing, or space them in 30 mins interval, and let them know other ppl are seeing it.  IF they are interested you can hand  them an application.  I use mysmartmoves.com, we can do it on the spot if they are interested, if they have a smart phone.

The application is a template from Zillow, just have personal info and bank account balance(s), have you been evicted, etc.

That's fine, I download one from the internet.  Its good to have it on paper bc mysmartmoves.com doesnt give current landlord info and referral and drive license details etc

The part I am most confused about is the credit check, when do you run it and who pays for it?  How about a refund if they don't qualify?

Credit check, I use mysmartmoves.com. It has an option of TENANT pay or LANDLORD pay. If I gave them an application, I ask them to give me $35-40, and I pay,  If they have Credit Card, all I need is their email, and I start the app, they pay and I get the report, it takes 2 mins. If they don't qualify, nothing... they are out the FEE

Which website do you recommend to do credit AND background check?

I use mysmartmoves.com for credit and background.  i also go to the FREE Public state judicial site to check eviction (that is what is good about the paper application, you can chk their references) and Police Site for criminal $10 in my area

What about verification of income?  Do you ask for a last year's W2?

YES, that after they qualify the credit check and we are talking lease

Jennifer Lee · Answer

credit score and income.

there is a balance.

I had ppl with 700- 800 score, but it's bc they are new, and has no income.

I had ppl with 400 score but makes 3 to 4x income

and sometime ppl have lower score bc they have issues. divorce , bankruptcy , fixing credit...

so listen to their story and you have to make a judgement.

also with multiple group. like students, or couples. they can't rent as an individual. but as a group they qualify.

Account Closed · Answer

@Jeremy H.

Is credit score of 675-680 + a good criteria?

I don't typically address credit score in criteria. It really comes down to if they can pay.

Our criteria: Gross income (for the household) of at least 3x monthly rent - verified by 3 most recent paystubs. Proof of employment for at least 2 years. No open BK, No Felonies, No previous evictions - no exceptions. Rental verification from their previous landlord. We run applications/background checks for occupants over the age of 18.

If you have any other questions, don't hesitate to ask!

Jim Adrian · Answer

I think other have addressed the process very well.  On the credit check make sure you look for any patterns in how they are late or anything like that.  If you find a pattern it wont change as its their habit or lifestyle.   I do provide them with a copy of the report as they paid for it.

As for other sources you can use:

Background search: www.tenantbackgroundsearch.com

Online payments: www.erentpayments.com

Cozy is another popular one with ppl on the site.   https://cozy.co/

Dustin Beam · Answer

@jeremy h.

I'm in the process of learning this process as I've got 3 empty units that all went empty at the same time.  And this is my first* time filling apartments.  So needless to say it can be stressful.

But to the point,  I've decided to do it this way.

1. Show the apartment in open house setting.  Why? I had an appointment with 5 or 6 people last weekend,  one person showed.  I will only spend 30-45 minutes there now.  Whoever shows,  shows.

2. If they are interested,  I will give them an application there.  They can fill it out then or mail it to me.

3. If they are really interested,  I will offer them a background check (currently through mysmartmove). I now will give them 24 hours to complete that if they want it.  I've had people say they want one,  but then just don't fill it out.  I won't wait around anymore.

4. After all that,  I will follow up with past landlords and employment,  along with proof of income,  etc.  I simply won't do any legwork outside of showing the apartment until they submit a background check.  I am up front about what will get them disqualified,  so if they were honest with me,  it shouldnt' be a problem.

5. If everything checks out,  we can meet to sign a lease.

Hope that helps,  it certainly isn't the only way,  and I'm sure other people with far more experience could offer conflicting advice.  Good luck!

*I have placed a tenant but he came to me without me advertising or anything, so that was easy.

Yvette M. · Answer

I belong to an apartment association and I can run my own background check from my desktop.  Prospect tenant pays for credit check.  I think the max you can charge for a credit check in CA is $45.99, but you have to provide the applicant with a fee breakdown.  I charge for the actual cost of the report and the rest is admin fees.  I also do drive-bys to previous residences listed on the application to talk to neighbors.

Yvette M. · Answer

I phone screen applicants then out of that group I invite them to an open house for a one or two hour window.  I don't stagger appointments; it's y'all come.  Prospects see the competition.  I don't give paper applications at the showing, but I do take e-mail and phone numbers of those who wish to proceed.  I email an application to my number one pick and then go from there.

I review the application and get as much free information as I can -- calling references, prior LLs, search property records, etc.  If that goes well then I do background/credit check.  It takes me about a week to get through the process.  I tell prospects up front of the time frame, so anybody in a rush to move in can look elsewhere.

Jeremy H. · Answer

Hi. Is credit score of 675-680 + a good criteria?  Also regarding the 3x rule.   If the rent is $2000 a month.  They must be making $6000 a month before tax (gross income).  Is this correct?

Rick S. · Answer

@Jeremy H. if you haven't already make sure you determine your criteria, such as 3 times the rent in income, no evictions, etc. so that you can provide your criteria to the applicant before they start the application and background check.  This way you pre-screen the applicants so they don't start the process if they don't qualify.

You will only want to run a background check on the applicants that you are seriously considering.  So only serious candidates will pay the screening fee and others that don't qualify won't incur an application fee.  I definitely recommend SmartMove also as it makes it easy to have the applicant pay the screening fee if they get that far in your process.

Deanna McCormick · Answer

Our process was pre screen over phone, give as much details as possible and give rental criteria.

Set appointment for showing, verify ID, take down phone number and their address, when they came.

Give tour of apartment.

Ask for them do do application, application fee was paid at that time, we usually only took money order for the application fee so if they were not approved they couldn't stop payment on the check.

We were usually able to run application right away and give results if approved If for some reason we could not do that and the applicant was strong, I would always pre sign all the lease paperwork pending my signature for confirmation once screening was completed and have them leave a check for holding fee/ security deposit.

If for some reason screening came back negative I called and said Im returning your holding fee/security deposit. Otherwise I would say I've got your signed lease do you want to pick it up so can I mail it.

I tried to schedule as many showing as possible for the closets time frame and always confirmed appointment prior to leaving for the property.

If your doing a online application your procedure will probably be different but I never let someone leave the showing that's interested and has left a application without have the lease pre signed pending final approval.. I don't want them shopping down the block for another apartment.

showing, application, credit check, in what order?

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