Priority of Tenant Applicantions

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Priority of Tenant Applicantions

Derek Caffe
Real Estate Broker · Austell, GA · Member since 2013 · 72 posts · 24 votes

I have an apartment unit for rent. I keep marketing the property and accepting applications until someone completes the entire application process.

The first couple who applied with us this past Friday has paid their application fee, had background check ran, and submitted ID, but still hasn't provided two months past pay stubs because they recently moved from out of state.

Now another couple views the property today and completes the entire application process outside of signing the actual lease and paying the first month and security deposit.

My thinking is I'll take all applications until the first qualified tenant completes the entire application process. I feel it's understood that paying the application fee and submitting documentation doesn't stop the marketing process until you have a complete application. Therefore, no warning is necessary to other applicants until someone completes the process and the property is no longer on the market.

My wife thinks this is wrong and that I should give the other applicants who started the process first a warning. I don't think it's warranted and that it's implied that the property management will keep taking applications until the first qualified tenant finishes.

What are your thoughts and experiences?

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Matthew Olszak
Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
9y

@Derek Caffe You are right. So many tenants straight lie and submit an app thinking that they'll look honest enough that we won't check their backgrounds/evictions/credit/income. Others will submit 10 apps across the board then go with their best option and ignore the rest without the courtesy of saying they found another place.

Don't take it off the market until its rented with first month's rent, security deposit, and signed lease in hand. If any of those things are missing, its not a deal yet. My very first strong applicant - I called and called and called and was ignored, wasted 5 days trying to be nice. If they want it, they'll get the required items in asap and respond asap. On my last rental I was taking apps 15 mins before my signed lease/first months rent/deposit walked back in.

Just be sure to deal on a first-in-first-out basis with applications in case you have multiple people approved. Everyone gets processed in that order, everyone gets approved in that order, and everyone has a chance to immediately turn in their required items in that order.

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  • Matthew Olszak
    Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
    9y

    @Derek Caffe You are right. So many tenants straight lie and submit an app thinking that they'll look honest enough that we won't check their backgrounds/evictions/credit/income. Others will submit 10 apps across the board then go with their best option and ignore the rest without the courtesy of saying they found another place.

    Don't take it off the market until its rented with first month's rent, security deposit, and signed lease in hand. If any of those things are missing, its not a deal yet. My very first strong applicant - I called and called and called and was ignored, wasted 5 days trying to be nice. If they want it, they'll get the required items in asap and respond asap. On my last rental I was taking apps 15 mins before my signed lease/first months rent/deposit walked back in.

    Just be sure to deal on a first-in-first-out basis with applications in case you have multiple people approved. Everyone gets processed in that order, everyone gets approved in that order, and everyone has a chance to immediately turn in their required items in that order.

    1Reply
  • Penny ClarkPro Member
    Sacramento, CA · Member since 2014 · 513 posts · 319 votes
    9y

    @Derek Caffe, stand your ground on this one because you are right. Any vacant property should be marketed until you have the signed lease and security deposit in hand. Applicants are not first come, first serve, but first come, first qualified - that means you are able to verify ALL needed information (credit, income, rental history). In these situations, you gotta remember the acronym SEP or "somebody else's problem." It is your job to verify.  It is not your job or responsibility to chase down your applicant's information. For example:

    - applicant doesn't have his previous landlord's contact information - somebody else's problem

    - applicant couldn't make appointment to showing because car broke down - somebody else's problem

    -boyfriend applicant has supplied his information but his girlfriend who will also be named on the lease has not - somebody else's problem

    - applicant can't find most recent pay stubs because they just moved from out of state-somebody else's problem

    Give strong consideration to those applicants who can get you what you need quickly because often they are the ones who make the best tenants.

    1Reply
  • Derek Caffe
    OP
    Real Estate Broker · Austell, GA · Member since 2013 · 72 posts · 24 votes
    9y

    Thanks @Matthew Olszak and @Penny Clark, my wife just better explained her point of view to me. She says makes sure everyone knows the application fee is non-refundable (I thought this was a given) and put it on our website along with what it exactly means when I say we continue marketing until we receive a "completed application."

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  • Nicole C.
    Realtor and Investor · North Hollywood, CA · Member since 2015 · 49 posts · 25 votes
    9y
    I ask for a 500.00 hold which goes toward the deposit. The first applicant to turn in the application and hold gets the unit and I take it off the market If the applicant fails to provide all necessary paper work or decides to not get the unit they forfeit there 500.00 :-)
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  • Matthew Olszak
    Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
    9y

    @Derek Caffe Awesome that you both are on the same page. Another thing - I make sure to verbally convey before handing over the paper application that its FIFO and the app fee is non-refundable, with a stern look. If they just talk over me with "yeah ok yeah yeah, I'll have it back tomorrow", I know I just wasted the paper. Applicants who are ready/willing usually have the info with them or will ask at least how to return the app so I get it quickly. The whole process of this lends importance to the application so they see it isn't just a formality.

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  • Gail K.
    Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    Until the ENTIRE screening process is complete (the means the applicant has provided ALL the required information and has met your screening criteria), the lease is signed AND the security deposit and first months rent (plus pet fee if indicated) is provided, the rental unit remains on the market.

    Early on I had an applicant (a 100 percent service connected veteran) sign a lease but ask me to hold off on paying the security deposit and first month rent until the first of the month when he moved into the area.  Stupidly, I agreed and in the following two weeks I turned away three other interested couples.

    On the first I waited for him...and he never showed.  Never responded to my phone calls.  Finally contacted him through one of his references and he answered his phone not realizing it was me.  Turns out he found a less expensive rental and signed a lease with them.  Was not man enough to let me know.   When I pointed out he had a legal contract with me his comment was "you do what you have to do".  I did; I filed an eviction against him.  Big deal.

    About the only pleasure I got from this was that later he was admitted to the medical center I worked at.  I am a dietitian (since retired) and I did enjoy planning this guys meals for him during his stay there.


    Gail

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  • Derek Caffe
    OP
    Real Estate Broker · Austell, GA · Member since 2013 · 72 posts · 24 votes
    9y

    @Nicole C. $500!! Yowzers!! How long do they get to complete paperwork?

    @Matthew Olszak I use Rentec Direct so I just have everyone apply online. I mention it to every prospective tenant during the viewing regarding applications, but my wife (corporate lawyer) says it creates a potential liability if not on the website. So here I am at midnight create a FAQ page. lol

    1Reply
  • Nicole C.
    Realtor and Investor · North Hollywood, CA · Member since 2015 · 49 posts · 25 votes
    9y
    They get 10 days to get everything together otherwise they forfeit the holding funds. They also agree and sign to this condition
    0Reply
  • Sarah Ziehr
    Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    9y

    Keep the process going until one person gets their stuff in order and you find it acceptable. In a hot market, sometimes there are multiple applications to choose from. You don't owe anyone anything. May the best applicant win. 

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