Investor · Waterford, WI · Member since 2016 · 89 posts · 30 votes
I am in a unique position I think compared to some. I have a few potentially "good" tenants. I am trying to pick tenants that will be there for more than a year while being a good tenant. I eliminated one because he wants to buy a house in a year once his divorce is final. He makes plenty of money and still has the credit to do it. The other 3 all make my 3.5x gross no criminal no evictions decent credit (620-650 for tenants). After doing my screening they all qualify. My gut says go with a particular tenant but I do not have any screening criteria to definitively deny the other 2. What do I tell them? The first come first serve is out the window because one of them knows they were first to see it. Any advise would be great.
Investor · Charlotte, NC · Member since 2016 · 374 posts · 189 votes
9y
I am going to assume you are new to this. You about an inch from running afoul of a discrimination lawsuit.
You need to have clear, articulable (preferably written) requirements of your rental criteria.
You need to processes each application as you receive it.
Once one is approved, you offer the rental to the person.
You are a treading a dangerous line if you publicly advertised this property for rent. If you rent to a white person and a minority applied first, they can easily win a discrimination case against you. You would be totally and rightful screwed no matter what your race or ethnicity is. Do not try to cherry pick the best applicant. Pick the FIRST qualified application by gong in order of applications received. You will save yourself a ton of trouble in the long run.
Check the laws in your area to make sure there isn't a requirement on how you choose tenants. Some areas require that first person to qualify gets the lease. Otherwise I would try to pick the person you think you'll benefit the most from.
Investor · Charlotte, NC · Member since 2016 · 374 posts · 189 votes
9y
I am going to assume you are new to this. You about an inch from running afoul of a discrimination lawsuit.
You need to have clear, articulable (preferably written) requirements of your rental criteria.
You need to processes each application as you receive it.
Once one is approved, you offer the rental to the person.
You are a treading a dangerous line if you publicly advertised this property for rent. If you rent to a white person and a minority applied first, they can easily win a discrimination case against you. You would be totally and rightful screwed no matter what your race or ethnicity is. Do not try to cherry pick the best applicant. Pick the FIRST qualified application by gong in order of applications received. You will save yourself a ton of trouble in the long run.
You contact them and simply state that the vacancy has been filled. Best of luck in your search.
There is no reason to give any further information or a explanation. If they ask and you wish to explain you simply say you chose a more qualified applicant. You do not give any details on "more qualified".
Investor · Waterford, WI · Member since 2016 · 89 posts · 30 votes
9y
I received all the applications during an open house style showing. I processed them all arguably at the same time although the tenant I want to choose did process her smartmove screening first. So she was the first one that was accepted. As for Fair housing they are all caucasian no disabilities, they all have kids, so I do not think I am violating any Fair Housing Laws. I will tell the others that there screening came back at a later time and I chose the first one that came back acceptable. Why can I not choose someone based on whether or not I think they will stay the longest?? How do you set a screening criteria for that??
Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
9y
It seems like you're doing it right. You never know how long someone is going to stay. If they are all reasonably qualified, I would go with whoever made the best impression since you will be dealing with them on a monthly basis, hopefully for years.
You may choose your tenants using any criteria you wish as long as it does not violate the fair housing police although even that decisions is up to you.
You are not obligated to screen in any particular order and the reality is that you, as a responsible landlord, choose the most qualified and the best fit for your needs. If a applicant in all ways appears to qualify but you are uncomfortable with that person for any reason you have the right to reject their application. Landlords must understand that their first obligation is to their business and their tenants. Applicants do not have any special rights outside of the obvious discrimination categories. However even in that regard a more qualified applicant, based on the landlords criteria, will still always be chosen first.
Provided you do not discuss with rejected applicants why someone else was chosen over them you may select whom ever you wish for what ever reasons you deem to be important.
Landlords that operate and select tenants out of fear of having to dealing with rejection of applicants usually make bad choices and do not last long in this business.