I have an applicant who has provided false employment information (company has no record and paystub has someone else’s name). There are a few other red flags but bottom line is that we aren’t interested. We sent a generic email basically saying that after review, your application has been denied.
How would you handle this situation? And what if the applicant asks why? Provide a reason?
I think the best method is to send an email and follow it up with a phone call to ensure they've received notice.
The email should be short and professional, without explanation of WHY they were disqualified. Then include instructions on how they can send a letter to request more information.
I manage hundreds of rentals and none of my denials have come back asking for more information on why they were denied.
I agree with the above post you can send what’s called an adverse action letter which basically states that they do not fit your qualifications and thank them for the applying.
I would hope that you have written qualifications of what you will or will not accept because if it does come back to you want to be able to reference those and document everything for your own records and keep files for your protection.
Keep it short and simple
I agree 100% @Steve Rozenberg . I pass out a qualification sheet during showings. That weeds out the people that cannot qualify. I just denied someone that was self employed because they refused to provide the last 3 months bank statements. As long as your denials are based on legal qualifications you are fine. I generally do not send a denial because I rarely have one. The qualification sheet stops them before they waste their time, my time, and their application fee. My sheet also states the application fee is non-refundable and they must sign it.
In your instance, I would send them an email asking more specific questions and provide more docs. If they fail to do so, even more reason for denial.
They lied on the application. End of story.
Short and sweet as @Steve Rozenberg suggested and no need to explain why as @Nathan G. explained.I too have never had someone come back to ask why and that is because like @ John Thedford, I do a supplemental application package that details the qualification criteria (being very careful not to show anything that could be misconstrued as discrimination) upfront.That makes my life so much easier should one come back and want to know why.I work to keep it even across the board and if one does not meet the criteria they just do not meet the criteria.Application fee is also non-refundable, as it covers the screening costs and they are made aware of that in the add and supplemental package. I tend to like @Jim S.’s short and brief reason for denial should you ever be required to go to court, “they lied on the application.End of story.”!
We don’t have a physical copy of requirement that we distribute (I definitely like that idea), but we do discuss them upfront. However, we don’t explicitly say “information in your application will be verified and false information is grounds for denial.” That, to me, is understood.
As an update, we sent a generic email without a reason. We received a response asking why with a tone implying disbelief. To be honest, the applicant knows the provided information is false, and we have evidence to prove that it’s false. I’m not sure there’s any reason to follow up after giving it some thought. I don’t see any chance of the applicant admitting it or being civil.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.