Do you provide applications to everyone that looks at rental?

[Mary Munoz]

I'm a new landlord and have some renters coming to look at the property. I scheduled a showing for the weekend but just scheduled another for tonight. If the group tonight is interested, do I give them an application and honor the showing I already scheduled for the weekend? I guess I'm just a little confused on (1) when to give an application, and (2) how to decide who gets to rent it when there are multiple interested parties. Any advice is appreciated!

[Mike H.]

Yea. I would agree with one of those latter posts. Give everyone an application. If they submit the application and they look good, I tell them they are qualified and the house is theirs IF they want it. But I also tell them the house isn't locked up until I receive a hold deposit.

I keep doing showings until I get a hold deposit from someone I've qualified. What you don't want to do is tell someone the house is theirs and then tell everybody else its rented. And then a week later, find out the applicant you picked isn't going to rent from you after all.

Then you have to start all over and probably could have had someone else in the previous group locked in by now. Typically if you call them back, it'll be too late.

So I never tell anyone its rented or stop showings until I receive that hold deposit.

The hold deposit is not some additional fee - its a portion of their security deposit paid in advance. If they back out later, though, I keep it.

You'll find out real quick who is serious and who isn't. Its also a bit of a red flag if they tell you they need a week or so to come up with the $500.  When that happens, I am typically dying for someone else to qualify and put up the money to beat them out.

A few years back, I got a good deal on a near new construction house. First applicant saw it on friday and was fantastic. Nurse with great income and job history. Husband had good job too. But then they said they couldn't get the deposit to me til monday. Hmmmmm.  Somebody came and looked at it on sunday. They were great too. Filled out the app, I ran the stuff, offered to them, and they got me the deposit the same day.

Told the nurse/family and they were beside themself. Told me how much they wanted it and that I should have held it for them and then she said she was going to hurt herself she was so upset and it would be my fault. Not exactly what I want to hear knowing nurses are the ones that are helping people. I tried telling her there would be other houses but this lady was just crazed. 

So it can be a bit tricky to do it this way, but ultimately, requiring that hold deposit will let you eliminate the risk of a tire kicker no showing on you when it comes to pay and you've already told everyone the house is rented.