South Bend, IN · Member since 2015 · 180 posts · 93 votes
Hey BP,
I showed one of my rentals last night to a person who got through my pre-screening which includes asking if the person has had an eviction to which he replied, "Never". I did a quick search on his name and address and found he has a couple of evictions and other small claims, looks to me like a professional tenant or one in the making.
In practice, what is the best way to handle this? Should I allow him to apply and send him an application and then deny him or deny giving him an application on grounds he has an eviction? I am looking to avoid falling into some obscure legal trap he could use here (if any).
@Amy Beth is right. Even though you know he is lying, you still need to show that you went through the proper channels before coming to your decision. If you don't, he could easily say you had discriminated against somehow, and you DON'T want that. Use whatever background check company that is out there, get the report, decline him and when he asks why am I declined, you send him the copy of the report. Can't ever take you to court for that.
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
8y
You’ve already spent more time with the guy than I would’ve. I will not show a unit to someone until they have submitted an application for a “quick prescreen”. They text me their email address, I send the app, they print it and complete it and then either scan and email it or text good pics of it to me. If they have evictions, drug charges or violent charges then it’s an automatic pass for me and they don’t even get a showing.
Everyone gets an app...only those pre-screened get a foot in the door.
South Bend, IN · Member since 2015 · 180 posts · 93 votes
8y
@Brandon Hicks I like your strategy, and I appreciate you sharing it. I have been approaching it from the standpoint of: the more applications I give out, the more people I need to decline, and the more people who get upset over being declined. Have you ever had problems with that?
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
8y
I would recommend giving the application and then doing a proper check to make sure your information is accurate. There are times when a JR gets confused in the system with a SR and you end up denying for "sins of the father". I would just follow the process.
As far as a prescreen before allowing them in the place, I do not recommend it. Even if they don't qualify or are denied having them say "I was in this great place over by the bridge....." to the right person may just be the perfect tenant.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y
Aaron Linden I think the best course is to treat all of the (potential) tenants the same. If everyone has the opportunity to apply, so should this tenant. It’s one of the reasons that having a nominal $25 application fee (pick your price) to cover a background check is common. Yes, it’s to cover the cost of a background check but it’s also so some applicants will self-select out (not waste your time with an application) because they don’t want to waste the $25. Just keep the “process” the same and you should be fine.
I’ve found that I get very few of the applications I email out returned to me. I make mention in my ads that if they have unpaid landlord judgements that they’re wasting their time even contacting me. I still get bad apps. I’d like to get more back and I think developing an app that can completed on a mobile phone would help with that. But at the same time, it’s nice to only get a few apps per opening and for those to be of generally higher quality.
Here’s the thing....you get 10 apps for an apartment....you’re approving ONE, not rejecting 9. You actually don’t need to decline anyone. You just state that you have approved another applicant that met your criteria. Period. Using my strategy for showings will result in far fewer showings to unqualified people.
I showed one of my rentals last night to a person who got through my pre-screening which includes asking if the person has had an eviction to which he replied, "Never". I did a quick search on his name and address and found he has a couple of evictions and other small claims, looks to me like a professional tenant or one in the making.
In practice, what is the best way to handle this? Should I allow him to apply and send him an application and then deny him or deny giving him an application on grounds he has an eviction? I am looking to avoid falling into some obscure legal trap he could use here (if any).
Thank you for your input!
Aaron
You already know he will not fit your criteria, to keep it uniform you can provide him with an application, process it the same way you do with all others and provide an official decline letter - I charge for the application, most people don't even make it past this control point. My opinion if you cannot pay the app fee, you cannot pay me rent - simple as that and most people don't bother wasting my time if they know they not going to pass the app test.
Investor · Post Falls, ID · Member since 2016 · 606 posts · 699 votes
8y
This is the exact reason I charge an application fee and am very open about my requirements. An applicant who knows they will not qualify will not pay the app fee -- they will self screen out. The only thing you have to do is make sure you clearly communicate to the applicants is that you always run credit/criminal/eviction checks and send the required letter when you disqualify based on credit score.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
8y
Assuming you have a question on your application - "have you ever had an eviction filed against you", I would definitely have them fill out the app. And then you can show that he lied on his application.
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
8y
Treat everyone the same......make your criteria clear, so you pre-screen...... give him an application....run the reports and deny if he doesn't meet any of your qualifications.
Legal issues come up when you don't follow the same procedure on every person that wants to apply. Have a policy to give EVERYONE an application that ask for one....even when you know its a dead end......
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
8y
If he asks for an ap give it but emphasize you check all applicants on xyz eviction site. You dont have to reject him, just emphasize the criteria he does meet directly and firmly you probably wont get that ap back...
Rental Property Investor · Denver, CO · Member since 2017 · 70 posts · 28 votes
8y
@Brandon Hicks What percentage of fully completed apps do you get returned to you that you send out? We are having a hard time with people following through.
Probably less than ten percent. I’ve honestly never tracked it. I do think it would be higher if I had a jotform or similar application that could be filled in from a mobile phone. There are so many people these days that don’t have easy access to a printer.
Some of the low response is purely people that think or understand that they have a very slim chance of being approved. So I like to look at it from the view that the apps I’m getting are probably higher quality than the ones that I’m not getting. If that makes sense
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
8y
@Aaron Linden Clearly list out your pre-screening requirements. If you will not consider someone with an eviction tell them that and if they apply and in fact have an eviction just deny them based on that. The tenant in this case very rarely applies if they know they are just going to be denied anyway.
This is why also it is important to have some kind of application fee. People are not going to pay a fee just to get denied for something they already knew would be grounds for denial.
Where you will get tripped up is not allowing them to apply. Just provide them with all of the info they need to know and let them decide.
Overall and from experience, it is better to ask the pre-screening questions before you are at the appointment. This is a time saver for both you and the person looking for an apartment.
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
8y
@Aaron Linden Oh yes, you are definitely threading on some legal lines.
Superb that you found that information by doing your own Due Diligence; however, you want the tenant to fill out an application first before you deny so that way you don't get sued unnecessarily.
These folks not only try to live for free but also try to make money on the front end.
South Bend, IN · Member since 2015 · 180 posts · 93 votes
8y
I went ahead and gave him an application and validated the eviction against him. What is more is that he lied about his income on the application as well. I guess this is why we put these processes in place! Thank you all for your feedback!
@Michael Noto My process is to pre-screen with phone/text/email questions and eviction is one of them. He said he did not have an eviction when asked the question. Furthermore, he said he has no evictions when he filled out the app and turned it in yesterday. I may start taking an application fee. Typically I screen the app for free and do not charge them until I am ready for the background/credit check.
@Mike H. I have the eviction question on the app, it is no problem to deny him based on this.
@Ola Dantis Thank you for the compliment and I agree with your assessment. It is simple enough to show he has an eviction and also that he lied on the application.
South Bend, IN · Member since 2015 · 180 posts · 93 votes
8y
To anyone who may find this thread one day, I will follow up with the rest of the story.
It turns out this guy was a professional tenant. When I declined him due to the eviction he got pretty belligerent and insisted it was not true and that he would sue me for discriminating against him. I pulled in my lawyer and we formulated a series of statements to prevent this from happening and everything (so far) has turned out well.
Moral of the story: This guy was a really nice guy when I met him. Set up written, non-discriminatory screening criterion and stick to it! Then DO YOUR SCREENING. Trust but verify. This could have turned into a hot mess had I not known the law and followed it to a T. Furthermore, this guy has been evicted several times. Make sure you are checking court records in addition to your background check as sometimes these do not all show up in the report.
To be clear, the advice given in this thread is great and likely helped me out as I could refer back to lying on the application as reason to deny as well and maintaining the proper documentation for this type of person is likely to pay off in the end.