First Time Landlord - Multiple requests to rent

[Jimmy Lee]

I am a first time landlord and managing my own property.  I have my property listed on websites and have received applications (with background/credit checks), along with many requests to view the property. The property is going to rent ASAP.  The area is a difficult place to rent in.  We experienced this issue when we moved there three years ago.  

How do you all determine who to rent to?  Do you use credit history? Payment history?

Example:

Tenant 1 -

Applied first 

Has fair credit

No background issues

Some history of late payment.

Tenant 2 -

Applied second

Has Great credit

No background issues

No history of late payment.

Am I obligated to showing the house first to one tenant over the other?

Thank you all!

[Nathan Gesner]

There are different schools of thought. I'm a property manager with over 300 units and I use a "first-come, first-served" process. I know managers with thousands of rentals that follow the same policy. However, there are others that believe in choosing the "best" applicant. I don't think there's a right answer but you need to know what you are doing.

When you take multiple applications at the same time and then pick the "best" from the pile, you run a real risk of a discrimination complaint. Let's say a single mother applies for a two-bedroom apartment. She has a good Landlord reference, her income is 3.5x the rent, and her credit score is 710. Then a single guy applies and with a good Landlord reference, his income is 3.7x the rent and his credit score is 770. You decide he's better and rent to him. The single mom demands to know why she was rejected when she met all your criteria. Even though you chose the man based on objective criteria, it still gives the appearance of discrimination. She met your criteria but you rejected her for someone else.

I have objective criteria published for all to see. I start screening applicants once everything is received, to include supporting documentation, applications from everyone in their party, etc. I screen every applicant according to my objective criteria. When they pass, I offer them the rental and they can put the money down or run the risk of someone else applying.

I'm also a big believer in fairness and (personal opinion) it doesn't seem fair to me when someone meets the basic criteria but is rejected for someone "better". Either they qualify or they don't.