Another day, another no show
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
Here's my process:
It all starts with online ads, within which are several questions I request be answered in their response to my ad. Here they are:
1.) Your first and last name, email address and phone number
2.) Total number of people that would occupy the apartment
3.) Proposed pets (size/breeds)
4.) Monthly pre-tax income for household
5.) Date you wish to move in
6.) Do you currently have enough funds to pay first month’s rent, last month’s rent, and a security deposit?
Next, here's a canned email response I use for everyone who answers my ad with the aforementioned questions answered. If they don't answer my questions, I know they have not read the ad and are just clicking and "tire kicking" or they lack the intellectual focus for me to have any business relationship with them. Anyhoo - here is the email response:
Thank you for your interest. We have a minimum income requirement to qualify for this unit (3 times monthly rent); based on your email, it appears you meet those qualifications.
Regarding pets, we allow cats and most dog breeds except for the following:
Unfortunately, these are prohibited for insurance reasons. We require a one-time nonrefundable pet fee of $200 (per pet) that is good for your entire length of residency. We do not charge any “pet rent” beyond this initial fee. We typically like to meet your pets at some point in the process, too.
Our tenants’ safety and the peaceful enjoyment of their home is important to us, so we do a credit/criminal background check on all applicants aged 18+. Big concerns are bankruptcies/repossessions/evictions and crimes against people/property. If you don't foresee any major stumbling blocks (or, if you do, and would like to discuss confidentially - we can certainly do that), I'd be happy to set up a showing for you. Let me know what you think.
As a matter of information, smoking is prohibited inside our rental units.
If you decide that the apartment would meet your needs and wish to proceed with the application process, a “deposit to hold” binder equal to a month’s rent would need to be collected at that time. This holds the unit for 5 to 7 days until the lease signing, and once the rental agreement is signed this becomes the first month's rent. At the lease signing, you will need to put down another $1650, which will be the security deposit ($825) and last month's rent ($825). So, the total move-in costs (not including pet fees, if applicable) would be $2475, all paid prior to lease signing.
Also, we would need copies of the two most recent pay stubs and photo ID for all applicants aged 18+ (I can scan at the showing) to begin the verification process, which only takes a few days.
Since choosing a place to live is a very personal decision, please feel free to do a “drive by” of the property, located at 123 Main St, so you can get a “feel” for the neighborhood. (I will ask that, out of respect for our current tenants’ security and privacy, to please wait until your showing appointment before walking the property.)
If everything above is agreeable to you, let me know your availability and I'd be happy to take you through the apartment.
Thank you, and I look forward to meeting you at the showing!
Note how I reiterate the qualifying criteria as well as itemizing what the move-in costs will be. I also suggest a drive-by so they are not unpleasantly surprised by the neighborhood when they arrive to the showing, and just keep on driving by anonymously as I wait outside. This email gives people yet another opportunity to self-select out of the application process based on my expectations and criteria before an actual showing in scheduled.
If they do request a showing, I send them this email:
Hi Sally,
How about Thursday at 7 pm? If that works for you, please reply to this email to confirm and I will add you to my showing appointment book.
Also, as a means of courtesy to both our busy schedules, please confirm via text or phone call at least 2 hours prior on the day of the showing to my cell phone (area code and number).
I’ve also attached our rental application. I will have hard copies at the showing, but if you print and fill them out prior to the showing, this would save us both some time should you want to expedite your application in the process.
I look forward to meeting you on Thursday!
If the unit is vacant, I book a pair of showings every 15 minutes. This makes my use of time very efficient as well as putting psychological pressure on the applicants to proceed immediately if they are at all interested.
If they have not confirmed an hour prior to their appointment, I send this text to their phone (which was required as part of their contact information I required in the response to my ad):
As I had requested in my email, you have not yet confirmed your apartment showing for this evening, scheduled for 7:00pm. If I don’t hear from you in the next 10 minutes, I will assume you aren’t attending and I will move on to my next appointment.
Using this system as dramatically reduced any wasted time I used to endure as part of the showing process as well as giving me data about their timeliness/responsiveness/respect for others' time.
At the showing, I collect their completed application (sent via PDF prior or filled out on premises), scan their photo ID and last 2 pay stubs.
Then, I do some digging around online (social media, court records, Google) and if it looks like they are representing themselves to me accurately, I contact them to set up a "contract to hold" meeting - usually the day after the showing since qualified applicants need to be "closed" ASAP. (During this whole time I continue to market/show the unit. I continue to funnel people into my process until a lease is signed.) Note that I do not put a lot of time into due diligence until the "contract to hold" meeting, when they put some skin in the game.
At the "contract to hold" meeting, I collect an amount equal to one month's rent. I ONLY accept cash or a check drawn on a local bank (so I can walk it in and get cash that same day). We sign an agreement that commits their non-refundable payment for a brief period (usually 5 days), during which time I call landlords, employers, and run background checks. If there is anything untoward, I have a 7 day right of rescission and I give the money back. I absorb the background check fee as it is a small price to pay for dodging the bullet.
Once background checks are complete, we meet again for a lease signing, at which point I collect the rest of the move-in fees. I only give them a short time (about 5 days) to meet for the lease signing before they lose their exclusive rights to the unit, so this prevents someone from dragging their feet after they've signed the contract to hold.
Once the lease is signed, I take down the ads and send out emails to people in mid-marketing flow letting them know that the apartment has been rented but I will reach out if something falls through.
Here's my process:
It all starts with online ads, within which are several questions I request be answered in their response to my ad. Here they are:
1.) Your first and last name, email address and phone number
2.) Total number of people that would occupy the apartment
3.) Proposed pets (size/breeds)
4.) Monthly pre-tax income for household
5.) Date you wish to move in
6.) Do you currently have enough funds to pay first month’s rent, last month’s rent, and a security deposit?
Next, here's a canned email response I use for everyone who answers my ad with the aforementioned questions answered. If they don't answer my questions, I know they have not read the ad and are just clicking and "tire kicking" or they lack the intellectual focus for me to have any business relationship with them. Anyhoo - here is the email response:
Thank you for your interest. We have a minimum income requirement to qualify for this unit (3 times monthly rent); based on your email, it appears you meet those qualifications.
Regarding pets, we allow cats and most dog breeds except for the following:
Unfortunately, these are prohibited for insurance reasons. We require a one-time nonrefundable pet fee of $200 (per pet) that is good for your entire length of residency. We do not charge any “pet rent” beyond this initial fee. We typically like to meet your pets at some point in the process, too.
Our tenants’ safety and the peaceful enjoyment of their home is important to us, so we do a credit/criminal background check on all applicants aged 18+. Big concerns are bankruptcies/repossessions/evictions and crimes against people/property. If you don't foresee any major stumbling blocks (or, if you do, and would like to discuss confidentially - we can certainly do that), I'd be happy to set up a showing for you. Let me know what you think.
As a matter of information, smoking is prohibited inside our rental units.
If you decide that the apartment would meet your needs and wish to proceed with the application process, a “deposit to hold” binder equal to a month’s rent would need to be collected at that time. This holds the unit for 5 to 7 days until the lease signing, and once the rental agreement is signed this becomes the first month's rent. At the lease signing, you will need to put down another $1650, which will be the security deposit ($825) and last month's rent ($825). So, the total move-in costs (not including pet fees, if applicable) would be $2475, all paid prior to lease signing.
Also, we would need copies of the two most recent pay stubs and photo ID for all applicants aged 18+ (I can scan at the showing) to begin the verification process, which only takes a few days.
Since choosing a place to live is a very personal decision, please feel free to do a “drive by” of the property, located at 123 Main St, so you can get a “feel” for the neighborhood. (I will ask that, out of respect for our current tenants’ security and privacy, to please wait until your showing appointment before walking the property.)
If everything above is agreeable to you, let me know your availability and I'd be happy to take you through the apartment.
Thank you, and I look forward to meeting you at the showing!
Note how I reiterate the qualifying criteria as well as itemizing what the move-in costs will be. I also suggest a drive-by so they are not unpleasantly surprised by the neighborhood when they arrive to the showing, and just keep on driving by anonymously as I wait outside. This email gives people yet another opportunity to self-select out of the application process based on my expectations and criteria before an actual showing in scheduled.
If they do request a showing, I send them this email:
Hi Sally,
How about Thursday at 7 pm? If that works for you, please reply to this email to confirm and I will add you to my showing appointment book.
Also, as a means of courtesy to both our busy schedules, please confirm via text or phone call at least 2 hours prior on the day of the showing to my cell phone (area code and number).
I’ve also attached our rental application. I will have hard copies at the showing, but if you print and fill them out prior to the showing, this would save us both some time should you want to expedite your application in the process.
I look forward to meeting you on Thursday!
If the unit is vacant, I book a pair of showings every 15 minutes. This makes my use of time very efficient as well as putting psychological pressure on the applicants to proceed immediately if they are at all interested.
If they have not confirmed an hour prior to their appointment, I send this text to their phone (which was required as part of their contact information I required in the response to my ad):
As I had requested in my email, you have not yet confirmed your apartment showing for this evening, scheduled for 7:00pm. If I don’t hear from you in the next 10 minutes, I will assume you aren’t attending and I will move on to my next appointment.
Using this system as dramatically reduced any wasted time I used to endure as part of the showing process as well as giving me data about their timeliness/responsiveness/respect for others' time.
At the showing, I collect their completed application (sent via PDF prior or filled out on premises), scan their photo ID and last 2 pay stubs.
Then, I do some digging around online (social media, court records, Google) and if it looks like they are representing themselves to me accurately, I contact them to set up a "contract to hold" meeting - usually the day after the showing since qualified applicants need to be "closed" ASAP. (During this whole time I continue to market/show the unit. I continue to funnel people into my process until a lease is signed.) Note that I do not put a lot of time into due diligence until the "contract to hold" meeting, when they put some skin in the game.
At the "contract to hold" meeting, I collect an amount equal to one month's rent. I ONLY accept cash or a check drawn on a local bank (so I can walk it in and get cash that same day). We sign an agreement that commits their non-refundable payment for a brief period (usually 5 days), during which time I call landlords, employers, and run background checks. If there is anything untoward, I have a 7 day right of rescission and I give the money back. I absorb the background check fee as it is a small price to pay for dodging the bullet.
Once background checks are complete, we meet again for a lease signing, at which point I collect the rest of the move-in fees. I only give them a short time (about 5 days) to meet for the lease signing before they lose their exclusive rights to the unit, so this prevents someone from dragging their feet after they've signed the contract to hold.
Once the lease is signed, I take down the ads and send out emails to people in mid-marketing flow letting them know that the apartment has been rented but I will reach out if something falls through.
@Anthony Wick One practice I adopted long ago after getting stood up by the umpteenth client is to text for a confirmation a short time before I depart to meet them.
No response and I don't go.
In my business, a client who has no respect for me or for my time is not a client I want to work with. They're the kind of people who will think nothing of running me ragged with property showings and at the last minute buy from another agent.
Likewise as a landlord, you should command enough respect that you'll be given the most basic courtesy. Anything less and you're starting off on the wrong foot.
@Wesley W. I would say my practice is very similar to yours, albeit not quite as complicated. I do a thorough prescreen, which does eliminate about 75% of those asking/kicking the tires. Today I had two appointments set up within a 30 minute window. The first appointment was a no show, the second appt has applied for the unit. But it really is amazing at how many people are no call/no shows anyway. And general open houses here don't really work for rentals.
@Anthony Wick I've only had one person ever whom confirmed but then did not show. If I don't get that text confirmation, I do not leave where I am or what I am doing. In your example, I would not have even left the house for the first appointment. Zero time wasted and negligible level of frustration.
@Wesley W. I very much like the idea of a text before appointment to confirm. However, your process would almost certainly garner almost zero applicants in my area. I need to bullet point like 7-8 qualify points for my rentals, and people will still ask "Do you allow pets"? I am going to guess that your region gets dozens of applicants per vacancy. While I have never had a vacancy last a full month, I believe my region may not be as busy as yours, particularly in November or December.
I require applicants to contact me 1 hr before the appointment to confirm. This allows me enough time to get to the property ahead of them without a inconvenience to me. If I do not hear from them in advance I do not bother going. If they contact me less that an hr ahead I reschedule the appointment to an hr later if I am still available otherwise I move it to when it is most convenient for me.
Since there is no knowing if any given applicant will end up as my tenant I always begin tenant training as though they will be. They need to understand that I am in control not them. I am not at their beck and call.
I'm definitely going to require a text 1 hour before appointment confirming that people will be showing up.
All the suggestions in this thread are fantastic. I think we've all experienced this issue you're running into. In my experience, even with a pre-confirmation, you will have people text you back and change their minds, or just ignore the appointment altogether. The good news is, you wouldn't want those tenants anyway! This isn't a huge issue when you live in, or close to your property, but I can't imagine the frustration driving 20+ minutes to be stood up.
Have you considered an open house scenario, where you can schedule everyone at the same time for one showing? This is what I'll be doing for my future showings. Saves my time, and creates a competition incentive for prospectives. It also is WAY less bothersome to your existing tenant, who isn't having strangers walk through their home over and over again.
Has anyone else used an open house strategy with success?
The harder you make it for a prospective tenant the less response you will get. Tenants will go to an easier process.
What I do is text the morning of the appt to confirm, then I try to have other things I could be doing just in case.... I think I have had one no show in 4 years.
as for ads, the longer they are the less they will be read ;)
@Christopher Boyle I'm doing an open house next weekend and will tell you how it goes. I've had several people tell me that it conflicts with their work schedule. If they pass pre-screening I schedule a private showing with them.
I do open house appointments but make it clear that if there are no confirmations for a slot then it will be cancelled. The number on the listing is a google voice number that has the times of the showings. I post the listing on Thursdays and have a showing Friday evening, Saturday morning, and Sunday morning. I make each showing 1 hr each or less. In the voicemail I instruct them to text the number with their email address and then send them a form letter with qualifying questions and a blank copy of the application. I explain that I process applications in order they are received so the sooner the application is completed in full, the better. They also only get 24hrs to respond to and pay for the credit/background check or I move onto the next applicant. All of this combined with a group showing creates enough demand and usually I have at least 10 applications before the Sunday showing. This works for my area right now but may change as time goes on.
I used to just have Open Houses, but now I use Rently.com. It's just like what several people mentioned about getting a copy of a licence and then giving out the lockbox code, but it's automated and every person gets an individual code that's good for only one hour. They can't come back later and try to get in, unless they request a new code.
And the best part is that they get an automated reply from Zillow or where ever they saw the ad telling them how to access the system. I don't have to answer a million Emails.
It's the best thing I've ever done. It costs $30 per box per month, and there's a minimum of two boxes, but the cost is nothing compared to the cost of my time and the cost of gas to drive to a property for another no show.