How to decline a qualified rental applicant.

Question

Nathan Gesner · Answer

@Janet Ikpa if you reject the tenant based on any information discovered in the credit check, then you should notify the tenant with an Adverse Action letter. You can find a plethora of examples with a Google search but they are typically provided by whatever system is providing the credit check.

I recommend notifying them by email with a very short, professional blurb. You can build a list of common rejection reasons, cut/paste the one(s) that apply, and send it off.

Save this as a canned response and send it for every denial. 90% of them will accept it and move on. A few may ask for more details and you can respond with a short, professional response.

I highly recommend you avoid denials by phone because that's when they'll try to argue, question your decision, ask to bring additional documentation, hurl insults, threaten to sue you, etc. Don't get into the drama!

Mary M. · Answer

Check your local laws first. For example, in Oregon the first qualified tenant gets the place - the landlord does not get to pick.

So first find out if you have a law that speaks to this. If not, i would just still do first come, first served if all else is equal.

Also,you might find your local rental owners association and take whatever landlord training they have.  I took a landlord bootcamp class and it was the best $100 i ever spent!

Haha forgot to answer your question- just text or call them and say “ thank you for your application. You were second in line and unfortunately the first applicant was approved”

Thomas S. · Answer

Unless your state codes specifically require that you must give a reason to reject a applicant you never give a reason. The only ones I have heard of require that you give a reason is if credit score was the reason to reject.

I do not know where you are reading that landlords need to inform applicants as to why they are rejected but that is flat out wrong.

You choose the most qualified, the best fit for the property and the best fit for you personally. This method is almost certainly guaranteed to provide you with a happy tenant. The fact is no two applicants will ever be equally qualified. It is simply not possible based on a landlords personal requirements. Choose the most qualified.

All other applicants are simply informed that you are sorry but the unit is no longer available.

Johann Jells · Answer

Tell them a previous applicant qualified, and NEVER tell someone at the showing they are the 1st to see it!

Cameron Riley · Answer

@Dennis M.

Lol.. this won’t work. Especially after you said, “ yeah we don’t care to much about credit “

Anthony Wick · Answer

First, I do a preliminary screening, at no cost. Most of the time this will preclude people from paying the $40 application fee when they know they won't meet the minimum criteria. For your particular situation, I would notify the other two applicants that the property has been rented. Plain and simple. Nobody was "rejected". One applicant was merely accepted. Of course, in my scenario, I only submit one applicant at a time for the $40 screening through MySmartMove on BP.  I wouldn't want numerous applicants paying $40 when only one of them can rent from me.

Kenneth Garrett · Answer

@Janet Ikpa

I use Experian.

Mary M. · Answer

A couple thoughts: who your market is will dictate to a large degree how you respond.

Since i have to accept the first qualified applicant, i always run my approval on a first come first served basis. I inform anyone interested in the unit if I have someone else applying in front of them and always let them know that at this point it is wait listing and that I will inform them otherwise.

I have found the above helps keep expectations in check.

I also do not do open houses, and my applications are all done online, so there is never any confusion

Amazingly and probably due to the market I serve, i have had little issue with first come first served  (shrug)

How to decline a qualified rental applicant.

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