Listed my first rental property - overwhelmed with interest. help

Rich Littlefield

Lender · Huntington Beach · Member since 2008 · 120 posts · 57 votes

7y

Rule of thumb selling houses, your best buyer shows up almost immediatly, most of the time.

7 Reply

Adam Craig

OP

Investor · Cleveland, OH · Member since 2011 · 603 posts · 130 votes

7y

Originally posted by @Rich Littlefield:

Rule of thumb selling houses, your best buyer shows up almost immediatly, most of the time.

This is a rental not for sale. I guess I'm just looking for the best system to handle the initial flood of interested applicants so I can best organize them

0 Reply

Will Gates

Rental Property Investor · Maryville, TN · Member since 2018 · 80 posts · 53 votes

7y

Sounds like it's somewhat of a great problem to have if you're getting very qualified candidates.... I'm interested to see how things go.

@Adam Craig, For those that want to see it early, could you charge an early access fee either in lieu of or in addition to an application/background check fee?

1 Reply

Kevin S.

Accountant · Tulsa, OK · Member since 2018 · 312 posts · 349 votes

7y

@Adam Craig glad to hear you're getting a lot of interest in your property. My first question on reading this is, are you underpriced for your area? That could be one reason you are receiving such a large response, and could indicate you can raise your rent and still have plenty of qualified applicants. As for your questions:

1) If you have that many people interested and are self-managing, I would stick to your guns with the open house. Otherwise you are going to have to spend a lot of time doing multiple showings. It also, in my opinion, sets the tone for the whole relationship if you are making special exceptions for people to get in early.

2) This is one of my favorite ideas from BP, and it sounds like it could be useful in your situation, basically using Google Forms as a funnel to help weed out the unqualified.

https://www.biggerpockets.com/forums/52/topics/476093-how-we-screened-300-tenants-with-zero-phone-calls-for-free

Good luck!

3 Reply

Lynn McGeein

Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes

7y

For the first showing, it's the advertised time period as, otherwise, you'd need to open up the earlier showing time to all or it would be unfair to those who are following the rules. If I don't get a qualified applicant during the first showing period, then if there's a valid reason and it's easy to accommodate the request, like I'll be there, anyway, then I've scheduled other times outside the next advertised showing. I will then try to schedule several for the same time period just in case as I've had no shows even when offering a special accommodation.

0 Reply

Marcia Maynard

Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes

7y

Open House Drawbacks (why we don't do them):

Many highly qualified tenants may not be able to make it to your open house. Sometimes they are working at that time. Sometimes they have other plans. Sometimes the least qualified are able to make their way to be first in line if they have more free time on their hands. If you do an open house, offer an alternative way for those who can't make it, so they can view the home and get their application in too.
By bringing everyone together at the same time, it creates an atmosphere of competition. This can work for you or against you. Sometimes people can get pushy in such situations. Some rush to fill out an application on the spot to get their application in before any other. I prefer for prospective tenants to take the time to thoughtfully fill out the application. Then I collect them as a batch and rank them according to our rental criteria.
There may be less ability to observe people and see what they are doing. Sometimes things go missing. Some will be lookie-loos instead of serious contenders. I've felt overwhelmed with so many questions and demands for my attention coming from different directions when I've had an open house with many people there at the same time.
Definitely prescreen candidates prior to showing them the place and anytime you show a place, look out for your own safety.

2 Reply

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

7y

I will only show ahead of my scheduled open house if they apply online and their application looks good. If their serious then this shouldn't be an issue for them.

I have started using Zillow applications and really like them.

I still get a paper application so I have their information in case I have to report to credit bureau for unpaid rent.

0 Reply

Adam Craig

OP

Investor · Cleveland, OH · Member since 2011 · 603 posts · 130 votes

7y

Thanks for the replies all - very helpful info.

0 Reply

Thomas S.

Member since 2016 · 13k+ posts · 12k+ votes

7y

Over interest is a result of underpricing. You should reassess your market rates and push it to the max to reduce applicants.

2 Reply

Adam Craig

OP

Investor · Cleveland, OH · Member since 2011 · 603 posts · 130 votes

7y

Originally posted by @Thomas S.:

Over interest is a result of underpricing. You should reassess your market rates and push it to the max to reduce applicants.

I guess the problem was I never knew how much interest my properties were getting because my property manager with filter everyone hand send me one applicant.

now that I know I will definitely make adjustments accordingly I guess you can always go down but at this point I'm not going to raise it.

0 Reply

Barry Sanders

Brooklyn, NY · Member since 2018 · 79 posts · 30 votes

7y

I have to agree with @Kevin S. if youre getting an overwhelming response you are underpriced.

Consider charging an application fee to weed out the people who are not serious

Have people put down a deposit the day of the showing if they are interested

Ive done the google forms before but i dont think it works well in controlling volume neither did it bring us the tenants we eventually accepted

And definitely agree with @Marcia Maynard
Review your approval criteria, if you can get someone that meets your criteria then I wouldnt bother waiting for the open house. Just be sure they meet the criteria before you schedule the viewing. If you have that great a response you may be able to set higher standards and easily find quality tenants

the only benefit i see to an open house is if you have additional units coming to market and would like to create a waiting list of applicants

0 Reply

Account Closed

Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes

7y

Originally posted by @Adam Craig:

Starting to transition my 25 rentals off my property manager and doing it in house. The plan is to manage a few myself with TenantCloud- then when I have my systems in place I am going to hire someone to do the book keeping/showings.

I just listed my first property which was a fresh rehab. The plan was to have an open house style showing this coming Sunday due to heavy interest. But I am having what appears to be extremely qualified people (engineers, Nurses, ect) begging me to let them see it early so they dont miss out.

So I have 2 questions -

1. How do I handle the people who dont want to wait for the open house. Is it acceptable to forgo the open house and let them see it early?

2. What is the best way to handle the dozens of emails/calls/texts I am getting. I am thinking I need a pre-qualification document before anything else to weed out non-qualified applicants even though I have the qualifications listed in the description. Any other ideas? Voicemail service or something of that sort?

Take an online application for someone like that. They pay the fee you run checks then show them on a separate date for them all. Whoever says yes you get to pick from.

I’m just throwing out a random idea.

I just did the same thing.

Had an open house date and a bunch of people asked to see it, I should of done the application beforehand but had a mini open house for them. Rented it and canceled the open house. I don’t care who I rent it to as long as I do it legally, quickly, and get a long term tenant into the property.

0 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

7y

Originally posted by @John Underwood:

I will only show ahead of my scheduled open house if they apply online and their application looks good. If their serious then this shouldn't be an issue for them.

I have started using Zillow applications and really like them.

I still get a paper application so I have their information in case I have to report to credit bureau for unpaid rent.

how do you report to a credit bureau for unpaid rent. ??? when i looked at this IE when i had my HML company.. it was pretty arduous

is there some other method for landlords ?? just curious I know your highly experienced in the space so thats why i am asking

Podcast Guest on Show #222

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0 Reply

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

7y

Originally posted by @Jay Hinrichs:

Originally posted by @John Underwood:

I will only show ahead of my scheduled open house if they apply online and their application looks good. If their serious then this shouldn't be an issue for them.

I have started using Zillow applications and really like them.

I still get a paper application so I have their information in case I have to report to credit bureau for unpaid rent.

how do you report to a credit bureau for unpaid rent. ??? when i looked at this IE when i had my HML company.. it was pretty arduous

is there some other method for landlords ?? just curious I know your highly experienced in the space so thats why i am asking

Jay, I went through Residentresearch.com I now have an account where I can submit this information.

0 Reply

Jeremy England

Contractor · Pensacola, FL · Member since 2017 · 322 posts · 157 votes

7y

I publish my prequalification standards in the listing. Minimum credit score, minimum income, no evictions, no felonies in past 5 years, no sex offenses,

0 Reply

Gina SternPro Member

Investor · Boca Raton, FL · Member since 2019 · 1k+ posts · 160 votes

7y

Great job on listing your first rental.

[email protected]561-430-2616

0 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

7y

Originally posted by @John Underwood:

Originally posted by @Jay Hinrichs:

Originally posted by @John Underwood:

I will only show ahead of my scheduled open house if they apply online and their application looks good. If their serious then this shouldn't be an issue for them.

I have started using Zillow applications and really like them.

I still get a paper application so I have their information in case I have to report to credit bureau for unpaid rent.

how do you report to a credit bureau for unpaid rent. ??? when i looked at this IE when i had my HML company.. it was pretty arduous

is there some other method for landlords ?? just curious I know your highly experienced in the space so thats why i am asking

Jay, I went through Residentresearch.com I now have an account where I can submit this information.

so does one have to check with resident then to see if there was a default.. or does this show up on the Actual 3 Bureau's that determine fico score.. ??? and is there something on there for late rent. ??? like mortgage lates ?? that would be interesting information for landlords.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

0 Reply

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

7y

Originally posted by @Jay Hinrichs:

Originally posted by @John Underwood:

Originally posted by @Jay Hinrichs:

Originally posted by @John Underwood:

I will only show ahead of my scheduled open house if they apply online and their application looks good. If their serious then this shouldn't be an issue for them.

I have started using Zillow applications and really like them.

I still get a paper application so I have their information in case I have to report to credit bureau for unpaid rent.

how do you report to a credit bureau for unpaid rent. ??? when i looked at this IE when i had my HML company.. it was pretty arduous

is there some other method for landlords ?? just curious I know your highly experienced in the space so thats why i am asking

Jay, I went through Residentresearch.com I now have an account where I can submit this information.

so does one have to check with resident then to see if there was a default.. or does this show up on the Actual 3 Bureau's that determine fico score.. ??? and is there something on there for late rent. ??? like mortgage lates ?? that would be interesting information for landlords.

So the company sends them a certified letter. The have the opportunity to prove they are paid up. If it come back unsigned for the process goes much faster and shows up on their credit report as them owing you money. It cost everytime you create an account against someone so I wouldn't do it just for late payments.

One day they may want to pay you to get this off their credit report. It can stay on their report for 10 years from the date the money was owed not from when you create the file.