Tire kickers: How to discourage and screen them out quickly
Investor · Burlingame, CA · Member since 2016 · 63 posts · 3 votes
Tire kickers: How to discourage and screen them out quickly
Most Popular Reply
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
6yAsk questions in your ad. I ask 5 specific questions that must be answered. The unserious won't bother .
I also provide no ph# and no address, just cross streets or neighborhood. Too much work and guessing for tirekickers.
11 Replies
- 6yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
@Constantia Petrou we put our base requirements right in the advert and unemployed 19 year old single moms still respond.
- Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes6y
Unfortunately we also get tire kickers pretty regularly. Application fees help weed some of this out, but not all of it. I know some areas don't allow app fees, so just make sure you are still following your local regulations.
I have also noticed that higher app fees get more serious candidates, but it doesn't necessarily weed out all of the weirdos. The last leasing that I did we had 5 applications and only 1 qualified based on our minimum income, background and employment requirements.
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes6y
Ask questions in your ad. I ask 5 specific questions that must be answered. The unserious won't bother .
I also provide no ph# and no address, just cross streets or neighborhood. Too much work and guessing for tirekickers.
- Investor · Indianapolis, IN · Member since 2015 · 126 posts · 141 votes6y
Due to COVID, I recently started requiring people to submit an application prior to conducting a physical tour. These are B+ type homes. I thought I'd hate it having to do more screening, but it has been great. Tire kickers and people who know they won't qualify weed themselves out (or I weed them out if they try to slip by my screening). I don't charge any app fee before a physical tour.. only if they want to move forward after the physical tour is there a fee (that's when I do the background check and credit check, so that's my actual point of $$ outlay anyway). I'm not trying to scam app fees out of people, just trying to get rid of tire kickers who want to waste my time.
- Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes6y
I believe this is part of self managing. You see I have a choice whether to self manage or to hire a managing company. If I hire a property manager then I don't have to deal with the inconveniences of renting a property.
If I was you I would consider hiring a management company so that you don't have to deal with "tire kickers". If you choose to self manage, consider it part of the job.
Just my thoughts on the matter.
- Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes6y
Simply don't process the app until you have a "complete" application. Don't do any work, don't run a background check, don't call past landlords. A complete app should include proof of income.
Just say ahead of time that all apps are completely nonrefundable and any incomplete apps will be cancelled without refund. Lay out your criteria once ahead of time clearly, and then stick to it.
Then once you get a complete app, with IDs, proof of income, references, etc, you can take a look and quickly tell if someone is not qualified on that criteria alone (income doesn't meet 3x rent, for example) before even proceeding to the screening.
If this is too much work, I agree that a property management company would probably be happy to take this on for you. Many offer leasing-only services if you still want to self-manage the tenancy.
- Investor · Burlingame, CA · Member since 2016 · 63 posts · 3 votes6y
Some great ideas on improving my ad which I will adopt, thank you! I like to manage my own properties because it is how I make sure I get quality tenants and I also enjoy the good relationships I build with my tenants. I do not process anyone without a complete application. The tire kickers I am referring to are the ones who waste my time to show them the property when not serious. The step of showing the property is where the tire kicker problem is. I want to minimize showings only to people who are serious and weed out those who just want to browse and collect information from me. My application process step is very tight and have no issues at that step. Thank you all again
- Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes6y
Sounds like you are advertising on Zillow and Facebook. They are the worst because 96% of them don't even read the ad..... Start advertising on CL.
In your ad, put........
No dangerous breed animals or pets
No smokers of any kind,
No evictions, ever
No felonies, ever
There is a $50.00 Non-refundable background check that you (The prospective tenant) will pay
Your gross income must be at least 3x the monthly rent.
Then when they call......don
t pickup the phone.........let them leave a voice mail...........If they sound like they have sense......then TEXT them back and ask them to verify the above.
Once they verify then arrange a showing
- Rental Property Investor · Lake Hallie, WI · Member since 2015 · 292 posts · 144 votes6y
I always do a phone interview first because it's harder to make up stuff on the fly. I also take notes during this call. If they don't sound like a good fit I'll tell them I have some candidates with better income, ECT that have a pending app or something to that effect. Then I tell them if said person don't work out I will call them back. When a applicant does put in a app I will compare what's on that to my notes. Any discrepancies that pop out at this point will require extra scrutiny. Phony landlord references are common but I've gotten good at sniffing those out. Another tip I saw on a post was to keep giving the lead/ applicant more "chores" eventually they give up and then it's on them for not getting you that info.
- Rental Property Investor · Lake Hallie, WI · Member since 2015 · 292 posts · 144 votes6y
WOW!
- Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes6y
Here is my system that I have shared on the forums previously:
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 in6.) 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.
I market on both Craiglist and Zillow and get great leads from both in my market. Problem with Zillow is they have this annoying "1-click reply" where people can just click on your ad without reading it and you get an automated message "Joe is interested in your apartment at 123 Main St." To these responses I just cut/paste the ad narrative into an email reply. This is a waste of my time, but until Zillow wishes to change their process, I am stuck with that if I want to market through them.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:
- -any breeds/mixes known under common parlance as “Pit Bull”
- -Rottweiler
- -Doberman Pinscher
- -German Shepherd
- -Alaskan Malamute a.k.a “Husky”
- -Chow Chow
- -Great Dane
- -St. Bernard
- -Akita
- -Wolf hybrids
Unfortunately, these are prohibited for insurance reasons. We require a one-time nonrefundable pet fee of $250 (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 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 within 36 hours to accept this appointment and I will then add you to my showing schedule.
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 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.
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