Do you show the property before application?

General Landlording & Rental Properties
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Do you show the property before application?

Hilary Graves
Member since 2020 · 22 posts · 12 votes

After advertising our vacant unit, I had several people fill out an application right away, and now I'm getting a round of people who just want a showing to see if they are interested BEFORE they pay the money to fill out the application (on Zillow, which is $29 I think, because it includes credit/background check).   Is it customary to do showings before people even apply?  Just checking! TIA

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Filipe Pereira
Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
5y

Yes, definitely regular and normal to show the unit before people apply @Hilary Graves . Find the happy medium and pre screen your potential tenants before investing the time to show the unit. If I were a renter, I sure wouldn't be throwing money at everyone in the form of an application fee just to have the privilege to view the unit. 

Markets vary of course, but this is what we're doing in CT / western MA.   

Check out this thread on how to screen tenants with no phone calls. https://www.biggerpockets.com/...

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    5y

    @Hilary Graves That's like test driving a new car without a valid drivers license. Not wasting my time for a potential tenant. 

    9Reply
  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Yes, definitely regular and normal to show the unit before people apply @Hilary Graves . Find the happy medium and pre screen your potential tenants before investing the time to show the unit. If I were a renter, I sure wouldn't be throwing money at everyone in the form of an application fee just to have the privilege to view the unit. 

    Markets vary of course, but this is what we're doing in CT / western MA.   

    Check out this thread on how to screen tenants with no phone calls. https://www.biggerpockets.com/...

    25Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    My wife’s grandma was going to rent her house out when she moved into assisted living and the family hired a pm.  They wanted to charge an application fee before looking as well and the house just sat there while similar houses nearby were renting for a similar price.  I think it is a bad idea and I wouldn’t pay 60 for my wife and I to get the opportunity to see if we even like it.  You can reuse your Zillow application for a month so there is a chance you are just getting other peoples rejects.  I suggest developing prescreening questions and arrange showings a few days a week in clusters.  This is a better use of your time and you will cast a larger net.  Think if the role were reversed and you were buying another property would you be likely to pay for the opportunity to look or would you just look for a different property.  

    5Reply
  • Julie Hartman
    Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
    5y

    @Hilary Graves We do a phone screen before we show but we ALWAYS show before accepting an application. We require meeting anyone who will occupy a property and we rarely make exceptions to that policy. The other reason we show before taking applications is because we want the tenant to be sure they actually like the place. We also require everyone who will occupy be present for the one and only showing we'll do with them. We don't waste time with multiple showings for the same applicant. Some PM's do but we don't. On the flip side of this, why would an applicant waste their own time filling out an app before they have seen a place or know if they qualify for it. Makes no sense. 

    10Reply
  • Justin Hoggatt
    Investor · Morrison, CO · Member since 2015 · 221 posts · 177 votes
    5y

    We make it a policy to have prospects view the property before applying.  We do realize that sometimes this isn't possible for those that live out of state and simply can't or don't need to see it if our video's or pictures do it justice.  On our application, we have a disclaimer included that viewing the property is part of the application process.  Additionally, the application requires payment at time of application submission so we don't have to ask for payments later.  

    Sometimes tenants will want to apply as quickly as possible to get "in line" for the property.  In my opinion, if you have that many people wanting to apply so quickly without even looking at it, then your rent rate is too low and you should raise it before allowing anyone to move in. Also, I do have an "Unseen Property Addendum" that I have added to my lease should someone not actually see it and still be 100% okay with signing a lease.  Again, this does happen and the addendum basically says that they agree the house is rented to them and they can't argue about getting out of it because it "wasn't what they thought".  That's of course after a valid attempt to make sure they have seen it, usually at least by way of FaceTime or similar.

    11Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y

    We have a free application process before a potential tenant gets to the "paid" point on credit/background check. We pre-screen by phone before bothering with showings but do not charge people to look. That would be a serious deal-killer around here.

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    12Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    People do it both ways. If you are charging money before even seeing a property, you are definitely scaring away good prospects. Who wants to pay $29 for seeing a property that they may or may not want to rent? It probably depends on how desperate people are and what the supply of properties is in your area.

    The other concern about charging money is it creates expectation. If someone has paid money, they want to know why you denied them. And if you approve them for showing, how can you deny them after showing? 

    Having a pre-screening process is important for you and the applicant. You should value their time and money as they should value yours. We have developed a list of four pre-screening questions that allows us to determine if people have the high level qualifications required. This saves time not renting to unqualified people, but also doesn't commit us to renting to someone before we meet them. 

    Even my simple four screening questions scares off some people. I am not sure why. My best guess is they don't meet the requirements and my questions send them the message I wouldn't rent to them. It is really self screening at that point.

    My advice is find a balance, because your current process is outside of the norm and could be eliminating good prospects.

    11Reply
  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    No way. I do what @JD Martin does. Free application to keep the other landlords, curious day-trippers and neighborhood Karens away. Allows me to do a preliminary weed through. Then, in person showing where I lay out what is expected from both parties. If all is good to go forward I tell them if they are interested they can finalize the application process with a background check and credit report that they pay for through Cozy.

    I dropped a lot of the time-sucks that way. 

    8Reply
  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Joe Splitrock:

    The other concern about charging money is it creates expectation. If someone has paid money, they want to know why you denied them. And if you approve them for showing, how can you deny them after showing? 

    That is profound... Never put it together, but it certainly explains one of the reasons why I have never had blow back.

    2Reply
  • Nicholas GlatterPro Member
    Investor · Tampa FL, USA · Member since 2019 · 72 posts · 20 votes
    5y

    @Hilary Graves

    I typically do but I hold multiple viewings in time slots on the same day to save time.

    I don’t typically let someone apply without seeing the house. I don’t want to waste their money if the place isn’t what they expected compared to pictures etc.

    You could have someone demanding a refund in person if it’s not what they hoped for.

    3Reply
  • Andrew S.
    Rental Property Investor · Helena, MT · Member since 2017 · 282 posts · 117 votes
    5y

    I would not be willing to pay someone $30 for them to show me the unit, there's a lot of pre-screening to be done on a application with employment, rental history, debt obligations, general questions.  I won't pay for a credit check to a car company before they allow me to see the vehicle or test drive it.  Some of the bigger property managers in nearby communities have made a bad name of themselves by nickel & diming $30 from a bunch of people.  I know many people who rent who openly talk about not willing to rent at a location managed by those companies. Negative word of mouth on your company would be hard to change around. 

    To reduce my wasted time - I schedule showings in a similar time range, somewhat like an open house. Will create some competition in prospective tenants and waste less of everyone's time. Seems normal to have a percentage of tire kickers.  My pre-screening questions also scare away some people.  I have a free application process, will select a tenant to move forward with, then they complete a Cozy background & credit check to verify nothing weird.  

    If they don't meet my credit/ background check criteria, then I run my next qualified applicant through that. 
    I don't tell my other applicants they weren't selected until I have a signed lease. 

    4Reply
  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    No we do not 
    they go through cozy background check 


    so they pay the fee directly to Cozy, not us 

    3Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Andrew S.:

    I would not be willing to pay someone $30 for them to show me the unit, there's a lot of pre-screening to be done on a application with employment, rental history, debt obligations, general questions.  I won't pay for a credit check to a car company before they allow me to see the vehicle or test drive it.  Some of the bigger property managers in nearby communities have made a bad name of themselves by nickel & diming $30 from a bunch of people.  I know many people who rent who openly talk about not willing to rent at a location managed by those companies. Negative word of mouth on your company would be hard to change around. 

    To reduce my wasted time - I schedule showings in a similar time range, somewhat like an open house. Will create some competition in prospective tenants and waste less of everyone's time. Seems normal to have a percentage of tire kickers.  My pre-screening questions also scare away some people.  I have a free application process, will select a tenant to move forward with, then they complete a Cozy background & credit check to verify nothing weird.  

    If they don't meet my credit/ background check criteria, then I run my next qualified applicant through that. 
    I don't tell my other applicants they weren't selected until I have a signed lease. 

     The credit check at a car company is a great example. Some car dealers do actually run credit on you before test drives. The difference is they pay the expense. When a mortgage company does pre-approval, they pay for the credit report. Assuming you close the mortgage through them, they charge it back as a line item on the mortgage. Usually the line item on your settlement statement is much more than the real cost of a credit report. You may see a $100 charge but the actual report costs the bank less than $15 in most cases. This spread is to make up for all the people who never write loans and to cover profit.

    2Reply
  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    This is great advice. I always bunch together tours. It's one thing to tell a prospective tenant tat there is interest in a property, it is another to have people waiting in line to see it. It also ensures that a no show doesn't waste your time.

    4Reply
  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    5y

    How about making a thorough virtual tour with a detailed floor plan available? That way you can pre-screen and if they pass that, let them have the virtual tour (they can go to the library and use the internet there if they don't have internet at home). If they are still interested, schedule a real tour. Then they can apply.

    The virtual tour does NOT have to be professional, just informative. You give them the internet address for the tour post and be done with it.

    2Reply
  • James Ma
    Burnaby, BC · Member since 2017 · 283 posts · 268 votes
    5y

    I phone screen to make sure they're a good fit and there's no red flags, discuss my expectations (ie. doing credit check) and then will set up a viewing time for them. If they like the place, they're welcome to apply at that point.

    1Reply
  • Jake KnightPro Member
    Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
    5y

    It may just depend on the market but most of our properties are viewed prior to submitting the application.  We also have an addendum in place if they don't view the property before leasing it.  We use Rently for our showing service and it's worked great for us.

    2Reply
  • Sean Blacker
    Rental Property Investor · Boise, ID · Member since 2015 · 7 posts · 6 votes
    5y

    @Hilary Graves I use a simple google form to pre screen. It has my criteria right on there to help avoid waisting my time. If they don't fill out the pre-screening I don't show it. After they look at it they can apply and pay for the credit and background check.

    5Reply
  • Cliff H.Pro Member
    Rental Property Investor · Nashua, NH · Member since 2014 · 607 posts · 485 votes
    5y

    @Hilary Graves as others have said pre-screening is different than pre-applying. You need both. Realtors and leasing agents are some of the most vulnerable workers out there for the simple reason that they’re exposed to situations that in any other sector would be considered dangerous or unacceptable: meeting strangers in vacant properties by themselves, collecting (often) cash payment on applications, walking strangers up/down stairs to areas of properties without windows or easy exit.

    That’s a recipe for disaster and one reason (among many others) I switched all my showings to a fully automated, self service, and prescreened process. Many have thought this idea crazy: “how could you let a complete stranger in your house alone?!” The better question is, “why is property safety more important than personal safety?” 

    We can talk all we want about differences in A/B/C class properties and that most people are good human beings and just looking to find their next home, but even if there's a 1 in 1000 chance of running into a serial killer with a nice voice on the phone why would any owner/Realtor/agent/PM take that chance? 

    A few related reads that reinforce this unspoken reality:

      4Reply
    • John Vietmeyer
      Investor · Johns Island, SC · Member since 2014 · 120 posts · 41 votes
      5y

      I don’t expect folks to pay for an “application” before showing the property. In fact, I don’t charge anything to apply.  I simply collect their info in a simple word doc then if they want to move forward, usually after seeing the property, I have them pay for the background check.  If everything in the background check validates what they stated in their application, I subtract the background fee they paid from their 1st month’s rent. 
      If they lied in their application, or don’t follow-through with the lease there is no $ out of my pocket, just some lost time. 

      At minimum I do make folks acknowledge my published criteria for tenants before taking time to show.  Often I don’t have a complete application at that point, but let folks know it’s preferred. 

      3Reply
    • Account Closed
      Frisco, TX · Member since 2021 · 36 posts · 11 votes
      5y

      @Filipe Pereira I read your post about making a google forum for tenant screening, pure genius. Thanks for the well thought out post!

      3Reply
    • Linda S.
      Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
      5y

      @Hilary Graves

      We normally have 2 showings on the weekends, Saturday 1-2PM and Sunday 2-3PM-- we tell everyone this time.    

      If there is a great tenant you want to ensure you have one on one with to see if it's a good fit and they've applied, you could tell them to come 15-mins early.    Hits on google mean nothing, sadly people applying, really doesn't mean much-- focus on those who you have personal contact with, whether they apply or not-- those people putting effort in will be worth it.  

      Personally, if someone applies-- I always call them, and hope to talk, but there have definitely been times even after applying, people don't even call you back, which shows the interest level. 

      I definitely wouldn't apply and spend $$ unless I saw it, and honestly if a rental place was charging me or saying I had to apply and spend $30 to look at it, I'd assume they'll be jerks and penny pinchers, and wouldn't want to rent there.      

      5Reply
    • Jill Iwanski
      Rental Property Investor · Marshfield, WI · Member since 2019 · 18 posts · 37 votes
      5y

      We require everybody to fill out a pre-application in order to schedule a showing. It’s just a form on our website that we made up. Doesn’t ask for major details like SS number. It gives us a chance to Facebook them and see what kind of people we are meeting at the showing. If they like what they see and we like them we offer them a chance to fill out the rental application. What we have learned over the last 4 years of using the pre-application is that the people that won’t fill it out you don’t want as tenants anyway and we don’t waste our time showing the unit. The people that are willing to fill out the pre-application almost always follow up with a rental application and are qualified to rent from us. We maintain very strict criteria and have had great success using it.

      3Reply
    • Dominic A.
      Property Manager · Nova Scotia · Member since 2021 · 78 posts · 52 votes
      5y

      @Hilary Graves I’ve seen a few different approaches, the best option seems to be a free application with consent to run a background check etc. later.

      If they’re not willing to apply for free, they’re disqualified; but if the turn down a paid application..they might just be smart/careful with money.

      Depends on how hot the market is I suppose, but free application is my vote. Give me a dm if you want some recommendations for great free applications that will actually “convert” (get filled out and submitted).

      3Reply
    • Heather Ramsey
      Member since 2019 · 3 posts · 2 votes
      5y

      @Hilary Graves

      I would never apply for a house I didn’t see before. What if I hated it the second I walked in

      2Reply
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