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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  • Alexander Szikla
    Real Estate Agent · New York City · Member since 2020 · 819 posts · 641 votes
    5y

    Would you pay money and spend time compiling information before seeing a unit?

    1Reply
  • Julie Hartman
    Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
    5y
    Originally posted by @Hilary Graves:

    I do wonder though, do I need to send an official “rejection” form to explain why we are not showing the property to certain people (such as “you did not meet the minimum credit score requirement”) and can I put this form in my own words? 

    If you are phone screening, and they don't meet the criteria, you let them know at that time. If you are doing a pre-screen via a questionnaire and they don't meet the criteria, I would just not respond. Most of the time, applicants are sending out mass inquires and tend to forget who they've replied to. And honestly, the less said in writing, the better. The only time you are obligated to send a formal rejection form would be if you did the full background check and rejected the application based on credit, etc. I would check with your state laws about that. In CO, we are required to send a Reason For Denial Letter and can combine it with an Adverse Action letter when rejecting an application. 

    1Reply
  • Jeroh Odafe
    Rental Property Investor · Phoenix, AZ · Member since 2019 · 15 posts · 9 votes
    5y

    @Hilary Graves that's one of the rookie mistakes I made but my wife was there to help. It is actually best you do a showing but like other comments have said you need to prescreen them so you will not be wasting your time and theirs. Have a prewritten screening and most people that don't qualify will not even bother contacting you after you send it to them. If they qualify then show it to them so they can verify interest. Also, that prescreening write up should be same for every interested person so you don't get a lawsuit for discrimination or a protected class etc. What I normally use:

    Yes it is still available but will be ready for move in #/#/2021. To schedule a tour, you will need to meet these requirements.

    Do you make or have a combined income 3 times the rent ($####### minimum monthly)?

    Is your credit score on or above ###? ### qualifies you for $### deposit.

    No felonies, collections or evictions will be approved.

    Do you smoke? Smoking inside the unit is NOT allowed.

    Filed bankruptcy in the last 7 years?

    Can you show stable employment for the last 2 years?

    A background check and credit check will be needed to move in the unit.

    If you meet these requirements, we can then schedule you for a tour and if you like the unit after seeing it, you are welcome to apply. The application fee is $30.

    Thank you for your interest!

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

    @Hilary Graves,

    Personally,  copy/paste is my best friend!   I send the exact same basic paragraph to EVERYONE.   Takes me minutes, and I also know everyone has all the information, including the showing time!   

    Why waste time reviewing applications, if maybe they won't even show up?     I'd say 90% of those who apply before seeing it and talking with us, aren't qualified.  I also won't ever rent to someone who doesn't at least reach out to me first, as it shows the type of relationship they want.

     I do the 2 large showings, and I print out flyers to pass out at the showing-- clearly stating all the qualifications,  what's included/not included, and basic questions.   This way people can take it home, think about it (they know if they meet it or not), and then they can apply.  I don't like wasting time on unqualified people, and I don't like them wasting money on application fees. 

    Don't make this harder and more time consuming than it needs to be, copy paste, and focus on who shows up-- those are your only actual prospects IMO!     It's one thing to apply and spend $$, it's another thing to get in the car, see the place, and see if they are your type of tenants!

    2Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    5y

    I dont know about others, but when I buy a new building in a new location, or when I was new to LLing, I welcomed showings so I could practice my sales/marketing pitch and gauge reaction to various ways of saying the same thing....  market research you could say.... learning how to sell your unit is a skill most need to acquire so you can learn how to be a good sales person! 

    2Reply
  • Dillon Cook
    Realtor · Greater Tampa Bay · Member since 2014 · 219 posts · 130 votes
    5y

    Very customary in the Tampa area to show prior to receiving applications. Sometimes we receive applications sight unseen, but we still prefer to show the property to reduce any liability. Like others have mentioned, it also gives you an additional screening process. Great comments in this thread!

    I've done thousands of rental showings. After just a few, there are some small indicators you start to pick up on. One of the biggest things to me, personally, is them being respectful of your time and making a strong effort to arrive as scheduled. Not 15-20 minutes late without explanation.

    Also, showings set us apart from the scammers (which are ramping up to the highest levels I've ever seen), and it reduces any backlash you have of someone applying sight unseen and claiming the property is not like the pictures online.

    3Reply
  • Amanda Bruneau
    Real Estate Agent · Providence, RI · Member since 2020 · 41 posts · 29 votes
    5y

    I always prescreen a tenant on the phone before showing a unit, especially because my units are an hour away. I want to make sure they are serious and meet the following criteria: timeline aligns with when I want to rent the unit, a credit score of 700+, no pets, no smoking, income to meet or exceed 2.5X-3X the rental amount, references and I tell them in advance I will be doing a background check. If someone meets this criterion then I show the unit, but typically I do not want someone to fill out an application until I have verified the prescreening and they have seen the apartment. I don't want someone to spend money if it is not the right fit. 

    1Reply
  • Anna Neal
    New to Real Estate · Parrish, FL · Member since 2021 · 25 posts · 14 votes
    5y

    @Joe Splitrock awesome, thank you so much! Very much appreciated

    0Reply
  • Hilary Graves
    OP
    Member since 2020 · 22 posts · 12 votes
    5y

    Loving all these great tips from everyone -thank you !!!!!!

    Another question - can I write the denial letter to applicants (based on them not meeting our credit score requirements) and send it in an email?    Or does it need to be sent through the actual mail?  Thank you!

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Hilary Graves  well I do qualify them and usually can tell if they are real or not. 

    0Reply
  • Julie Hartman
    Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
    5y
    Originally posted by @Hilary Graves:

    Loving all these great tips from everyone -thank you !!!!!!

    Another question - can I write the denial letter to applicants (based on them not meeting our credit score requirements) and send it in an email?    Or does it need to be sent through the actual mail?  Thank you!

    I would see what your state laws and/or RE commission say constitutes acceptable methods of notification in these cases. We send via US post as well as email just to cover ourselves. 

    0Reply
  • Steve Bracero
    Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    5y

    I pre screen, then show to qualified folks. View then apply is how I complete this 

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

    @Anna Neal I tell interested parties to bypass that portion of the application. They will only be asked to go back and complete it if we are moving forward after the showing.

    0Reply
  • Ika Sargeant
    Real Estate Agent · Reston, VA · Member since 2017 · 296 posts · 163 votes
    5y

    @Hilary Graves yes it’s customary to show before you make an application.

    0Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    5y

    @Hilary Graves

    I do this if it suits me at the time.

    As I monitor the work done in a vacant property, I sometimes get the stragglers just looking.

    Usually I make the time, as this could be the renter I will be leasing to for the next 3 to 5 years. I don't make a special trip Usually, but I always love to take these tines to ask questions too!

    The application and fee is done for everyone, so my legal staff stays happy, and the investigations and deposits are concluded before access is granted.

    [email protected]
    0Reply
  • Emmanuel Reyna
    Navarre, FL · Member since 2015 · 9 posts · 3 votes
    5y

    @Hilary Graves

    Yes

    0Reply
  • Matt Leber
    Rental Property Investor · Orlando, FL · Member since 2015 · 353 posts · 269 votes
    5y

    @Hilary Graves I send each potential a list of quick yes/no pre-screening questions before I arrange a showing. These are meant to identify any major red flags.

    If they look good on the prescreening, I’ll set up a showing and invite them to begin filling out an application via email. Sometimes they bring the filled out app to the showing, sometimes not. I also have paper applications available while the showing is going on.

    0Reply
  • Esther Seme
    Member since 2021 · 21 posts · 2 votes
    4y

    @JD 

    @JD Martin Do you mind sharing the free application that you use please? 

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    4y
    Quote from @Esther Seme:

    @JD 

    @JD Martin Do you mind sharing the free application that you use please? 

     Hi Esther, just click on my company name below (tricityrents.com) and you'll see it under "Apply Now". If you want to see all the fields, just make up data (use this name so I know it's you) and go through the application process. That will let you see what we ask and how everything is laid out. 

    Podcast Guest on Show #243
    Skyline Properties
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    0Reply
  • Patrick M.
    WI · Member since 2018 · 123 posts · 69 votes
    4y
    Quote from @Joe Splitrock:

    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.

     @Joe Splitrock do you mind sharing your four questions? Thank you 

    0Reply
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