FTLL : return credit check fee?

General Landlording & Rental Properties
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FTLL : return credit check fee?

Brad S.
Investor · Mission Hills, KS · Member since 2015 · 59 posts · 11 votes
Hello First time land lord here, I am about to fix and rent my first investment, planing a day of open house and hand out application that people can fill and return with 35$ credit check fee, from what I gathered after talking to neighbors and my agent, I can expect multiple applications (I have had several people leave their phone number while I am still fixing the property). Ideally I would like to run credit check on all applicants and pick up the one with strongest job / credit and rental history, is that advisable or should I check in order of first come first serve and return back the application fee of others. Also would love to know your choice of website for credit check / other verifications. Thanks for your time !
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  • James DeRoest
    Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
    11y

    Screen in order. Beauty contest screening is scumbag landlording.

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  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    11y

    First off, decide your criteria for renters. Credit score over 500 or 750? Are past evictions ok with you? Criminal history?

    A landlord gets into hot water when they pick and choose what criteria to accept - it's called discriminating.

    I get that you want the best tenant in the property. A little more work upfront can remove a lot of the hassles. One way around this is to tell every single applicant exactly what your criteria is. Let them know that once you run their background, you will not be returning their background fee. That they are free to apply, but here is exactly what you need to qualify.

    Most tenants who are significantly sub-par will hear these words and not bother applying, because they don't want to be out the $35. Take the rest of the applications and run them in the order you received them. The first applicant who meets all the criteria wins the property, the rest of the application fees should be returned. 

    BiggerPockets recommends MySmartMove for background checks. You create the account as landlord, and you send the prospective tenant an email invitation to fill out the application. You get the results.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
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