Hey Christian, 60 applicants in less than a week is a lot. My first thought is that your rent is indeed too low. How does your rent amount compare to the rent amount of similar units in your market?
@Curtis Mears thats a great system, I will do something similar next time and also what @Jill F. Mentioned about not showing the place until an application is complete
@Michael Noto the application was through zillow, they pay zillow to have the application processed. Yes, i did have minimum requirements, 3x rent, credit score, no prior evictions. Still received applications that did not meet minimum requirements
If you get too many applicants, the price is too low. If you get too few, the price is too high. To me, I think the sweet spot is 5-10 applications in the first two weeks. Screen the applicants carefully and consider running a background / credit check.
With that many people coming in to see, make sure to check your address for rentals in facebook marketplace. It is common for people to put up fake adds and pretend they are the owner of the house and take peoples deposit.
Hi, I just put a unit for rent on the market. I have received about 60 applicants in less than a week. Is my rent too low or is that average?
In going with the title of this thread, "How many applicants is too many?", my answer would be "anything beyond the first qualified applicant.
That said, remember that we're in a housing shortage right now. Lotta renters are looking to move and sellers can get offers above their asking price / bidding wars.
... and THAT said, remember the current economic / jobs situation. Vet applicants carefully!
@Christian Orozco - Definitely do not show the unit to anyone until you have their application, income verification, a clear background/credit, etc., and proof of identity. Then schedule one or two showing times and let them all show up together. I control flow at the door in the age of COVID, taking them in order and giving each person 15 minutes to walk through. Before COVID I just let them walk through at the same time.
If you have 5 well qualified tenants at the end of your process, your rent is probably about right. Even if it is a little low, don't be afraid to leave a little room in it. Tenants who feel like they are getting a good deal, pay quicker, take better care of your property, call for fewer repairs, and - most valuable of all - stay longer. An extra $100/month is nothing compared to a tenant who stays for 7 years and pays on time every month!
I'll be a slight outlier...and I'm also going to note you should look at comments vs. geographic location, and you'll notice some general trends with the process. I meet and view before anyone applies, mostly because people want to see the home and because it is actually easier to do a 'showing' one and done.
In SoCal I usually get 15 people interested and I allow all to walk through one day 15 min apart (during Covid), of which 8 will show up. From that I'll get 2 app's or so. Sometimes I may get an app before hand like if they already have the zillow info completed. Those app's will result in 1 tenant. The last time I did that I listed on a Wed, walk through first thing Sat, completed app by Sun morning and approved Mon night and only because I dawdled getting employment confirmation Mon afternoon instead of first thing. So I don't have a ton of view and applications, because its only on the market for 4-5 days tops.
I've also rented homes in Central Fl and there it is a couple weeks with responding to prospects saying 'drive by and let me know if you're interested in applying and viewing the home'. That whole process can take a couple weeks, but I get more overall traffic with less motivation to move quickly on applying.
So overall I think your process was good, and I think your price was probably right...but didn't account for Covid. When I re-rented in Aug I was concerned I couldn't push the rent. I had no problem finding someone moving out of a small beach apartment looking for space to work and play at home. You likely had a similar result along with being a 'home' amongst apartments.
As far as rent control and rent raises, just be aware that you may not be under LA rent control, but there is a new State law regarding rent increases capping it at 5%+CPI for your area. That's actually not too restrictive today, but just make sure you understand the numbers so you ensure you comply with whatever raises you're allowed. At a turn-over there is currently no restriction and you could increase to market at that time even if it is greater than the 5%+CPI.
@Christian Orozco I definitely agree with others about the low rent rate. I follow the exact same process as Jill F. and Curtis Mears when it comes to weeding out unqualified applicants. I just went through a similar situation and I had about 30 people reach out to me within 2 days. I immediately knew then my rents were too low. Before contacting anyone I raised the rent by $200 then sent everyone with interest the new revised listing. At that point, I only had 8 that were still interested, and they had to pre-qualify before tours were scheduled. Only three families met the requirements and this process will save you an abundance of time to use more wisely to find more deals or spend with the family. Congrats on the progress.