What do you do when you get an overwhelming response?

Question

Normally,  I get about 40-60 people over a couple of days when I market this house.  We joke that everyone in the area that is looking for a place calls when the house goes up for rent because it is year round and cheaper then most of the rentals in the area.  This time I got 80 people just from zillow in the first day. I shut off the ad.

I am confident in the rent price but just curious what others do about showing in this case. Do you refuse showings at a certain point?  I set up open houses on 2 days but I had to stop inviting people because I am thinking it will be too much.  Everyone got a video tour and I got positive feedback from some people I did not invite to the open house. However I am pretty sure I have got some good candidates already.  I also got alot of single people for a 3 bedroom, never had that happen before but I think there is nothing for rent now.  I don't rent site unseen for this house and I don't accept zillow apps so that may weed some out.

My ideal renter is longer term, settled in the area and not high maintenance with good steady income.  Any thoughts?

Nathan Gesner · Answer

If you get that many responses, you are under-priced for the demand.

You can filter a lot of those out by including some self-screening information in your ad. Tell them what the application fee will cost, that you will need an application for each adult, that every adult will be screened for credit/criminal, that they must prove a combined income of 3x the rent, each applicant must have a credit score of 650, pet restrictions, or whatever is important to you. I recommend no more than 3-4 key screening requirements. That should cut out a large chunk of the people that aren't serious.

For everyone else, talk to them by phone or text and ask them 3-5 of the most important questions. If they're still serious, set up the showing.

If you price it correctly, you won't get 80 lookers. If you give them some information they can use to pre-screen themselves, you'll cut out another chunk. If you screen them by phone, you can cut out another chunk.

When I first started, I used to get 20-30 requests per listing, easy. Once I added some filtering tools, I now get no more than 5-6 before finding a renter. The tire kickers just don't bother.

Chris Seveney · Answer

@Colleen F.

In the past we would do an open house and have applications there. Show property for several hours and have people come at that time. That way it’s more convenient for whoever is showing it

If it doesn’t rent do same thing following weekend.

Colleen F. · Answer

@Nathan Gesner  I know low rent and standards can be an issue.  Actually I keep the standards high but an 800 credit score and 4-5 x income means they often are using the rental as a placeholder until they buy a house in say a year especially when I get a single person applying like this. Then there is all the turnover cost.

650-700 credit score, long time in the area with rental history and income around  3x rent has a better chance of staying. That is my sweet spot.

I got about 10 total shows out of the crop of inquiries so far.  I had people say they were definitely coming who just didn't show so it isn't as out of line with previous years as my initial impression. Might be a little low but like I initially thought.

Melissa Hartvigsen · Answer

I limit applications to two because in Oregon we are required by law to process applications in the order they are received and must refund application fees to any one whose application I did not process. That probably is not required where you operate, but employing this strategy will still save you time. If your first two applications down work out, you will have a few more people that wanted one and you would email them the application next.Because you prioritize long term tenants who will take care of your property, why not incorporate this into your initial screening questions as a requirement to view the property?  Only make appointments for the people who "pass the long-term tenant criteria" you are seeking. "How long did you live at your current rental?""Why are you moving?""How long to you plan to live at your new home?"

Chris Merchant · Answer

Almost like group showings, which lets people know they need to decide and act quickly just like when realtors sell homes and try to get people to make their decision quickly this sort of does the same thing.  It lets the people at the viewing that there is competition for the property and with that much interest you could probably even set a deadline as to when you will stop accepting applications, I would say if you do 2 open houses then maybe stop accepting applications 72 hours after the 2nd showing.  Then you can begin your process and hopefully get a good tenant quickly.  If nothing else those that feel they won't qualify won't waste your time with an application and those that would qualify and are quality tenants will submit their application probably before they leave the showing.  You will know who is serious and who just wants to look at a beautiful house in a beautiful area!

Melissa Hartvigsen · Answer

Hello @Colleen F.

Narragansett is beautiful, I have some friends who live there. Getting 80+ in renter inquiries the first day tells me that your price is too low.

I am based out of the Portland Oregon area, and have experience with rental properties dating back to 2011.  This is the way that I do it.

I look for a rental comps for my property, and if my property is significantly nicer than the others, or there just isn’t anything for a comp, I start my price on the high side. If I don’t get at least five to ten leads a day, I drop my price every couple of days until I get to that threshold.

When I respond to leads, I have an email template that I use and I paste the same reply to each lead.  “Thank you for contacting me about my rental listing at (insert address here).

Before I provide an application, or schedule an in person viewing, please confirm that you have watched a video tour and are interested in the property.

(Insert video link here)

Also, I am a hands-on landlord, who manages my own property. I will be checking rental references. Please let me know in advance if your landlord will have anything negative to say when I inquire about your rental history.

I look forward to hearing from you soon”.

I only contact people for appointments at my rental who substantively respond to the email.  Based on some responses, I have opted not to make appointments for some people. For example, I only allow two pets: one person emailed me back and told me the reason they were moving is because they had ten cats and two dogs, and their landlord was going to evict them for violating the pet policy.  I politely emailed that person back and let them know that the number of pets they had exceeded what I can accept at my property. I wished them in their search.

Doing this generally gets me five to six people that come to my open house. If someone responds and cannot make it to a time that is convenient for me, I let them know that I will only book an appointment for them if I don’t receive applications at my open house.Then, I provide applications via email after I have met prospective renters. I advise all parties that I process applications in order of completion. Once I have received two applications, I email anybody else who came to the open house to let them know that I already have two applications, and will not be processing any others unless the first applicants don’t work out.

It is a lot easier to manage this way.

I hope you find this to be helpful!

Melissa

Colleen F. · Answer

@Ned J.  Actually for my first open house only about 1/3 showed up so I had 8 of those who were invited, but all around the same time.    I got a few applications already.  Not as out of line with previous times as I thought.

Last time my best applicants were "outside" smokers, never again.

I have more  high quality  applicants this time though.  Not alot of she's got good credit but I don't.  or well I didn't mention....

Ned J. · Answer

If you have all your criteria listed in your add...... income, credit and background requirements, pet/no pet, LL referrals etc etc etc and you are still getting 80+ in 24 hrs you are underpriced for sure. Having ALL you criteria blatantly listed up front and even stated again when they inquire, is the first screen for tire kickers....if you dont meet these, then dont bother.... if they keep past that and you get 80 inquires, your demand is crazy and your price needs to go up.

I do group showing...... I may get 40 inquires..... 30 "I'll be there" and 8-10 actually show up. If they all show up, then so be it...competition helps me. Not a big deal. 8-10 show up, and maybe 40-50% actually put in an application.

Chris Seveney · Answer

Then see what nathan wrote, you are underpriced.

What do you do when you get an overwhelming response?

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