So the workflow that I'm reading on the forums is this: 1. List the property for Rent 2. Prospective Tenant fills out a pre-qualification form 3. If passed -- invited to complete a Rental Application + pay $49 for a complete Background check (credit, criminal and rent history) 4. if approved -- invited to schedule a showing of the Unit 5. After the showing -- invited to sign the Lease
Is this a good workflow or do I need to change anything?
Good tenants are not going to pay an application fee before viewing a unit. It screams of being a scam.
I'm not sure if it's true. It might be a seasonal and geographical change, but I remember that when I helped a friend and co-signed on a lease --- we had to fill an application and pay for a background check BEFORE we were shown the property. that was 2021 or '22 though.
I remember that our application and credit check was good for 90 days or so and we could view multiple properties with that.
So the workflow that I'm reading on the forums is this: 1. List the property for Rent 2. Prospective Tenant fills out a pre-qualification form 3. If passed -- invited to complete a Rental Application + pay $49 for a complete Background check (credit, criminal and rent history) 4. if approved -- invited to schedule a showing of the Unit 5. After the showing -- invited to sign the Lease
Is this a good workflow or do I need to change anything?
Yes, flip 3 and 4 around. Like @Russell Brazil said, you should show the listing before any money changes hands, even if it’s just the application/credit/rent history check fee.
Pre-qualifying prospective tenants is fine; you can cut down on your workload and show to high-intent renters that way. But again, definitely offer showings before you ask prospective applicants to pay a fee.
Property Manager · Phoenix, AZ · Member since 2024 · 534 posts · 205 votes
9mo
I agree with flipping the showing and the paid application step.
Pre-screening before a showing makes sense and saves time for everyone, but once money is involved, most good tenants expect to see the property first. Even if the fee is strictly for background and credit, many renters still view it as an application fee and will be hesitant without a walkthrough.
What I have seen work well is listing the property, doing a quick pre-qualification, showing the unit, then collecting applications and screening fees only from people who have seen it and want to move forward. You still filter out low-intent prospects, but you avoid scaring off solid tenants.
There are markets and property management setups where one background check can be reused across multiple listings, but that tends to be the exception rather than the norm. In most cases, showing first and then charging keeps the process cleaner and builds more trust with applicants.
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9mo
@Vladimir Lukyanov
This is how I market my properties.
List it on Zillow, trulia, hot pads, Redfin? Apartments.com, etc
Pre-approve applications. This is a simple application with no background or credit checks. Prior rental history, number of people, employment, income, etc. This allows you to confirm if your requirements are met at least from income 2.5 - 3 times the rent.
I also hold open houses for my rentals similar to one buying a house. It creates interest and competition among prospective tenants. Always have applications available both in paper form and digital. Interested perspective tenants will return the application quickly.
Once I have a tenant who meets the qualifications then the background and credit check is conducted.
If everything checks out then the lease is drafted up, deposit is submitted and lease is signed.
I use a scoring model for applicants to avoid being accused of discriminatory actions. Everyone gets scored. The first qualified applicant is selected. If multiple applicants at the same time then the most qualified. You can have more than one qualified applicant, but you will need a method how you pick one over the other. You will need to submit a written response to any applicant not chosen. Remember you must follow your state and or County, and or city requirements depending on your jurisdiction.