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Jason Sousa
  • Austin, TX
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To Show Or Not To Show Before An Application is filed?

Jason Sousa
  • Austin, TX
Posted Apr 4 2023, 08:02

Hey BP members. I am having a great deal of issues getting renters to sign an application to see if they qualify before showing the property. It seems like renters want to see the property before they file an application with my company. Any suggestions? Or what do you do in these circumstances?

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Scott Mac
  • Austin, TX
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Scott Mac
  • Austin, TX
Replied Apr 4 2023, 08:18

Show them the property, take an application if they like it, then if they pass background, collect all money, and trade keys for a signed lease.

Get ID before going out there alone and and leave the ID in a conspicuous place with a note saying where you are going and why (in case they are bad guys).

Always keep yourself between them and the exit--so you can be the "Road Runner" if trouble pops up.

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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Replied Apr 4 2023, 08:21
Aloha,

Expecting someone to provide the typical personal info on an application before even seeing the unit is not realistic, given what a person could do with that info. Depending on your market, you may have success "pre-screening" with no more than 3 to 5 questions you ask every interested party, such as: What is the total household gross income? How many total people will be living there if approved? Have you ever been evicted or do you have any current "collection" accounts? Do you have any animals?

This will weed out many of the undesireables, then, when you show the property, you can gauge their interest if they actually ASK for an application. I provide further details of the application process at that point, such as when SD etc. are due and HOW they must be paid; how soon before we must start charging rent; who must apply and sign the Rental Agreement; how rent is to be paid after the initial month and what the due date/grace period is. I also explain what else is needed to be submitted with the application such as paystubs, savings statements, etc. For MF properties, we also require copies of current vehicle registration etc.
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Scott Mac
  • Austin, TX
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Scott Mac
  • Austin, TX
Replied Apr 4 2023, 08:25
Quote from @Richard F.:
Aloha,

Expecting someone to provide the typical personal info on an application before even seeing the unit is not realistic, given what a person could do with that info. Depending on your market, you may have success "pre-screening" with no more than 3 to 5 questions you ask every interested party, such as: What is the total household gross income? How many total people will be living there if approved? Have you ever been evicted or do you have any current "collection" accounts? Do you have any animals?

This will weed out many of the undesireables, then, when you show the property, you can gauge their interest if they actually ASK for an application. I provide further details of the application process at that point, such as when SD etc. are due and HOW they must be paid; how soon before we must start charging rent; who must apply and sign the Rental Agreement; how rent is to be paid after the initial month and what the due date/grace period is. I also explain what else is needed to be submitted with the application such as paystubs, savings statements, etc. For MF properties, we also require copies of current vehicle registration etc.

 Why do you require copies of current vehicle registration?

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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Replied Apr 4 2023, 08:33
Quote from @Scott Mac:
. For MF properties, we also require copies of current vehicle registration etc.

 Why do you require copies of current vehicle registration?

To monitor, and where necessary, tow, unauthorized parking or dead storage and abandoned vehicles. All vehicles must have current registration, safety check, and be operable. It is also important to know the authorized vehicles belong to our Residents, and not additional, unauthorized, occupants.

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Scott Mac
  • Austin, TX
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Scott Mac
  • Austin, TX
Replied Apr 4 2023, 08:40
Quote from @Richard F.:
Quote from @Scott Mac:
. For MF properties, we also require copies of current vehicle registration etc.

 Why do you require copies of current vehicle registration?

To monitor, and where necessary, tow, unauthorized parking or dead storage and abandoned vehicles. All vehicles must have current registration, safety check, and be operable. It is also important to know the authorized vehicles belong to our Residents, and not additional, unauthorized, occupants.

So if registration is not current you have them towed from a SFH?

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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Replied Apr 4 2023, 08:52

Here, what is referred to legally as an "abandoned vehicle", is any vehicle with expired registration or safety check. Tow companies claim that due to very low steel prices, it costs them to haul these to storage and process them, ultimately crushing them for scrap price. They charge property owners around $500 to remove these abandoned vehicles. On the other hand, vehicles with current registration and safety check they will remove at NO cost to the property owner, as they expect the vehicle owner will retrieve them from their storage lot for a profitable fee; and they assume the vehicle was operable when parked, so has much more than scrap value.

To answer your question, we generally only monitor parking in multi-family properties where we assign specific parking stalls to Residents. Some of these properties might have a "guest stall" or two, many do not. With regard to single family (detached) homes, we do not typically require vehicle info, BUT, if I see an unlicensed vehicle or a wrecked or major project, I might issue a notice of violation to the Tenant, or at least discuss it with them. Property Owners do NOT like getting stuck with a $500 tow charge because a tenant vacated without proper notice.

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Amanda Janes
  • Property Manager
  • Nashville, TN
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Amanda Janes
  • Property Manager
  • Nashville, TN
Replied Apr 4 2023, 09:30

@Jason Sousa - in all my experience, 99.9% of local prospects want to tour the property before putting in an application.

This is something that I encourage to avoid prospects arguing to get their application fees back (yes, even when informing them upfront they are non-refundable).

And 100% recommend they tour before signing the lease to avoid unhappy tenants that want to break their lease.

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Ned J.
  • Investor
  • Manteca, CA
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Ned J.
  • Investor
  • Manteca, CA
Replied Apr 4 2023, 15:12

I don't want to deal with an application unless they have actually looked at it and I've met them in person. Then if they are interested, we go to the next step of a formal application. I "pre-screen" by having all my criteria in the listing and in any contact I have with the interested party. If they don't meet the criteria, 99% of them move on and don't waste my time with showing or applications. 

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Adah N.
  • Investor
  • Atlanta, GA
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Adah N.
  • Investor
  • Atlanta, GA
Replied Apr 4 2023, 17:56

@Jason Sousa

Some people have the liberty to request application before showing, if property is in a high demand area. Consider Open House style showing to interested parties.

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Jason Sousa
  • Austin, TX
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Jason Sousa
  • Austin, TX
Replied Apr 4 2023, 20:13
Quote from @Scott Mac:

Show them the property, take an application if they like it, then if they pass background, collect all money, and trade keys for a signed lease.

Get ID before going out there alone and and leave the ID in a conspicuous place with a note saying where you are going and why (in case they are bad guys).

Always keep yourself between them and the exit--so you can be the "Road Runner" if trouble pops up.


 That information is so helpful and thanks so much.

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Jason Sousa
  • Austin, TX
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Jason Sousa
  • Austin, TX
Replied Apr 4 2023, 20:15
Quote from @Richard F.:
Quote from @Scott Mac:
. For MF properties, we also require copies of current vehicle registration etc.

 Why do you require copies of current vehicle registration?

To monitor, and where necessary, tow, unauthorized parking or dead storage and abandoned vehicles. All vehicles must have current registration, safety check, and be operable. It is also important to know the authorized vehicles belong to our Residents, and not additional, unauthorized, occupants.

 Thanks for the great tips. The 5 questions seem super helpful to "weed" out the bad apples.

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Jason Sousa
  • Austin, TX
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Jason Sousa
  • Austin, TX
Replied Apr 4 2023, 20:16
Quote from @Amanda Janes:

@Jason Sousa - in all my experience, 99.9% of local prospects want to tour the property before putting in an application.

This is something that I encourage to avoid prospects arguing to get their application fees back (yes, even when informing them upfront they are non-refundable).

And 100% recommend they tour before signing the lease to avoid unhappy tenants that want to break their lease.


 You are right, I mean I would want to tour a home before I bought it for sure. 

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Jason Sousa
  • Austin, TX
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Jason Sousa
  • Austin, TX
Replied Apr 4 2023, 20:16
Quote from @Ned J.:

I don't want to deal with an application unless they have actually looked at it and I've met them in person. Then if they are interested, we go to the next step of a formal application. I "pre-screen" by having all my criteria in the listing and in any contact I have with the interested party. If they don't meet the criteria, 99% of them move on and don't waste my time with showing or applications. 


 What sort of criteria do you look for?

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John Matthew Johnston
  • Investor
  • Beaver Falls, PA
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John Matthew Johnston
  • Investor
  • Beaver Falls, PA
Replied Apr 5 2023, 07:47

@Jason Sousa

I always get the initial application before I schedule a walk through. If everything looks good ( Income, animals, amount of people living in house, credit score, no history of past eviction or felony I will show them the place, if they like it I have them do a background and credit check on their dime and as long as everything looks ok I collect first months and security deposit and hand them keys.

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Kerry Noble Jr
Pro Member
  • Investor
  • Indianapolis, IN
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Kerry Noble Jr
Pro Member
  • Investor
  • Indianapolis, IN
Replied Apr 5 2023, 10:21

We generally do showings and then they apply if they like what they see. A lot of people are conscious of all of the application fees and want to minimize the costs

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Ned J.
  • Investor
  • Manteca, CA
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Ned J.
  • Investor
  • Manteca, CA
Replied Apr 5 2023, 10:40

@Jason Sousa

Mine are :

Income of 3x rent...verified with current employer- this is the biggest one

Deposit is full month rent

Credit score above 600

No bankruptcy or evictions in the last 10 years

Positive previous/current landlord references

Background check with no felonies or violent crimes

No smoking

Pet are subject to approval and require $800 per pet deposit

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Tom B.
  • Investor
  • Southern Arizona
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Tom B.
  • Investor
  • Southern Arizona
Replied Apr 6 2023, 12:02

I don't blame them, whenever they call or email asking for a "tour" I ask them my questions (11 of them) to see if they are a good fit. Without exception every time I'm in a hurry and forget to ask these questions I regret it, they want to move in in 6 months, they need to see if they can afford it, they want to comeback with their spouse.... ever since I took control of the conversion I went from showing the home from 10 people to 1-2 before it's rented.

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Laurel Chauvin
  • Realtor
  • Austin, TX
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Laurel Chauvin
  • Realtor
  • Austin, TX
Replied Apr 6 2023, 13:59

I worked with a lot of lease leads when I was a new agent. What I found to work best is sharing the qualifying criteria with the potential tenant before offering to show the property. I found that the majority of the leads would let me know if they did not meet certain criteria. Also, check on their preferred move-in date. Some people start looking really far out from when they intend to move.

I have a standard message I send to all leads before showing to make things much more efficient for all parties.

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Jason Sousa
  • Austin, TX
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Jason Sousa
  • Austin, TX
Replied Apr 6 2023, 14:20
Quote from @Laurel Chauvin:

I worked with a lot of lease leads when I was a new agent. What I found to work best is sharing the qualifying criteria with the potential tenant before offering to show the property. I found that the majority of the leads would let me know if they did not meet certain criteria. Also, check on their preferred move-in date. Some people start looking really far out from when they intend to move.

I have a standard message I send to all leads before showing to make things much more efficient for all parties.


 Thank you so much for the tips and tricks. I need to get a conversation going and qualify verbally. 

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Tom B.
  • Investor
  • Southern Arizona
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Tom B.
  • Investor
  • Southern Arizona
Replied Apr 6 2023, 14:47
Quote from @Laurel Chauvin:

I worked with a lot of lease leads when I was a new agent. What I found to work best is sharing the qualifying criteria with the potential tenant before offering to show the property. I found that the majority of the leads would let me know if they did not meet certain criteria. Also, check on their preferred move-in date. Some people start looking really far out from when they intend to move.

I have a standard message I send to all leads before showing to make things much more efficient for all parties.

Do you mind sharing?

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Laurel Chauvin
  • Realtor
  • Austin, TX
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Laurel Chauvin
  • Realtor
  • Austin, TX
Replied Apr 6 2023, 15:07

Absolutely. I also try scheduling multiple showings for a specific lease property all within the same time window for efficiency. A Saturday morning works best.

Here you go..

Hi Tom, my name is Laurel with Realty Austin. I am following up on your interest in 123 Main Street. I am happy to help you. Would you like to see the property?

Please note that the application criteria includes a credit score of about 620 or higher and that you are making about 3x the rent in income. The application process also includes a check on good rental history and a background check.

Let me know if you would like to see the property and when your preferred move-in date would be.

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Joe Scaparra
  • Investor
  • Austin, TX
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Joe Scaparra
  • Investor
  • Austin, TX
Replied Apr 9 2023, 18:15

Ok, I will chime in.   First understand that the rental market is hot in Austin.  Maybe not as hot as 9 months ago but still very HOT!  With that as a background.  

Yes, I absolutely get an application before they get the PRIVILEGE of viewing my property.  You see my properties are duplexes and I keep my units in VERY above -average compared to the other duplexes.  As such, it is my experience that if I have a good match before showing they are going to take my unit.  I don't want to waste their time or MINE!   Because my units rent out between 1600-1900 I have plenty of prospects.  Asking for an application also eliminates the tire kickers!

Here is my kicker.........I charge $40 per applicant over 18yrs old, BUT I don't collect the fee unless I accept them and they take the property.  So those who don't want to "waste" an application fee is not discouraged to apply.  I also go through many questions mentioned above should I actually talk with them as they inquire.  I don't take application fees and then decline the prospect!  I usually show the property to one prospect because of this process and I like it very much.   I enjoy showing my property ONCE!  I take lots of pride in my properties but I only want to show it once!  My rule is that if I don't show a property within 24 hours of first inquiry you will not get that tenant.  If you don't get a committment on the showing they are usually not going to become a tenant.  Cheers!

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