Duplex owner occupied, how to get Good tenants?

Question

I have a duplex and am placing it on the market. It is owner occupied. I have posted my listing but I wonder if I am being too restrictive. I have had people express interest but they want to know the exact address not just a nearby landmark etc.  They also want a showing as well, all before I know if they are even prequalified. I am a busy professional so I have limited spare time. I have responded to then usually with something to the effect of “please complete the prequalification application and then we can schedule a viewing.” With this i have not had responses back. The app I use for prequalification is rent redi. I dont enjoy that it makes them sign up for a rent redi account etc. but I am not sure what other options to try. How would a more seasoned duplex owner go about getting a good tenant?

Steve K. · Answer

In order to avoid wasting time on a bunch of individual showings with unqualified applicants, perhaps consider doing what I do and host “open house” style showing windows. First of all I put my acceptance criteria clearly in the ad: minimum credit score (enter X amount, 620 is what I use),income 2-3x rent, good rental history, references, no evictions, acceptance dependent upon background check and employment verification, pet policy, desired lease term, etc. so that people will hopefully read that and not come to the open house if they know they won’t qualify. Then I line up about 10-20 applicants to see the property during a 2 hour time window on a Saturday or Sunday. This way I don’t have to schedule with 10-20 individuals, especially because a high percentage of people who say they are coming are no-shows. I have paper applications at the open house so anyone interested can fill it out right there or I offer to email them the electronic version. I don’t take application fees until I have reviewed an application and proceed to step 2, the background check. I can interview prospective tenants a bit at the open house too, informally. This works well for me but one thing to note about this process is you absolutely need to know your local and state laws very well so that you don’t break any rules or run the risk of being accused of discrimination, because you will be turning people down and should have a legit, legal reason not just that you don’t like them. For example I use the same set of criteria for everyone and accept the first qualified applicant who completes the entire application process. I’m very clear about that with everyone up front and my reason for turning someone down is almost always that they don’t meet my acceptance criteria or that someone else who met my acceptance criteria completed the entire application process first. I mark the applications down as they come in to keep track of the order in which people applied, and they have to follow up with employment verification, background check, references as well so I can tell who is the most qualified and serious applicant pretty easily. As an owner-occupant living in one unit in a multi-fam, you will have more leeway in who you can and can’t accept according to the law, but it’s always important to be aware of the rules to make sure you stay in compliance because you want to avoid having to defend yourself from an accusation. You still need to avoid doing anything that makes it seem like you’re being discriminatory especially against protected classes. Treat everyone fairly and follow the rules and you’ll be okay. Besides needing to be extra careful about the above, this process works well for me and I usually find a great tenant during the first open house. Occasionally I have had to host a second open house but still better than a bunch of individual showings IMO. My application process is very thorough but I find most people don’t want to fill out an application until they see the place and know if it will work for them. Putting the acceptance criteria prominently in the ad will prevent most of the non-qualified people from coming to the open house or applying. In my initial communication I make sure that they have read the entire ad including the acceptance criteria. Good luck!

Adam Bartomeo · Answer

It sounds like you are VERY new to all of this. I would also suggest getting a PM to handle this. At least until you have done your due diligence to understand the steps of being a landlord.

Of course they want the address...

They always want to see the property before being "prequalified"...

There is salesmanship involved with finding a good tenant. I am afraid that it will be a long journey for you unless you get educated very quickly.

Stuart Udis · Answer

@Antonio F. Why aren't you sharing the property address? Of course very few qualified tenants will contact you and those who do, will move on rather quickly. Would you share your personal information when the landlord won't even reveal the address? I don't believe any sensible person would.   They will think you are running a tenant screening/tenant application fee collection scam.

Nicholas L. · Answer

@Antonio Funches

hire a PM and let them handle it

good luck

Andrew Syrios · Answer

You need to be careful with prequalifying people these days as various cities and states have laws that can restrict that. I know, for one, you should never tell someone not to apply. Just say something like "people with evictions on their record would not be accepted."

But I think asking someone to fill out a prequalification application is too much. Most will just decline and move on to the next property as they don't want to fill out something for a property they haven't even seen. I would just ask the questions verbally to make sure it will work.

Stuart Udis · Answer

@Antonio F. If you are concerned with the types  of prospective tenants  who may do a drive by to check out the place as a first step of their apartment search you have a real estate problem my friend,  not a leasing issue. Perhaps not the place to live alongside your tenants either…

Rick Albert · Answer

I do open houses. If I were a tenant I wouldn't spend the time applying if I don't like the place. Yes, you are busy, but they can be as well. Everyone's time is valuable.

I do group showings to save me time, give the impression that the place is super desirable (because everyone is there) and you eliminate the risk of no shows since you would be there anyways.

Taylor Cave · Answer

Very tough to do. Made this mistake when I lived in the top unit years ago and looked to rent the bottom. Had 4 people randomly knock within the first 3 days.

That being said, one of the walk ups ended up being a great tenant for another property I had, so definitely not all bad assuming it’s in a decent neighborhood. Take the good with the bad I guess. Test out a tour fee or small application w no credit pull. I also due to all the walk-ins put a sign with cards by the front door with my number that way I could kind of verbally take an application when they called.

Andrew Freed · Answer

@Antonio F. - Agreed, sounds like you don't have the time to properly vet candidates. I recommend hiring either a PM or even a listing agent who you pay a half a month to a month of rent to get the unit rented.

Just so you are aware, these tenants are your customers hence if you make the application process challenging and tedious at the very forefront of the process, most people don't got time for that. Look at you with your busy life lol. In the future, if you're a landlord, remember that these are your customers and try to approach your business from that perspective.

Antonio F. · Answer

Thanks I am new. I have plenty of pictures up but was nervous about putting the exact address and having people just show up on my doorstep when I’m not home. I’ll look into the PM option. Thanks

Duplex owner occupied, how to get Good tenants?

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