Screen applicants based on move in date?

Question

I know it's a liability to accept more then one applicant at a time but the first applicant we agreed at a lower rent and a Nov 1 move in. Now she says she wants a mid to late November move in. No lease has been signed or deposit taken. I have another prospect who will pay full rent plus be moved in by Nov 1. Do I open myself up to any lawsuit by taking in the additional applicant?

Can I put her on the no. 2 spot and take other applicants without repercussions?

Angie W. · Answer

I wouldn't think so. My philosophy is the first approved person to put money in my hand and sign the lease is the one who gets to rent.

I take and screen applications until someone signs a lease and pays all deposits and first months rent. Until that happens I feel I am not obligated to anyone.

Did you agree to a Nov. 1st move in date as a condition of the lower rent for the first applicant?  Are both applicants equally qualified?

IMO until you get a commitment from any applicant (signed lease, deposit,rent) you are free to continue to market the property and screen potential tenants. Otherwise you're wasting time waiting on someone who may just walk away.

Bill S. · Answer

Terrible typo's my apologies.

Bill S. · Answer

These too down compute for me? Did you send them a lease which they haven't signed with the lower amount in it? Did they actually agree (verbally) to rent your place? Seems like if they are coming back to you and changing times then maybe they haven't agreed. My approach would be, sign the agreement and give me the money in 24 hours or I am going to move on to another applicant. Absolutely no reason to wait until move in to sign the lease and get funds. Just make sure that the Lease has the correct start date on it.

If she ask why tell her she changed her mind once and you don't want to risk her doing it again. If she won't sign move on.

Elizabeth Colegrove · Answer

@Stephen Dinh Do you have a contract and security deposit from the "changing" mind tenant? Did you agree to the lower price orally or that it was okay for her to change till mid Nov. From my understanding till money has changed hands and a lease is signed. No contract has concluded.

Are you sure "oral" contracts are binding? I have not heard of that before. That would bring on tons of he said she said issues.

Zach Schwarzmiller · Answer

I give tenants the criteria and application and tell them to give me a holding deposit of the security deposit (I don't deposit it), the holding deposit will hold their position for 24 hours (enough time to get me back the application + fee). If they fail to get it to me within 24 hours I move on to the next person. If they do get me the application within 24 hours I give them another 48 hours to pay first months rent (usually have the screening results within 2-12 hours). This is all written on my screening criteria so it's of no mistake to anyone along with dates, ect. If I move on to the next person or reject I tell them do you want me to send the check back to you or just shred it? And then I send out the rejection information.

Jon Holdman · Answer

When an applicant passes screening I tell them they have been approved.  But until we sign a lease and money and keys change hands, they're not yet my tenant.  If someone wanted the place on Nov 1 this late in the month, I would probably agree.  But, they have to pay and sign a lease, or give me a hold deposit, or else I continue to show the property and screen more applications.

If I had an applicant who was approved but hadn't signed a lease or given a hold deposit and then I had another approved applicant who was ready to move in tomorrow, I'd go back to the first accepted applicant and ask if they were ready to pay and move in.  In other words, I'd give them the right of first refusal for the earlier move in date.  If they decline, I'd give it to the second approved applicant.

With a week or maybe two before the planned move in date, I would ask for a hold deposit if they wanted me to take the property off the market.  I don't do this if there's more time than a couple of weeks because its likely I can get someone in quicker than that.  The hold deposit is equal to the security deposit.  Its non-refundable and I emphasize that.  The hold has a date.  If they sign a lease on or before that date, the hold deposit become their security deposit.  If not, I keep it and the property goes back on the market.

When we sign the lease they have to give me the full deposit and one full months rent in cash or money order.  I give them the keys.  If the property is vacant, I'll usually let a new tenant in a few days early.  Better to have someone there than the property vacant and it usually makes it easier for them.

Eric Knapp · Answer

Based on what you are saying, if the apartment is ready to rent Nov. 1, then take the tenant who is ready to move in on Nov. 1.  The first applicant agreed on Nov. 1.  She is backing out of that agreement, not you.

Jeff Bridges · Answer

@Stephen Dinh. You gave me a little chuckle! I didn't realize you had accepted via email to have a specific move in date for a specific price BEFORE you even saw their filled out application, let alone before accepting deposit, fees etc. You could have "reviewed" their application afterward and rejected it based on  info that didn't meet your specific criteria:) They could have been a convicted felon and you'd have no idea also before doing your background checks. It's much easier to say "I'm considering applications for XX move-in date, however I would consider your move-in date request when I review your application, however, I give priority to first person to provide a deposit and completed application for the earliest move-in date." Never be too desperate and cut corners with your tenant screening process, regardless of how long it sits vacant. good luck!

don't forget to reference this gem on tenant screening first:

http://www.biggerpockets.com/renewsblog/2013/01/27/tenant-screening/

Zach Schwarzmiller · Answer

Ah yes, I do this too, on an excel sheet ;)

Stephen D. · Answer

Advice heeded!  I like to work with email because it gives me a searchable history if I need to refer back to something and I have a ridiculously poor memory.

Screen applicants based on move in date?

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