What is the next move?

Question

Newbie question here need some help. Over the last two weeks I have shown my rental to 6 different groups of people and have gotten 3 different applicants. I understand the guidelines to screening like having gross monthly income 3 times rent, check their car etc

A lot of the people I have been getting applications from may excel in one criteria but be terrible in another. For example I have one applicant that has income that is vastly exceeding the monthly requirement but their car looked gross, they were 300 lbs, and smoke.

Another applicant barely over the monthly income required and had less than stellar credit. Otherwise they had an immaculately clean car and were more curteous.

I guess my question where do I go for here? Should I hold off for a better tenant? How much weight does each criteria get in your book? I guess theres no such thing as a perfect tenant but where do you draw the line. These people are expecting an answer back so I want to be able to make a decision soon either yay or nay.

Bill S. · Answer

@Joseph Weisenbloom I tell people I will contact them when they are approved. If they don't hear from me they know they didn't get it. When they call I tell them we rented the place. If they ask why, I tell them they can send a request in writing along with a stamped self addressed envelope. If you feel the need to contact them, then tell them it's been rented. If it hasn't been rented, tell them you weren't able to approve their application. If they want to know why, again the stamped self addressed envelope route. Some people put all applications as pending and have criteria that must be "addressed" to get approved. Something like below 3x income then provide additional deposit. Bad landlord reference need extra deposit. Strategies vary because in some places the amount of security deposits is fixed. You have to ask around to local landlords.

Marcia Maynard · Answer

Go with the one that has the best rental history. They have sufficient income to meet your minimum criteria to rent. Having more income is not necessarily better. Tenants who have more money have more options and often will move for better amenities or to buy their own place. You want someone who not only has the ability to afford the rent and utilities, but also will take good care of the place. Look for a renter who will most likely follow the terms of the rental agreement, including your property rules. Beware of people who tend to be "rule breakers", look for signs. Although glancing at the car is a good idea, it doesn't tell the whole story. If you can see where they are presently living, it will give you a better idea of how they will take care of your place. Talk to all previous landlords, not just the most recent. Avoid smokers.... they are not a protected class and can do a lot of damage to your property. Not to mention the health risks involved with second hand smoke. Unless you specifically want to rent to smokers (niche market), establish a no-smoking policy and stick to it. Advertise the unit as non-smoking and it will attract more interest, as most renters prefer to live in smoke-free premises. Obese people may qualify as having a disability, so tread lightly there. That said, unless your property can handle the excess weight, you need to consider the reality that an obese person can unintentionally cause more wear and tear and damage to a property. Heavy people can be especially hard on toilets. If you do rent to a very heavy person, try the chair height toilets instead of the old standard low ones, as it will be easier for them to sit down and rise from. If a heavy person tends to plop down on a toilet, the toilet is likely to unseat from the flooring, resulting in water damage and the need for flooring repair. As with anyone with a qualified disability, be open to allowing modifications to your property to accommodate their needs. If you don't have it already, establish written rental criteria that you apply equally to all applicants. When you deny an applicant, be sure to have a valid and legal reason for doing so. Follow the landlord-tenant laws in your jurisdiction for how to proceed with the denial, it can vary from state to state. Good luck!

Ellis San Jose · Answer

How long did they stay at their last residence & why did they move?

Joseph Weisenbloom · Answer

@Bill S. Good advice! I have stopped taking applications and received a 4th one today. I think I have made my decision on who I am going to choose. The guy I am choosing isn't spectacular in any one criteria but he is consistent in all areas. He makes enough money, was courteous, clean, dosen't smoke, and was early to our showing. I just need to run a background/credit check on him and pending that he should be good to go. Any advice on rejecting applicants so I don't get into trouble? The other 3 applicants were nice folks and met the income criteria but may not be a good choice because they smoke/300 Lbs/have a dirty car/dont have any rental history etc. Im trying to tread lightly on the being obese thing because I am learning that is supposedly a protected class.

Bill S. · Answer

@Joseph Weisenbloom the process is this. You write down your criteria. You take applications. The first application is processed as soon as it's received and screened against your written criteria. If they pass you rent to them. I know that's over simplifying but any other process creates lots of fodder for illegal discrimination claims. I know you are unsure about your criteria but if they don't qualify, they don't qualify. Now if you get several applications the same day or fairly close together (12 hrs) and they all would pass you obviously have some options but technically, first come first served. This is to protect yourself and make it easy for your lawyer to defend you. Do not hold applications for a week. You will end up missing good tenants. At the same time your are processing application, keep advertising and showing until you have a signed lease with money in hand. If you think your criteria is too strong or you see something that needs to be added to your criteria then modify it and keep records of that but don't waiver back and forth. Also if you have more than one property you can have different criteria for the different properties. They should be written down.

Joseph Weisenbloom · Answer

@Marcia Maynard Great advice! I am reconsidering my criteria to accepting the guy with a long rent history but makes less money. I have yet to look at these tenants current properties which is something I need to do. I was not aware the obese was a protected class. Wow! I figured if they are in the situation where they cant handle their weight how hare they going to handle my house. @Jean Bolger I am afraid to ask you about the toilets haha. It looks like these people were in there previous apartment for 5 years so they may be a keeper. @Nicole W. I have verified the income but have not looked at their current property which is the next step I need to take.

Nicole A. · Answer

Have you verified the income by seeing a paystub or something or is that just what they put on their application?

Jean Bolger · Answer

Non-smoker over smokers, every time. Marcia is right- a no-smoking policy will save you tons of $ in the long run. (She's right about the toilet too, unfortunately..... ask me how I know. lol) Someone who has already stayed put in an apartment for 5-6 years could be a real find- maybe they'll stay at your place that long.

Joseph Weisenbloom · Answer

@Ellis San Jose The one that makes the most money has been with their previous landlord since 9/1/12. The one that makes the second most amount of money lived in their sisters house prior to applying and dosen't have any tenant experience(that I know of) The one that makes the least amount of money has been with their landlord since 2007. Its tough to tell who is the best applicant because the one with the longest time spent at their previous apartment also makes the least amount of money. With that being said they all pass the monthly income 3 times monthly rent requirement