When to approve tenants?

Question

Hi all, first time landlord here and I had a quick question on the approval process for potential tenants. I have my property up on Zillow and have had quite a few applications. I have been waiting until I meet them and let them tour the property before I consider approving them, but I had one really good applicant get away because she told me she was approved elsewhere. Should I be approving really good applicants and then tour/meet them before making a final decision to rent to them? In other words, is “approving” their application a commitment to rent to them, or just to allow them to move forward in the process? Thank you!

Dominic Mazzarella · Answer

It’s a balance. Approving an application typically means the tenant meets your criteria and is a good fit, but it doesn’t have to be a final commitment to rent. You can let applicants know they’ve passed the screening and move forward with showing them the property, making it clear that the lease is only finalized after the viewing. This helps keep strong applicants in the pipeline while still giving you a chance to meet them before making a final decision. Communicating timelines and expectations upfront can help prevent losing good prospects to other properties.

I'd say it's a potential red flag if they want to sign the lease without viewing it. I know people catch a lot of scammers this way. That being said, I've definitely signed leases for properties that were on the other side of the country and I didn't get a chance to physically see them before signing the lease.

Vince Scipione · Answer

I have never approved a tenant without meeting them, if everything looks good on paper, income, accounts, backgrounds. I would expedite the showing. Leave the less desirable ones as a backup to contact if this prospect does not work out. Hope this helps!

Nathan Gesner · Answer

I get a lot of applications from out-of-area people, typically moving from another state. They want to secure housing before they arrive. I highly encourage everyone to view the property before putting money down, but that's not ideal for many of them, so I do allow them to rent "sight unseen," but I am very open with them to ensure they don't show up and back out.

1. I try sending a video or doing a live video walk-through with them so they can get a better idea of the layout, condition, neighborhood, etc.

2. I warn them that a cancellation - for any reason - will result in charges. I say this verbally before they apply. It is written in my application instructions. When they are approved, I will tell them again in their approval email and verbally. When they sign the lease, it is one of the five key points highlighted on the first page that they have to initial. There's no excuse.

I've had renters pick up the keys, then call me 30 minutes later to say the bedrooms are smaller than they expected. Others have decided not to move at all. I don't care what the reason is; once they put the deposit down, they are under contract. If they change their mind, I put the property back on the market and look for a new tenant. The canceling tenant remains responsible for rent, utilities, and other charges until a replacement takes over.

Jorge Caceres · Answer

When choosing tenants (I am in California), it's important to avoid even the appearance of discrimination, especially during in-person meetings. Set clear and consistent application requirements so you can base your decisions on solid facts. For example, require a minimum FICO score of XXX, gross monthly income X times the rent, and verifiable income for the last X years. This way, when you meet with applicants, you can explain if they don't meet the minimum requirements, and if they do, you can then consider their application further.

Ericka Parrott · Answer

Zillow makes mistakes.  Have a way to double checking their information they give you on the application.  And always check social media for red flags and I agree with Vince, always meet a person.

Rick Albert · Answer

Yea I would definitely show before receiving applications. I know some might disagree.

The challenge is if someone applies and meets all your criteria and you reject them, I would hate for you to end up in some legal hot water. The work around is part of the application process is to tour the property, but still, why put yourself in that position?

If you have a ton of activity, then host an open house, get people through and then let them apply.

Adrian Lammersdorf-Scioll · Answer

You definitely want to use a thorough screening method like rentprep.com that gets their income, credit, background check, and call at least 3 references (make sure to verify them by address/job and then their name).  Income should be at least 3 times as well, otherwise they'll most likely move out when you up the rent (I made this mistake once).

When to approve tenants?

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