picking among qualified tenants without legal liability?

Question

I am planning an open house and expect a number of qualified applicants, there was lots of interest (apparently the rent is STILL too low!). My question is that if I take a number of applications from qualified tenants, am I under any obligations, chronological or whatever, or can I simply pick the one I think will be the best fit? I just don't want anyone saying something like "my credit and income are perfect, you've discriminated against me!!"

Usually I show by appointment, and prioritize by first application, or at least pretend to, so I can say, "sorry, we just need to run the credit for someone who wants it, if they don't work out I'll call you."

Usually I show by appointment, and prioritize by first application, or at least pretend to, so I can say, "sorry, we just need to run the credit for someone who wants it, if they don't work out I'll call you."

Jon Holdman · Answer

I evaluate applications in chronological order.  The first qualified candidate is offered the property.  If that candidate accepts and either signs a lease (with one months rent and full deposit all in cash in exchange for the keys) or signs a deposit to hold (with a non-refundable deposit, only done with a short time until lease signing) they get it.  If not, or the they're wanting to move in later, I would work down the list of applications.

Michael Beinetti · Answer

I've done "opens" for some of my very popular rental units and would take into account chronological order of applicants. If there were multiple applicants on even ground the decision basis turned to a "first come, first served" scenario. I have never had an issue with it, even when I call the declined applicants to share the sad news.

I am not aware of legal implications with this, but would recommend consulting an attorney in your area for actual evidence of any legal obligation on your part.

Kathleen Wilcox · Answer

We hold open houses a couple of times each week until we have a signed lease.  We process all applications in real time.  The first applicant to make it through process successfully is offered the unit.  When we get to the point where an applicant meets our criteria and we have made an appointment to make an offer of tenancy, we inform every person that inquires about our vacancy that we have an applicant that meets the criteria for tenancy but we haven't made the offer yet.  That way they can decide whether or not to make application.

Johann Jells · Answer

We just had our open house, the first viewers were a lovely personable couple of the type we love as tenants, at the bottom of their app they offered $120 more than the $1370 asking!!  It does push them income wise, they stated $70k, but he's a freelancer just emigrated from Britain and he said $20k, she's a HS teacher making $50k. Since it doesn't take much work at all in high expense/wage NYC to make $20k (I have 30 years experience as a freelancer), I have to assume he's lowballing what he thinks he can make to play it safe. Since I like them aside from the sweetened offer, I think I need to have a chat after the credit check. I have no idea what, if anything, that will turn up on a Brit.

The 2nd couple were just as nice, but didn't sweeten it!

Justin Case · Answer

@Carl  Gipson many prospective tenants are flaky in Seattle. I find this at all income levels They are always looking for something better and/or afraid they will lose out so they find something else.

Get the money in hand from the qualified tenant asap.

Michele Fischer · Answer

On my state we do not have to process applications first come first serve, we can grade them all and take the best.  States may differ though.

I use a point system to grade against my criteria.  Low points disqualify, medium points puts them in a holding pattern to keep digging and verifying and see if someone better comes along, high points gets an offer.  So in your case I would do an initial grade all of the applications, start with the highest score, do more verification, and either deny, offer, or go to the next one, down the line by initial score.  Applicants gain and lose points as we research, call, and ask clarifying questions.

We never stop marketing a property until we have a signed agreement, but we do lose enthusiasm once we have a few seemingly viable applications.  We will often say that it is likely rented, but can we call them back if something falls through, and start a waiting list.  The important thing is to be consistent so it doesn't look like you are being preferential or discriminatory.

Matthew Paul · Answer

No 2 applicants are the same , there will never be a "tie" between applicants , one will always be the best , based on your criteria. it may be 1 point higher on credit score, or 10 dollar more on annual income .  If you do have a "tie" on qualifications , there is a very simple way to decide ..........flip a coin.

Carl Gipson · Answer

I had a similar experience this weekend (Seattle). Several qualified applications (at first glance anyway) and still people are blowing up my email and voicemail. I am planning on screening the first batch that came in from the initial open house and will offer to the best verified candidates and in the event of a tie, go down the list in order received. I'm still considering holding a second open house to get more applications just in case... anyone do more than one open house if you already have applications in hand? Just nervous about losing them before the screening process is completed.

Andrew Syrios · Answer

When everyone is qualified we just do it on a first come first serve basis. Whoever gets their deposit in first wins. We then try to pass off any of the other applicants to other rentals we have if it fits their criteria.

picking among qualified tenants without legal liability?

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