Closing the deal on application submittals?

Question

Alright, all. I know there isn't a straight forward answer but would love to get your take on how you follow up and get people to turn in applications.

I am just missing that last 5% of the deal in getting them to return the application. In sales it is about closing the deal as fast as possible, when the client is still excited about the item or property. This would be when they are still with me or the same day. Do any of you have them fill out applications right there on site? How about an online format? How do you keep them from losing that excitement and moving on to the next (shiny object syndrome). I am old fashioned where I just have paper applications sitting there and they take them with when they leave if they are interested. They then have to return them to me with the  $35 app fee.

I know there isn't a straight answer and it can depend on location, amenities, price, etc. with what I am offering versus what the next place has. I get that completely but what strategies do you use to try to close these gaps, keep your property fresh in their memory?

I am in outside sales by day (not in real estate). I even utilize a "sales funnel" for my rental properties when they become vacant. I know some of it is just luck and immediately finding the right person.

James Wise · Answer

The serious ones turn it in.

Bryan N. · Answer

@Jedd Braunwarth

If they are serious and will qualify the application will come to you usually within 24hrs.  I don't ever push for them to return an application.  If I pressure or sell them to do so, it would probably waste my time running it anyway.  The serious and qualified people will respond with the app and all required paperwork in a timely manner (I require it all be turned in at the same time).  I offer the app fee to be applied to first months rent "if approved".

Jedd Braunwarth · Answer

Bryan N. than later for the response.  I like how you will apply the app fee to first months rent. That is an excellent incentive. I will try this. I agree with the fact that serious people will turn in the app however it is common that if a person likes two products they will choose the last one they looked at. This is primarily the angle I am looking to improve. If they are looking at 5 potential properties and say mine is the 3rd one they look at how do you keep them excited about that one after the next two and come back? Or better, how to incentivize them into  stopping at mine and look no further.

I am not saying all of this as a used car salesmen type trick  and get anyone and everyone. I am just in sales and enjoy figuring different angles to improve. I think all property owners would enjoy having more  people to choose from than only 1 or 2 who applied.

Bryan N. · Answer

I agree with Ursula B.

I don't want a bunch of apps.  I want a couple who will pass all my criteria.  So, by having clear qualification rules up front it saves me a lot of headaches.  As far as picking my place, they will or they won't.  Either way, someone else will come along in a relatively short amount of time.

Ursula B. · Answer

If you want a competitive advantage find out what your competitors are doing and do something different. I do 3 things differently than my counterparts in my area and they pay off every time, but I believe in quality over quantity. I give full disclosure so usually the folks that make it to a completed application are quality tenants. All about  efficiency so I'd rather have two great applications than  have to sort thru 20 applications to find those two great applications. Saves time upfront and on the back end.

Ursula B. · Answer

@Jedd Braunwarth   Right now we take faxed and emailed applications.  They have to include check stubs and copies of their ID so it's easier to have them either fax them or email them back to us.  I do not follow up unless they submitted the paper application on the spot and I'm waiting for the rest of the documentation.  We do not process incomplete packages, so I'll make a phone call at the 24-36 hour point and follow up with an email to remind them of the deadline and that only completed applications will be processed at that point.  That usually gets them moving on the documentation if they are really interested.

To save time and money since we don't require an application fee, we tell everyone upfront that we require credit/background/criminal checks security deposit and first month's rent in certified funds before lease signing.  We are also upfront about our automatic disqualifiers.  So if we get a complete application with all required documentation (check stubs, ID, etc.) then we know they are serious applicants.  We deny incomplete applications and those that disclose automatic disqualfiers first, so there's no cost associated with those apps.  We then process the rest one at a time in order received, and the first approved applicant has 3 days to produce the certified funds and sign the lease.

We have not had anyone that we accepted turn it down.  Since we are very upfront about our requirements and the process, usually someone that takes the time to turn in a completed application by the deadline is a serious applicant and can meet our criteria.

Ursula B. · Answer

@Jedd Braunwarth    We make sure our homes are in pristine condition.  They look good and smell good.  We stage the kitchen and baths because that's what sells homes.  I point out any updates to the home (new carpet, fresh paint, new appliances, etc.).  We look up comps and stay $10-$20 below (we make it up at renewal).  I tell all prospective tenants that we've had a lot of interest in the property (always true) and give them a cutoff date for returning applications if they want to be considered in the first round.  Also, we don't charge an application fee - we see it as the cost of doing business since we typically rent within the first two weeks - and we always get multiple applications within a couple of days of the open house.

I also give everyone an application with a cover sheet that has instructions for how to submit a complete application package. They also get a flyer with pics so that they remember our home.

Good luck to you!

Closing the deal on application submittals?

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