Selecting between 2 applicants

[Jeff B.]

Received 2 applications for tenants today for one of my houses.  The first applicant seems to barely meet my requirements (primarily income requirements) and the second meets and exceeds the requirements by a significant amount.  I have a feeling the first applicant will end up being a one year and out tenant and the second has already stated they would likely be 3+ years. 

I would very much prefer to offer the lease to the 2nd applicant, but not sure how I would go about denying the 1st since they meet my minimum requirements (though it is by the slimmest of margins).    What options do I have when I run into this situation?

[Matt Devincenzo]

You are legally allowed to "rank" tenants based upon their info. I know some say to avoid discrimination claims the first to apply is the one you accept. You can also avoid discrimination claims by choosing the best by objectively ranking them based upon your approval criteria. As long as you "grade" them all the same way then you've applied your criteria indiscriminately. (I'd say income level should be fairly high on your ranking)

When I have multiple applicants I first "rank" them based on the paper app info they've given and "fit for the property" (IMO your desire to stay 3+ years vs 1 is a better fit for my property) which doesn't cost me or them anything but 15-20 minutes.  I process the highest ranked and the tenant pays the application fee online. Should they pass I allow them first stab at the property.

If they are ready to pay a holding deposit/security I call the other back and let them know they're in holding until I know if the first is actually going to come through. I'll only wait about 24 hrs before I start processing the second and letting the first know that I'm proceeding to the next applicant. Both know that during that time it's whoever comes through with the money first that gets the property.

The longest I waited on an approved applicant was 4 days, only because she was out of state and mailed me a check. I was willing to wait because she sent 1st/last/ 1 month SD to hold it until she moved in 10 days later.

So your situation tenant 2 gets more points in income/length of stay and the other barely squeaks by....