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Updated almost 10 years ago, 02/16/2015
Which prospective tenant gets my house?
I am showing one of my homes to 3 separate applicants. I have reason to believe that all 3 of them are going to pass credit and background checks. I do not know who contacted me first as they contacted me on the same day via different means. Therefore, I can not simply tell one applicant that he or she gets the first opportunity. Also, I'm not sure what to say to the 2 applicants that I have to decline. How would you handle this situation? Thanks.
I would make sure that you have created a written policy and get it to them before you make your next move. If you are called in front of a hearing for violating a fair housing or discrimition law you can say that you let them know your policy and you followed it.
Also make sure just as importnant you send the ones you turn down a denial letter. Remember it's not the person to accept that gets pissed and turns you in. It's the ones you deny that will get you in serious legal trouble.
You are under no obligation to accept applicants on a first come, first accepted basis. That seems to be a common myth in landlording.
We have set up a set of criteria for how we determine the "most qualified" applicant, and then accept that one. Just as a basic idea, we have some initial deal breakers (no past evictions, income of minimum 3x rent, max number of occupants, minimum credit score, no pet dogs, etc.). If we were to have multiple apps that met this basic criteria, then we assess which one is better and pick one. You have to decide what your assessment will be based on: the one with the highest income, the one with the best credit score, etc. It obviously needs to be something non-discriminatory. You couldn't, for example, pick one app because it has fewer proposed occupants than another app, as that could be argued to be discriminatory against families.
Good luck picking an app. If that's the worst "problem" you have, you'll be just fine. :)
@Ken Gurta you need a policy. Then you give the place to the first qualified applicant. Just be sure you tell them this ahead of time, so they know there may be someone else that is ahead of them. First app turned in with all required fees/deposits gets processed first. If they pass they get it, if not, next app gets processed.
@Ken Gurta ..Wait until you get into verification. Most tenants don't disclose all info upfront...Stability weighs heavily...good luck!
In your OP, you said you are showing to "applicants" - they aren't applicants until they have completed and given to you some sort of paperwork (AKA an application); until then, they are at best prospects, and usually they are just suspects :)
Most won't put in an application until after the showing ...
After being burned more often than I would like to "acknowledge" we have a simple policy. First person who is "qualified, ie meeting all of it requirements" sign the lease and give us the deposit gets the house! I have had someone lose the house who had been "workkng on it" to another person who did it all in 3 hours! I find those who dautle are not interested and those who wants it will get it done!
Thanks Steve. I have never sent out a denial letter before, but will do so this time. I hate disappointing anyone.
Same as Elizabeth for me. 1st to qualify, sign lease, pay first months, and security deposit wins. The serious ones will execute all that in the same day or less.
I have a very clear set of written criteria that all applicants must meet for the application to be processed. These criteria are included on each application I hand out. In my market, Greenville and Greer South Carolina, there are a lot of tenants competing for properties. I process the application from the first applicate to meet these criteria, fully complete the application and pay the fee. I include a date and time with signatures which is my record for which order to follow. I explain this process up front and have never had a complaint.
Law or no law, for me this seems the most fair way to operate. Determining "the best" tenant seems like a gray area that we choose to avoid. Hopefully, if we are ever hit with a discrimination suit, a judge would agree.
Thanks everyone for all of the advice. I have been burned in the past. This will be my first time using the BPSM background and credit checks. I'm looking forward to it! I will give an update tomorrow. All 3 are claiming to have the upfront money now. I guess it's going to be a race.
Play rock paper scissors with all them. Winner moves in.
Frank
I suggest reading this next thread and the links in it too:
Same as @Elizabeth Colegrove . We make decisions on applications as we receive them, and tell anyone approved that the first person to pay the security deposit and first month's rent gets it. We don't write up the lease or stop marketing the property until security deposit and first month's rent is in hand, in certified funds. Those that do not meet our criteria receive a prompt denial letter via email and US mail.