Overwhelmed with applicants

[Mark Werner]

Hello all. I am curious to know from the long time, experienced landlords, how do you approach a situation with numerous applicants or potential applicants? I am new and still learning, and especially learning a lot from the good people t this website. I initially listed my first rental and was overwhelmed with potential applicants. Unfortunately I selected one that I believed would be a good choice (prior to getting application or deposit) and removed my ad. That potential tenant turned out to be a not so good choice. Some of you may have read my forum on that.

Now, I have the same problem again. Do you let them all complete an application and collect application fee and deposit from all of them, then do your background and credit checks, and then select your best candidate based on everything? Or do you screen one potential candidate at a time?

I don't know. I just find myself feeling kind of guilty collecting application fee and then having to tell people they were not selected, then they are out the $30. Or am I being over sensitive? Do potential tenants know and expect they might be out the application fee (I know it say's right on my application "non-refundable")? Or do the applicants who are not accepted get upset wanting their application fee back?

I am just wondering how the screening process is approached by those of you who are experienced in ding this. I know it is a good problem that I have and I wish I had about 3 or 4 more of these townhouses.

Thank you very much!

Mark

[Steve Babiak]

You are too low on asking rent if you are being overwhelmed with applications. 

If you don't have some ridiculously stringent rental criteria, you should probably avoid the "beauty pageant" approach (of picking the one that looks nicest), and instead you should pick the first in time to qualify. Ridiculously stringent criteria are so crazy that nobody meets the minimum qualification, thus you pick the one that comes closest - but if there should be an applicant that does qualify then you accept that applicant. 

Even in selecting the first to qualify, you can take multiple applications explaining that the applications are in a backup position to others received ahead of them (and make sure you have a way of tracking the order to the applications like marking date and time submitted); if somebody ahead of them qualifies and pays upfront money (rent and security deposit) in full and signs a lease, then you return application fees for any unprocessed applications. 

One other consideration you can use is the move in date; those with a later move in date will be placed behind earlier move in dates.