Showing a house and collecting applications.

General Landlording & Rental Properties
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Showing a house and collecting applications.

Justin Fox
Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes

Right now I'll send a interested person our criteria and set up a date/time to view the property.  After the viewing I'll typically get their email (if I don't already have it) and send them an application (PDF).  Hasn't happened yet, but I plan on meeting up with them once it was filled out by hand and collect the app(s) and processing fee(s) and supporting documentation (or if they can scan them).  I will try to get results of their screening within a week or so.

I would just like to know what other people do.  Should I just send them the criteria and application?  It's seems like people don't even read the criteria for some reason.  They'll show up and start telling me about their bad credit and how it's their ex's fault and etc.  Or that they're middle aged and haven't had a utility in their name for the past 5 years.  One guy didn't have an app filled out but gave me the 25 bucks and said he'll get the app to me later.  I haven't had it on the market but 6 days and have shown it 6 times and there are some quality people interested, but it's getting frustrating.

If someone came to look at your property and tells you things that make them a no-go on 50%+ of the criteria, do you tell them right then that they won't make the cut?  Or do you just tell them to fill out an application if they feel they meet the criteria?

Thanks for any help,

Justin

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Justin Fraser
Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
10y

I started using cozy.co for my application process. They can fill out the application online, and pay for the background check directly through the website, so you never have to collect any money from them.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    Do an open house. It is a waste of your time to take them personally one at a time. Hand out applications as they are leaving and instruct them on how to return the completed applications. Do not accept any money or make any commitments until you have completed applications in hand.

    Then screen by order of most qualified based on the applications received. Accept all applications and tell the applicants nothing until you have chosen a winner. When you choose a winner do a thorough personal interview before informing them they have been accepted. If they fail the interview you will need to start screening the next most qualified applicant. If they pass you read through the lease agreement with them line by line. This way they can never say they did not know the rules.

    It does not matter how unqualified a applicant may be you take their application say thank you and throw it in the garbage.

    All above dependant on your specific state landlord tenant regulations 

    1Reply
  • Justin Fox
    OP
    Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
    10y

    @Thomas S.

    So when you advertise for an available unit, do you only advertise for the open house?  How many open houses do you host typically?

    Thanks!

    0Reply
  • Beth L.
    Investor · Hagerstown, MD · Member since 2014 · 299 posts · 140 votes
    10y

    @Justin Fox, I agree with @Thomas S.. However, I like to ask the "interview" questions up front, either in an email or over the phone. This helps me to determine if they meet the criteria before I even waste my time in showing them the unit. For example, I specify required income, no pets policy, etc. in the ad, but inevitably, people still ask to see the unit even though they know they don't qualify, or they just didn't read the ad. I can find out up front that they have pets or not enough income and tell them that they don't qualify.

    This pre-screening should still work if you are holding an open house, if you are in contact with them beforehand. You can also talk with them as you show them around at the open house. Take good notes, and if they hand in an application, you have some details to go with it.

    Best wishes on getting it rented!

    1Reply
  • Justin Fraser
    Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    10y

    I started using cozy.co for my application process. They can fill out the application online, and pay for the background check directly through the website, so you never have to collect any money from them.

    2Reply
  • Justin Fox
    OP
    Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
    10y

    Thanks for the info @Justin Fraser, @Beth L. and @Thomas S.

    I just had a company call that is going to have a work contract in my area for the next 5 years and is interested in the house!

    Have any of you ever dealt with a company before? It's an LLC. So would I just request the financials of the owner? Would I get a app for the company and each worker that is going to live in the home? I've noticed that business credit reports can be substantially more expensive as well.

    If I do a multi-year lease, should I include an annual % increase in rent or would an early termination clause be good enough?

    Thanks again!

    0Reply
  • Justin Fraser
    Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    10y

    I haven't dealt with a lease to a company - is the company going to be operating the business out of your property, or is this a scenario where one of their members be living there? I'd expect you would want to screen the tenant who will be living there, rather than the company. You may want to screen the company as well, but I would want to know who is living in my house I require a credit and background check of all residents over 18 who will be living in the property.

    Also, if you are going to do a 5 year lease, I'd build in a rent % increase. Make sure you check to see if your area is rent controlled, so you don't exceed that amount.

    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    I do not place the open house info in the add I provide that information when interested parties respond to the add. I also collect some preliminary info at that time and answer questions.

    You do need to take some info at the open house so you can associate the individuals with their application.

    The plus to this is by them having to take a application, fill it out and return it the vast majority simply throw them away saving you a lot of time in screening. Make it too easy and you get a load of unqualified applicants.

    When you take on a new tenant, business or otherwise, make the initial lease as short as possible. If they don't work out you want to be able to get rid of them as easily as possible. You want flexibility. A long lease does not protect the landlord it protects the tenant. A tenant can still walk anytime they choose.

    0Reply
  • Justin Fox
    OP
    Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
    10y

    @Justin Fraser

    Three of the employees will be staying there, two managers and an employee.  @Thomas S. they said they are interested in a year-to-year lease.  So that's good.  I'm going to require enough app fees to cover standard-plus background/credit checks for each employee and the owner.

    I'm going to require them to all be on the lease as well.  So they are all contractually agreeing to the terms and rules.

    This site is great,

    Justin

    0Reply
  • Justin R.
    Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
    10y
    Justin Fox We advertise the same unit with a link to an online interest form and our email / cell (for txt) for questions. Everything is about driving them to the interest form. We promise that if they fill out the form (and qualify based on the questions there), we'll invite them to the open house. In the open house invite, they get a sales pitch on the place and an electronic application to fill out. Usually, we'll get maybe 20 inquiries, 8 people fill out the interest form, and 6 show at the open house. Of those, probably 2 already filled out the app and pay the app fee by Venmo/PayPal/Credit Card/Cash at the open house. That night, pick the best applicant, due diligence on them, then offer it to them the next day or two. Note: At the moment, our market is unbalanced in favor of landlords. And, on your other question, I have three units rented to corporations for their employees to use. Has been AWESOME for me and the leases are in the corporate name and feel very much like commercial leases with yearly increases and terms similar to NNN.
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