Married tenants..joint application, separate, or just one spouse?

Question

Kevin Nalley · Answer

Marissa, you're welcome to copy the whole thing or in part... Keep in mind, I rent in lower income areas, not war zones, but a step above.

FRONT

Application Process

Thank you for considering Green Keys for your next home. We pride ourselves in providing clean safe homes at competitive rates. Our application process is simple and fair.

• Your gross monthly income must be approximately 3 times the monthly rent of the home you are applying for.
• A favorable credit history. We do expect perfect credit nor do we count medical bills, student loans, or paid collection debts. If you do not have good credit we can still work with you with a slightly higher deposit.
• Be employed for 6 months or more at your current job and able to furnish acceptable proof of income for you last two months of employment.Paycheck stubs are acceptable, "cash" or "under the table" money does not count.
• Good references from previous landlords. We use screening company to verify previous addresses, please list accurate information so we can speak to your previous landlord(s).
• Criminal History - No felonies, or sex offenses, drug trafficking, violent crime, terrorism, burglary, theft, arson, vandalism.
• Limit 2 occupants per bedroom.
• Each adult living in the home must complete a separate application.
• To make this application process as speedy as possible please mail / turn in the following with your application;
• A photocopy of your ID
• Proof of Income - SSI letter or last two paycheck stubs
• $35 application fee per adult on the lease.
• If you wish to place a hold on the property while we process your application, you may submit a $100 deposit. If your application is approved, your deposit will be used towards your first month's rent.If your application is denied, we will mail you a check for your deposit within 30 days.

If you are approved, you must be prepared to sign a lease within 3 days of acceptance or we will move on to the next applicant and you will lose your deposit.If your application is denied, we will return your deposit via check within 30 days. If you fall short of the above criteria we may able to work with you by doubling your deposit or paying rent up front.First month's rent and deposit must be paid by money order or certified bank check.You must have utilities in your name at time of move-in.

BACK (FAQ)

FAQ (Frequently Asked Questions)

Q. How much will it be to move in?
A. This depends on your rental history and/or credit history. If you have good references from your previous landlords and a reasonable credit history, the deposit is typically equal to one months rent. If you have no rental history and bad credit, it can be equal to two months rent. We do not expect perfect credit, and we do not count student loans or medical bills against you.

Q. I have X dollars on me and I need something today. A. All applicants go through an application process, we do not rent TODAY. The application process usually takes 2-3 business days to complete.

Q. Will you break up the deposit? A. No, deposit must be paid in full when we sign the lease.

Q. I have a felony charge for X that’s X years old… will you make an exception?
A. We have only made exceptions on very minor felony charges that have nothing to do with violence and drugs. Writing a bad check over $300 is a felony, we have made exceptions for minor things like this. We do a criminal background check on EVERYONE.

Q. Do you allow pets? A. No pets in our apartments, but we do allow small pets under 25lbs in some of our houses.  There  is a $250 non-refundable pet fee and $20 extra per month, per pet.

Q. I had an eviction X number of years ago, can I rent from you?
A. If you only had ONE eviction over 5 years old and you have a good rental history since then, we we may be able to work with you. If you have more than one we will NOT work with you. If you are moving to us because you are being evicted, we will NOT work with you.

Q. Do you do credit checks?
A. Yes, but we don’t expect perfect credit, we expect a reasonable credit history. We do not count student loans and medical bills. We are mainly interested in your rental history.

Q. What if I don’t have a rental history because I live with my sister, mom, brother, or other friend / family member.
A. If you have no credit and no verifiable rental history, you’re deposit will typically be double the monthly rent, if approved.

IMPORTANT - Inaccurate information on your application, such as leaving off previous addresses, is reason for an immediate denial. Please be accurate and thorough.

I'm constantly trying to make it better, but this covers the most basic questions I get frequently.  Formatting is off a little since I copied and pasted here...

Thomas S. · Answer

Yes separate applications to know how each stacks up when they separate. You need to know if either has bad credit because as a couple they become one. Bad habits on one will effect both. You also need to know if either has been evicted or has a criminal record. Again the past of one effects both when they are together. If one has a issue you reject both.

Rule number one there is no room for emotions in business. They are not people they are applicants. Ask any and all questions you want and if they get offended too bad. You are about to turn over possession of your property. You have no reason at this point to care what they think.

Fred Heller · Answer

I require a separate application and fee from each adult who will be living in the home. It' pretty standard these days.

Account Closed · Answer

@Marissa Mallamo No.  No need to reimburse the credit check.  And doing so might make you look too malleable lol.  You want to appear fair and pleasant to do business with, but never a pushover.  If they think you're too nice, they'll start asking for favors.

I understand exactly what you're going through as far as feeling empathy for your tenants.  I had to learn to think of myself as someone from my past who I had respect for, but knew I could never get away with anything with.  For instance, think of a favorite coach you had or a teacher you loved, but you knew would say no to a silly request or excuse - so you just never went there.  That person was probably not mean in any way.  Just not a pushover, if you know what I mean.

It also helps to start writing up a list of nice ways of saying no to your tenants.  Like:

I'm sorry, but that's not in the budget.

I understand what you're saying you want, but we are not able to provide that.

And if they get really obnoxious, give them the "happy clause": I can see that you're not happy here.  I tell you what, if you decide you want to move, I'll allow you to just give 30 days written notice.  I can put that in writing if you want."

You can say all of the above in a friendly, understanding way.  But, they'll hear "no."  You're not being a beoch, you're just being a firm businessperson.

Account Closed · Answer

When i started out, I initially chose the co-applicant option online for the screening service we used.  I quickly learned that they weren't as thorough as when I submitted them as separate applicants.  I can't think of a specific example right now, but I ran them all separately afterwards.

I agree you need your criteria written down.  Because a lot of applicants are really charming, and you find yourself wanting them to qualify.  And sometimes the wife will have great credit and the husband doesn't.  And I've had married couples end up divorcing.  Fortunately, I just had month to month agreements, so if there were problems I could give notice.

But, I learned to be tougher in saying "no," even if one had great credit.  "I'm sorry, but every applicant must meet the credit/eviction/criminal criteria."  In CA, we had to allow for combined income to meet the income requirement, but I could require every adult to meet the other criteria.

Anyway, I agree you should run their reports separately.

Kevin Nalley · Answer

100% agree with Greg...   I would also like to suggest writing down your rules and guidelines.  This was helpful for me in the beginning.  I made it clear on my website, along with an instruction sheet that accompanied every application, about what I would and would not accept.  This may help to take the emotion out of it, and you want to be fair by enforcing the same rules for everyone.  My rule on the above is every ADULT in the household must fill out an application.

Account Closed · Answer

I'm the same as Kevin, every adult fills out an application.

Marissa Mallamo · Answer

Thank you all for the responses! Just needed a little positive reinforcement. I totally agree that I need to separate my emotions and look at it strictly from a business standpoint, especially if I want to successfully grow and scale a rental business. The fact that I am younger (26) and a female, I feel that this plays a part in the emotions side of things. I feel somewhat awkward when I am showing this property to people older then myself and asking them to show me proof of their income, etc. But I know a thorough screening must be done, and this is all just part of a learning experience.

On top of that, this was our home for 2 years before we turned it into a rental, so I have a stronger emotional attachment to it then to a property I never lived in. I also have this mind frame of feeling like the tenants are doing me a favor by living there and paying what I perceive to be a "high" rent. The rent is market rent that matches all other homes in the area. But since I myself have never rented, I am having difficulty getting past the psychology of everything. Again, I am probably delving way to deep into things, but as a newbie I am hoping it's just part of the learning process.

Lastly, do you ever offer to refund/ deduct the application fees once everything checks out and they sign a lease, etc? Obviously if they are denied, the fees are non refundable, but I was thinking of offering to credit them the fees off the first months rent.

@Fred Heller @Nathan Miller Sue K.

Pam Storm · Answer

Excellent thread and suggestions.  Good stuff.  I want to add, if you are uncomfortable saying no or charging for the screening some metrics that might help.  These are based on helping apartments screen over 16 million applicants since 06 - so obviously your property, traffic, locale etc weigh in.. but broadly speaking, nationally, over time:

- a 20% decline rate is about the average, with 2-3% eviction  hits, 8-9% criminal hits, and the rest being credit criteria.  So quite a few applicants expect to be declined or need an extra security deposit

- absolutely document your criteria before reviewing applications for 3 reasons:  1.  to stay compliant 2.  take the emotion out of it  3.  find the best applicants (not in order)

- pretend like you cannot make exceptions, like you have a Regional Manager that you'll have to explain this case to... would it still make sense?

Good luck and great shares above

Penny Clark · Answer

@marissa mallamo, I understand your hesitation to ask for all people 18 or over who will occupy the unit to fill out an application and pay screening fee. However, this is your business to help support your family. A poorly chosen tenant can cost you thousands in eviction fees, repairs, etc. I always charge a screening fee and require anyone 18 or over to fill out an application. I also give the applicants a copy of the report for their records which they appreciate. I also attach a copy of our rental criteria to any ad we run and to the application itself because some applicants will not apply if they know they won't qualify. This saves you the heartache of telling them no.

@kevin nailey, love your screening method and thank you for sharing it!

Married tenants..joint application, separate, or just one spouse?

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