Suggestions? How to screen tenants if realtor shows house

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Suggestions? How to screen tenants if realtor shows house

Account Closed
Schertz, TX · Member since 2016 · 14 posts · 1 vote

Rookie question...We just completed a cosmetic rehab on our first house and placed it for rent this week. I plan to self-manage, so I had hoped to show the house myself and personally meet any potential tenants. From just a yard sign and Zillow, I actually got a fair number of inquiries. For safety reasons and to make sure they qualified, I would send a link to the free application offered by erentpayment. I have received zero applications back. My realtor posted it on MLS, which increased my inquiries from individuals. Again, no applications received. A fellow landlord friend of mine, said that I probably won't get any because no one is going to fill out an application (even a simple one) before seeing the house. (We're in San Antonio, so there is an abundance of available rentals.)

Now I have a couple of realtors interested in showing it. I only get a text/phone call from the showing service asking to confirm that the house is available at a certain time. This completely cuts me out of the process of meeting the tenants and puts a lot of trust in a realtor that I have never met. Plus they are working on the behalf of their client, not me. I think actually meeting the person is critical before offering a contract, especially if I am going to manage the property myself.

Is there an intermediate step I can take, so that I'm not cut out of the loop of selecting MY tenant? My application and credit/background check are all online, so showing the house was my opportunity to get to know the tenant and look out for red flags.  

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y

You screen the tenant the same way you would if they don't have an agent. There is no reason you need to meet them before they see the available unit.  Looking out for red flags by seeing someone in person is just asking to be reported for a fair housing violation.

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  • Frank Chin
    Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
    9y

    I suspect with all the identity theft going on, people are reluctant submit applications, to persons unknown.

    I recently re-rented my property through Craigslist, Zillow, which includes Trulia. Folks called, emailed, texted and practically no one volunteered any personal information before hand. We had 2 open houses, about 70 people inquired, about 40 came to look, 10 left applications. Told those who left applications they can leave their SS# off, till they are selected and we run credit checks. 

    Usually, after they see the house, feel comfortable with you, they will bring their W2's, and submit personal info. If you feel you are personable, you should have no problems. An alternative to this is to give the realtor the listing, have them hold open houses, and you'll be there at the showing. I discussed this option with my wife in case she doesn't feel safe being there alone doing the showing.

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Account Closed just because a Realtor shows the property, doesn't mean that you still can't prequalify them. Make a list of questions that you deem appropriate; when do they need, how many persons to occupy, what is their budget, any pets, have they ever been evicted, have they or are they currently in bankruptcy? Adding any others that you deem appropriate. If after they answer those, then they can see and be shown either by you or a Realtor. After they are "prequalifed", then if they want to rent the home, that's when they fill out an application, not beforehand. 

    Make sure to let all applicants know if you are accepting many before you choose, or if you are accepting one at a time. Please be as transparent as possible. This avoid pissed off people, and ones who are seriously interested

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    You screen the tenant the same way you would if they don't have an agent. There is no reason you need to meet them before they see the available unit.  Looking out for red flags by seeing someone in person is just asking to be reported for a fair housing violation.

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    @Kim Meredith Hampton has great suggestions about questions to ask prior to even viewing.  Pre-screen before crazy enters your rental!

    I can't imagine going with a yard sign and zillow or anything with my number in it at first again.  I would be answering the same questions 70 times a day! Not anymore. 

    In my CL ads, I ask questions like Kim suggests.  How many people?  How many animals?  Does anyone smoke, etc.  If we get to the showing, my places are usually almost done but not quite.  My last but not least sniff test is for nit-pickers.  The flexible and tolerant won't be bothered by it not being quite done, nit-pickers will look down their nose at me at point it all out.  Sometimes I forget to bring applications to the showing.  I am more concerned at this point about placing a problem than a little more vacancy.  Good luck @Account Closed!

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  • Frank Chin
    Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Steve Vaughan:

    @Kim Meredith Hampton has great suggestions about questions to ask prior to even viewing.  Pre-screen before crazy enters your rental!

    I can't imagine going with a yard sign and zillow or anything with my number in it at first again.  I would be answering the same questions 70 times a day! Not anymore. 

    In my CL ads, I ask questions like Kim suggests.  How many people?  How many animals?  Does anyone smoke, etc.  If we get to the showing, my places are usually almost done but not quite.  My last but not least sniff test is for nit-pickers.  The flexible and tolerant won't be bothered by it not being quite done, nit-pickers will look down their nose at me at point it all out.  Sometimes I forget to bring applications to the showing.  I am more concerned at this point about placing a problem than a little more vacancy.  Good luck @Account Closed!

     I've been doing for over 30 years. Having to self manage, one of the things I have to watch out for is accusations of discrimination. Years ago, in NYC, the city and the NAACP would send testers to rentals where they suspect problems.

    In the beginning, when I try to screen out crazys, I get comments like, you have problems with blacks? single woman? gays? etc. The list goes on. So I gave up on it, and say "Everyone is welcomed to look", adding "I just want to save you time".

    I don't mind answering the same question 70 times. We sorta pre qualify them over the phone, by talking to them, to get a feel. For those with too many people, I say "it's too small for you, but come see for yourself anyway". I always say "come take a look anyway".

    Over the years, this "come to take a look anyway" with slightly below market rents adds to a mob scene at open houses. At first, I thought it was bad. But then, I found the good side where I say to disappointed tenants, "you're great, unfortunately there's so many people that want it". They would nod and say "I can see that".

    The only thing I watch out for through the years is an applicant that established, or try to, that they're the first one to see the place and I must rent to them. One guy I recalled tried to do that called me 7:00am and when I told him he shouldn't call that early said "but, am I the first one"? Said he followed the ads in the NY Times and it's the 1st time my rentals was listed. I said to myself "oh oh, I got a wise guy here". I thought fast, then said, "oh no, I advertised in the local Chinese newspaper last week, did you see that?" Then he sound dejected  (he din't sound Chinese) "I don't read the Chinese newspapers, I guess I don't have a chance now".  Then I said "I haven't decided on those applicants, and everyone coming to the open house today has an even chance, so you're welcome to come". In fact, he never came, figuring the only way to get an apartment is to bulldoze the landlord he's the first on line.  Or he could be a NAACP spy.

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y
    Originally posted by @Frank Chin:
    Originally posted by @Steve Vaughan:

    @Kim Meredith Hampton has great suggestions about questions to ask prior to even viewing.  Pre-screen before crazy enters your rental!

    I can't imagine going with a yard sign and zillow or anything with my number in it at first again.  I would be answering the same questions 70 times a day! Not anymore. 

    In my CL ads, I ask questions like Kim suggests.  How many people?  How many animals?  Does anyone smoke, etc.  If we get to the showing, my places are usually almost done but not quite.  My last but not least sniff test is for nit-pickers.  The flexible and tolerant won't be bothered by it not being quite done, nit-pickers will look down their nose at me at point it all out.  Sometimes I forget to bring applications to the showing.  I am more concerned at this point about placing a problem than a little more vacancy.  Good luck @Account Closed!

     I've been doing for over 30 years. Having to self manage, one of the things I have to watch out for is accusations of discrimination. Years ago, in NYC, the city and the NAACP would send testers to rentals where they suspect problems.

    In the beginning, when I try to screen out crazys, I get comments like, you have problems with blacks? single woman? gays? etc. The list goes on. So I gave up on it, and say "Everyone is welcomed to look", adding "I just want to save you time".

    I don't mind answering the same question 70 times. We sorta pre qualify them over the phone, by talking to them, to get a feel. For those with too many people, I say "it's too small for you, but come see for yourself anyway". I always say "come take a look anyway".

    Over the years, this "come to take a look anyway" with slightly below market rents adds to a mob scene at open houses. At first, I thought it was bad. But then, I found the good side where I say to disappointed tenants, "you're great, unfortunately there's so many people that want it". They would nod and say "I can see that".

    The only thing I watch out for through the years is an applicant that established, or try to, that they're the first one to see the place and I must rent to them. One guy I recalled tried to do that called me 7:00am and when I told him he shouldn't call that early said "but, am I the first one"? Said he followed the ads in the NY Times and it's the 1st time my rentals was listed. I said to myself "oh oh, I got a wise guy here". I thought fast, then said, "oh no, I advertised in the local Chinese newspaper last week, did you see that?" Then he sound dejected  (he din't sound Chinese) "I don't read the Chinese newspapers, I guess I don't have a chance now".  Then I said "I haven't decided on those applicants, and everyone coming to the open house today has an even chance, so you're welcome to come". In fact, he never came, figuring the only way to get an apartment is to bulldoze the landlord he's the first on line.  Or he could be a NAACP spy.

     Thanks for sharing your experience, Frank. Wow.  30 years is a long time!  Guess I'm just a pup with 15 :)

    The beauty of real estate is the control we have, to choose our methods within the law.  As you are welcome to post ads in large newspapers and field calls at 7:00 in the morning and throughout the day and night without let-up, I am free to choose a more guarded approach, not even giving my ph# out until they are moving in.   As long as we apply the same guidelines to all applicants equally we are usually ok.  Cheers!  

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  • Kimberly H.
    Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
    9y

    @Account Closed limit it to like four questions for the prescreen, because any more than that is just to much work. We do how many total occupants, what pets do you have, what is total verifiable household income, what move-in date do you want.  For us, the answers to those questions eliminate the most people.

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  • Katie Fiola Jones
    Rental Property Investor · Denver, CO · Member since 2017 · 82 posts · 38 votes
    9y

    People are definitely not applying because they probably thing it is a scam. 

    I don't think it is necessary to meet the people before they move in. In fact it might be better for you because it cuts out the emotional ties you may develop with someone. If you meet them and develop a great relationship with them it may be hard for you to make a tough decision later if their background check comes back negatively. Or even further down if they decide not to pay rent, it may be hard to be demanding if you have developed a personal relationship with them. 

    I would let the realtors keep showing your property and meet your new tenants afterwards. Keep the relationship with them strictly business. 

    I work as a leasing agent in a property management company. We are hired to be the bad guys for landlords when tough situations come up. 

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  • Rick Pozos
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    Let the realtors show the property. After they see the property, they can fill out the application and get it to you. If income, past rental history, pet info, etc. checks out, why would you NOT want to rent to them. Your qualifications must be reasonable, but you can require 2 year rental history, or 2 year work history or whatever, but it has to be consistent with everyone. You can not discriminate. Crazy comes in every shape size and color. BUT Crazy can not usually keep a job for very long or stay at a rental for very long.

    Rentals are a big leap of faith that can only be mitigated by the income verification, past rent history verification, and little else. 

    Good luck!!!

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  • Josue Vargas
    Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    9y

    @Account Closed

    If you have a lot of inquiries and you want to meet them in person, set up an open house (like a Sunday 1-4pm or something like that) in your add.  From there, you can have a questionnaire for pre-screening and the more serious ones will likely give you all the info you require for a screening.  Of course not everyone will attend, and not everyone will fill-out the form, but you will likely cut the 50% of people just asking for the add that are not serious.  Also, with a little luck, you have more than one prospect in your house at the time, and they will see that they are competing with other prospects, it creates competition between them and this is a good thing for you.  Good luck. 

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  • Jesse C.
    San Francisco, CA · Member since 2016 · 10 posts · 3 votes
    9y

    There are lots of great online tools that are intermediaries between the landlord / applicant where the applicant never needs to reveal personal information (such as SSN etc) to the screener. 

    When I had a vacancy last time, I used Cozy.co for prospects to submit rental applications, which includes background check, credit check (using a 3rd party software) to provide an integrated view of the applicant's profile. The application also asks for income profile so you can see the income/rent ratio.  

    It worked out great - where the only thing missing was the personal interview, which I conducted during the open house. If you're remote, you can screen applicants electronically as long as you have someone show the unit onsite. Also, posting the qualifications (rent / income ratio, credit etc) in the advertising will weed out folks you don't necessarily want to apply anyway.

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  • Josue Vargas
    Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    9y

    Unless you are screening a ghost, you need a SSN to run a credit score or background check. Now, the right time to do that is after your pre-screen, most likely after they have seen the property.  

    You need the SSN if you want to screen them properly! And they need to understand this.  

    A friend of mine, engineer and co-worker, and someone who knows anything about investment properties was complaining about the landlord asking for his and his wife SSN and salary history.  After I explained to him why most landlords ask for this, he quickly understood, but still he was mad because nobody told him that.  

    Sometimes it is good to explain why we do that, not just to have a SSN of a person we don't know... 

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