Application Fees - advice on how to process them

[Nancy DeSocio]

Hi All,

I have my first showing tomorrow for a vacant apartment, and it's a group showing. My question is with regards to application fees. If I get a bunch of people who apply (fingers crossed!), I assume some might get eliminated just from the basics on the form (i.e. lack of employment, landlord references, etc), but for all those who pass the initial qualifications, do you process background checks on all of them and then select the best candidate? Or do people process a couple at a time until you have a qualified candidate and then mail back the fee to those who didn't get processed? I feel bad taking $35 from each person when there is only one vacant unit to fill, but mailing back checks seems like a hassle as well. I'd appreciate feedback from those with some experience in this area!

[Bettina F.]

We only do group showings when we have a vacancy.  Bring a friend or partner  who knows not to say anything that violates Fair Housing.  You only answer questions about the property, do not have the friend ask any questions about family size or where the potential applicants are from.  Have your requirements printed out and visible, so that applicants can self screen themselves out, rather than waste an application fee.   Use actual $ numbers -- say "to rent this apartment you must have a monthly income of $X,XXX and total move-in money is $X,XXX" rather than "you must have an income of 3 times the rent".  Do not expect applicants to do math.  Charge an app fee high enough to discourage the unqualified from applying, but accept applications from all.  Let applicants know that you WILL run credit/criminal/eviction checks -- you are not just collecting app fees to line your pocket.

Bring a computer printer/copier to the showing. Ask applicants to bring a copy of their government issued photo ID and a paycheck stub to the showing, if they are interested you can copy right then.  We collect app fees at the showing, run applications and refund the app fees to those who qualified if we rented to another.  We have a standard feel good letter we send to qualified applicants who just did not get the apartment due to only having one vacancy.

In my experience, the people who have to "think about it" are the ones who realize they will not qualify and say that to save face.  You will never hear from them again.  The applicants who know they qualify and want to rent the property, will be very eager to get their app fees and applications in.