Application fees refund

[Deb Searcey]

I’m currently advertising my rental unit. I’ve had about 20 calls and texts. I gave everyone a time frame to come by and look since I’ll be painting the trim and finishing up last minute details. 

I have applications ready to go and am charging a small fee. 

I’m only going to run reports on people who I get a good vibe from and who have the income to afford it. 

1. Should I return the application fees for those who I don’t rent to? I feel weird taking there money if they won’t live here. 

2. Should I just run checks one at a time until I find a good candidate? 

3. How do I tell those that I’m not interested in that it’s a no? 

I’m not good at this part.....

[Marc Winter]

There's a lot of good advice here. Let me summarize how we handle it, and stay on the right side of the HUD rules:

1.  Have a WRITTEN list of the criteria you expect of what constitutes a qualified tenant--be detailed. Have a written list of all the documentation you will require from the applicant.  Give all that to the applicant along with the application.  Plainly print on the application:  "APPLICATION FEES ARE NON-REFUNDABLE".  Have all those packages assembled and ready to hand out when you are showing so there are no 'mix-ups'.

2. Give that package to everyone that actually comes to view the property and asks for an application, regardless of your 'good vibe/gut feel'. Your guts will really be feeling it if you treat Mr. X any differently than you treat Mr. Y, and they complain to HUD.

3.  Run the background checks on EVERY application (with proper fee) you receive.  For those that don't qualify, have a form letter of non-acceptance (for example, you have a more qualified applicant, if that is the truth) and notify them in writing.  DO NOT treat any applicant differently than any other based on 'the vibe'.  This is a great business, but you MUST know and follow the rules/laws.

4.  Keep all applications, accepted or declined, on file for ever.