Best process for showing and renting to tenants

[Troy B.]

I think I'm a little unsure about the best way to show a unit to prospective tenants. Do you have a rental application process with credit checks and criminal? Do you take reserve deposits or do you just have them sign the lease after a good verbal interview? I'm sure you all do it differently but it would be nice to hear all your thoughts.

[Brandon Turner]

I'm pretty similar to Jon. I make sure to let all prospective callers know about my minimum standards which are:
1.) Minimum income of 3x the monthly rent
2.) No recent felonies (I keep this vague so I can be flexible if needed)
3.) Good references from previous landlords
4.) No evictions.

I try to schedule as many showings at the same time. I've found that 50% of scheduled showings will not show up, so by having several at one time, while a little awkward, it creates both a competitive atmosphere (good for business) and reduces wasted time.

I bring with lots of applications and give one for each applicant (so two applications if its a husband and wife). I charge $35 for the app fee for the first person and $20 each person after the first (over 18 years old).

I tell people that I run applications on a first-come-first-serve basis so be sure to get the application in quickly. I also let them know I don't even look at applications if they don't include a money order or cashiers check for the application fee.

I then run the background check (I don't do a full credit check - just background, criminal, eviction, judgments, etc ... I assume they all have bad credit). I call past landlords (not just current) and their job.

If they qualify, I then call and tell them that they have 24 hours to pay the "deposit to hold" - which is basically the security deposit. This guarantees the property is theirs. If the property is real "hot" sometimes tenants will pay the "deposit to hold" money with their applications (this is uncommon around here, though).

I will generally never hold a property more than two weeks, but I'm flexible depending on how strong of a tenant the person is.

Finally, we get together and sign the lease on the day they move in, where they pay the entire first months rent (no matter what day they move in) via cashiers check or money order.

Hope this helps! Good luck and keep in touch!