Multiple Applicants- One not Qualified

Multiple Applicants- One not Qualified

Member since 2020 · 27 posts · 4 votes

Hi,

I'm creating my landlord documents and the BP template I received has a line that confuses me. Under Qualification Standards (such as 3x/rent income, US resident, etc), it says

"At landlord’s discretion, compensating factors such as an additional security deposit or co-signer (guarantor) may be required for qualification if Applicant fails to meet any one of the above requirements. In the event of multiple applicants, tenancy will be granted to the most qualified, based on the above criteria." 

Is the 2nd sentence saying that if 1 of the 2 applicants are qualified, then both applicants will be accepted? Thinking through different situations makes me hesitant to keep this sentence in the document. There's a difference between having 1 applicant who exceeds the 3x/rent amount with their income but has a spouse as a stay at home parent with no income (thus making that 2nd parent ineligible) vs if one of 1 applicants has a criminal record but the other does not. 

Am I reading or thinking about this wrong? Can someone clarify? Should I revise/remove that sentence? TIA!

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  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    5y

    I think what it's saying is that if you have one applicant come along and turn in an application and on paper they meet all of your criteria (income = 3x the monthly rent, no prior evictions, good prior landlord references, one year stable work history, or whatever).  But then you have a second applicant come along and also turn in an application and they not only meet your criteria but way exceed it (income 5x the monthly rent, no prior evictions, glowing prior landlord references, 12 years at the same job, etc), that you're going to pick the MOST qualified applicant out of the two (assuming you don't live in a jurisdiction that requires you to go with the FIRST qualified).  

  • Member since 2021 · 17 posts · 14 votes
    5y
    Hello, you may have to check and follow your specific state laws or guidelines concerning this issue. But here's my take on it, to me, that second sentence is making the applicant aware there may be other applications that maybe better qualified. If so, the landlord may be choose one of these better qualified applicants over theirs, even if they may have submitted theirs first. And it makes a point of stating that you will be going by the specific criteria as listed in the application paperwork.


  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    5y

    Don't over think it.   Why not go with the first applicant that meets the criteria.   Make your criteria higher if you want.   Just put the rental criteria in writing and the first person that submits the app AND meets the criteria gets the house.    You really open yourself up for fair housing violations if you leave it something else. 

  • Member since 2020 · 27 posts · 4 votes
    5y

    Thank you everyone! I was misreading it, but it makes sense now. 

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