How to reject a tenant who meets all the criteria

Question

Hi all,

Let's say I have two prospective tenants who applied for my property. They both meet my criteria and all have good rental and criminal records. However, one appears to have a higher credit score than the other. How do I reject the one that has lower score. I know I have to provide a reason for rejection and will "having lower score than the other tenant" be a legitimate reason even if his/her credit score still meets my minimum criteria?

Julia Puig Jordan · Answer

say another one came in earlier or that they met the criteria in a better way than them. Or: we already started moving forward with a different applicant.

Terrell Garren · Answer

The reason I do not charge application fees.  I do heavy phone screening, few showings and fewer applications. I decline with a polite - thank you for applying; however, I selected someone else. Never a problem. It's one of the few competitive advantages of a small investor / self manager vs a PM or big hedge fund rental company.

Jim S. · Answer

YOU DO NOT HAVE TO SAY WHY. Just: I have selected someone else. And if they push it, they were first.

Jim K. · Answer

@Terrell Garren

Exactly right. You have to leverage what you can in your position. You can't run 2 rentals like you would 20 rentals and 20 rentals like you would 100 rentals and expect the same business model to apply in your case. Junior running a lemonade stand on the corner does not sponsor stuntmen jumping out of space balloons, Red Bull does not design massive advertising campaigns around Christmas, the CEO of Coca-Cola doesn't pour out every serving of his product and serve it with a charming, gap-toothed grin. It may all be flavored water and rot your teeth in the end but that's not what you need to focus on if you want to succeed in each position, let alone get to a different level.

Nathan Gesner · Answer

@Mike Toole I just say, "We had multiple applications come in at the same time and have decided to rent to another applicant."

You do not need to give them a reason, but I think some response is the responsible thing to do.

Wesley W. · Answer

@Mike Toole  As I understand it, you do not have to give a reason why you rejected them unless you used a credit report to inform your decision.  Then, you have to send them what's referred to as an "adverse action letter."

Apart from that, just tell them you went with a more qualified applicant (unless you are in a jurisdiction that requires first come, first serve - ridiculous, by the way).

Right on my application it says this:

This application is for qualification purposes only.  Applicant understands that landlord may accept multiple applications for this rental unit and retains sole discretion to select the most qualified applicant.

Also, as long as you are not rejecting them due to a protected class, you should be good.  As others have said, you are not REQUIRED to tell them the reason - and I would advise against it as at the very least will put you in a position for extended dialogue trying to defend your decision, or worse an accusation of discrimination.

I would not lie and tell them someone else was first.  (Again, you do not need to explain yourself in most cases.)  I always imagine having to explain my reasoning in front of a judge, and if I couldn't prove a claim, I would avoid it.  And I'd always reserve the reasoning for my business decision for a judge, not the tenant.

Good luck!

Grigory Pekarsky · Answer

If you are a landlord, it is important to establish clear policies for rejecting applicants. This ensures the best fit between tenant and property, which ultimately results in less turnover.

When deciding whether or not to reject an applicant who meets all of your criteria, consider these questions:

Is their income high enough? Do they have good references? Are their pets allowed? Is there anything that would prevent them from being able to pay the rent on time every month?

If you answer "yes" to all of these questions, then you can probably safely reject this candidate without any issues. If one of your answers was "no," however, it may be worth considering accepting them if they are otherwise qualified.

John Morgan · Answer

I always say thanks for applying but I moved forward with someone else. However, you’re my backup in case something something falls through with the people I picked. They always act really nice and excited to be the alternate ready to go. This way they still have hope. And don’t complain about the $29 Zillow rental manager charged them for the app and background check.

Scott M. · Answer

Short and sweet works.  Thank you for applying for our property.  We have decided to move forward with another applicant.

99% of the time that will be that.

Max T. · Answer

@Mike Toole

I went with a more qualified applicant.

How to reject a tenant who meets all the criteria

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