All Forum Posts by: Cameron Riley

So long as you arent collecting the fees without running the applicant through the screening process, i don't think it's over kill. At first i thought it was a high number of applications but in my area if you advertise that you're looking for a section 8 tenant you'll usually get a flood of applications

@Cameron Riley

If you're renting apartments that are in such high demand and the people you actually want to rent to are handing over their money like that, well, you're charging what the market will bear.

I, personally, suspect I would reliably land crappy tenants and/or convert possibly good tenants to terrible tenants with that approach in my C-class long-term rental properties, for a bunch of reasons. If your mileage differs, then you should do it.

If people are willing to play the lottery for the bare OPPORTUNITY to apply for an apartment, that's their business.

 So what you are saying is, might as well take money from poor people for my own gain. Worse yet you think it is funny. This is why landlords get called names, because bad actors take advantage of people. I encourage you to hold yourself and your business to a higher standard. There are several things you could do:

1. You could simply stop taking applications after 5 or even 10. There is no reason to take 20 with your low qualification standards.

2. You could use a "first qualified" approval method and tell everyone "you can apply but there are X number of people in line in front of you, so make sure you wan to pay. Honestly with your listed qualification standards, anyone on Section 8 would meet your standards anyway.

3. You could refund money to anyone you chose not to screen. 

 I guess I should have been more specific.  When it comes to ethics in particular, if you have to ask, you know the answer.

Hey Cameron, I think that is a great way to make some money. I don't necessarily think it is unethical, as long as the amount isn't more the $25. This amount might just be because of the area that I am in. If you are in a more expensive market, like CA, then that is subject to change. Bottom line, I wouldn't have a high application fee just so I can make some money on peoples applications. Maybe you want to host an open house so people can see the place and know if they even like it before they pay an application fee. That way you weed some people out and you are still giving them the opportunity to see the place without paying you. 

In conclusion, I think it is a great way to make some extra money and don't think it is unethical. As long as you are making sure people know that just because you give them an application and they pay you money, doesn't mean they will get the place. I don't think there is any laws that prohibit from excessive app fees or the amount you can hand out. But I don't know your state, so look into that yourself. 

Hope this gave you another perspective. -Caleb

@Cameron Riley You should cut if off after you have an appropriate amount of well qualified applicants. You only need 1 well qualified tenant... 

If 90% of your applicants are not qualified then make your application requirements clearer (# of references, minimum income, length of employment history, etc.)

If you are truly getting 20-25 well qualified tenants then increase your rent by 10-20%

 So if you are collecting only $25 and paying a third party, I wonder if that third party is doing credit and criminal background checks? In my experience the cost of running those checks by itself it $25. Maybe as a way to better filter people, change your application fee to $50 per applicant and run credit/criminal back ground checks. 

Another question is if you are pre-screening of any type? I just question why you are getting so many applicants. It seems either un-qualified people are applying or your rent is far too low.