All Forum Posts by: Cameron Riley

Simple answer: yes, it's unethical. If you don't have a pre-screening process already in place to weed out people who have no shot then you are simply using the application process as a revenue generator. I would consider that unethical if not downright illegal. We pre-screen for free and then Transunion (or, lately Zillow) collect fees for the credit/background checks. The application is not the point to us, the successful tenant is. If I had that many paid applicants I would seriously revisit my screening process or my rent levels. 

@Cameron Riley

It sounds like people have access to an online application without you sending it to them. I meet with folks, show them the unit, talk about the rules, ask about their lives, and then send them a link to the application. After I get about 3 in process, I start telling new prospects that I have applications in already and I’ll put them on a list in case they all fall through.

There would never be a scenario where I’d receive 25 applications.

I don't know any landlord who actually does full screening that makes money from applications. All my application fee goes towards the credit and background check. On top of that I have time verifying references and employment, so each applicant costs me more than I get. I view applications like acquiring customers in any other business - there is a cost. For that reason I do pre-screening and I accept first qualified applicant. I rarely get more than two applicants, just because of my process.

Since you are asking if it is unethical, it leads me to believe you are collecting money and not even screening people. Maybe you look through the stack and pick a good one. I am not sure what your process is, but if you are not screening people, you should not be charging people. If someone has no chance of getting approved, don't take their money. Section 8 people are on a fixed income, so you are taking from the poorest people during a pandemic.

@Cameron Riley 20-25 applications with fees is excessive. If most of these applicants are qualified, then increase your rent. 

I would make sure you tell the applicants how many other applications you received. I would also return the app fees for any applicants you don't screen. For example, if you decide to rent to applicant #6, only keep the fees for the first 6 applicants. 

On your journey towards being a real estate mogul, these $25 application fees are peanuts. Do the right thing and return the fees for any applicants you did not seriously consider. 

@Cameron Riley can you accept the application fees in batches so you’re not accepting everyone’s application fees at once?

@Cameron Riley learned this in business. If you have to ask, then you already know the answer.

As long as people know they will be competing against other applications when they apply I see nothing wrong with it.