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All Forum Posts by: Kat Rathell

Kat Rathell has started 19 posts and replied 88 times.

Post: Refunding rental application fee

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49
Originally posted by @Anthony Wick:

@Kat Rathell

I just looked. You’re the third worst state. Only 2 other states don’t allow any fee. That stinks. I make no profit at all in applications. But to have to actually pay out of pocket to screen people? Brutal.

Lol, that’s what I thought when I first heard about it ;). So, not only does it take time to run full-blown background checks, it costs landlords money here ;). 

Post: Refunding rental application fee

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

@Anthony Wick, it is a good avenue, and I have thought about it, but it increases the amount of money applicants will have to contribute due to cost of those services. I like an extensive background check, and those cost $30-$40, but we are only allowed to ask for $20 max in Wisconsin, and pay the rest ourselves. The $19.99 background checks don’t have the detail I think is important in screening for properties we deal with.

Post: Refunding rental application fee

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

@Steve Vaughan, not screening enough may be our vice, but I am wondering about turning prospective tenants away by requiring an online application prior to a showing. Some may be older and not tech savvy, some may want to see what they are applying for before they apply.

In your experience, do C/D tenants tend to respond to questions that extensive in advance?

Thank you!

Post: Refunding rental application fee

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

@John Underwood, I wish, and yes, our time is of value, but it’s illegal in WI :(

Post: Refunding rental application fee

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

@JD Martin, I agree, wholeheartedly, but - we do have a free online application form, in the ad, and I encourage everyone to apply online for FREE, but as it turns out, people considering rentals in neighborhoods we invest in like to see the house, grab a paper form, fill it out on-site​, leave $20 and go. Only 1 so far filled in the online form, the rest want a paper one after a showing. Then they leave $20 and leave :).

Post: Refunding rental application fee

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

We have properties in C/C- neighborhoods, so, a lot of prospective tenants come with ‘baggage’ - evictions, criminal records, etc.

As a result, once we receive applications with authorization to conduct background checks, what we’ve done is first run the name/DOB through the local court records, and only run a full background/credit check if we don’t find something worrisome (defaulted debts, multiple/recent evictions, violent crimes, etc.).

It is a lot quicker that way, and also costs applicants less.

However, we are left with the burden of refunding application fees, since in WI you can only use the application fees to conduct background/credit checks, and have to provide tenants with a copy of the results upon request.

Any suggestions on quick and easy ways to refund application fees?

Thanks in advance!

Post: Questioning Tenant Provided info

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49
Originally posted by @Jessica Schonter:

Ok so do I just move on or do I need to give a reason?

On our application forms we have a disclaimer that incorrect or missing information may lead to a rejection of the rental application. Do you have any such disclaimer?

Also, other BP members were adivsing me that incomplete/incorrect applications are - and should be - reason for rejection, and as such should be part of your screening process.  

Now, here is a cautionary tale about using applicant-provided phone numbers:

We had an applicant recently who was very personable, interested in the property, good communicator, submitted an application right away. However, part of my background is in identifying fraudulent documentation, and because of that I don’t automatically trust contact information provided by the applicant. My rule of thumb is to go to the source.

So, for prior landlord contact information I checked the address of the apartment complex and called the number listed in the google entry, which was different than that listed on the application. I didn’t get past the voicemail on that one, so, I moved onto the employment verification.

Again, instead of the ‘supervisor’ phone number, I contacted HR directly, and it turned out that the applicant did not - and never had - worked there. Who the ‘supervisor’ phone number belonged to I can only guess, may have been a friend or a family member.

I can not stress this enough - verify information listed on the application form. 

Plus, your background check and credit report may not have the most current - or accurate - employment information.

Always go to the source and do not trust that the source listed by the applicant is the correct one. It may be, but there is a chance it is not. 

Post: Prospective tenant red flags at showing

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

@Marcus Auerbach, thank you!

I do have the ‘WI way’ downloaded, and we do also use some of the WI Legal Blank forms! I like the way you put it with ‘intention to break the lease rules’ and ‘not providing complete and truthful information’ - I will keep those in my arsenal of rejection reasons for later :).

I do make notes on the application forms as to why the applicant was rejected, trying to stay neutral and using generic terms.

Thanks again!

Post: Prospective tenant red flags at showing

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

@Seth Dettenmaier, no worries! I am very grateful for you taking the time to share your advice and reference resources! And for pointing out that there is, indeed, a spectrum, and that there is a decision to be made on where you will be on it.

Best of luck to you also!

Post: Prospective tenant red flags at showing

Kat RathellPosted
  • Rental Property Investor
  • Milwaukee, WI
  • Posts 88
  • Votes 49

@Ed B., thank you, for your advice, information and sharing your past experiences! It makes perfect sense to hold out for more qualified candidates to avoid issues in the long run.