Leasing a property is not as easy as it seems; many applicants will blend into the background and some will jump out as a clear front runner. What is most important is choosing the right tenant for you, and by implementing a policy for the selection process you will minimize conflicts and maximize the chances for picking the best tenant.
How Many Applicants is Enough?
It is not uncommon to pick the first applicant that is adequately qualified, and there is nothing wrong with that approach. However, you can always miss out on an even better applicant.
If you are picking the first qualified applicant, there are many upsides such as getting someone in quickly and avoiding the risk of discrimination. Just be sure and take backup applications and hang on to them just in case the tenant you pick decides on another property or your screening shows something that changes your mind. Honesty is the best policy, and notifying the second-in-line that they are the backup will help with your reputation as a landlord and eliminate the candidate from feeling slighted. Place a limit on how many backups you keep, and do not run the screening reports until you have that applicant as the top contender.
How to Rate the Applicants
Many landlords hold open houses as well as solicit tenants through local advertisements. It is always important to set a specific deadline for the applications to be submitted; once again, this will avoid any claims of discrimination. Once the deadline has been met, the rating process should begin. Unfortunately, the process is like comparing apples to oranges; every applicant can be qualified but so different. The first applicant may have sufficient income, but has a pet. Another applicant may have a great profile, but can’t move in until next month.Factors that cannotbe used to rank applicationsare race,disability, or source of income.Factors that are acceptable reasons for ranking a candidate are difficult personality, pets, smoking, or a choppy rental history.The factors must be applied uniformly and not restrict a protected class of individuals.
The best way to rank potential tenants is based on the stability of the applicant, proof offinancial responsibility, and a solid rental history. After that candidate has been identified, the screening process should begin. The screening can include a credit check, speaking with the current landlord and past landlords to rule out problems.
Can’t Find the Right Person?
If you are having trouble finding the right candidate, reevaluate what you have done to seek out tenants. Do you need to change the ad? Maybe the timing is wrong or you need to consider the possibility that the rent is too high, or the property needs some upkeep to bring it into line with competing properties. Go around your neighborhood and scope out other rentals; it will give you a good idea of the competition and allow you to rate your own property against theirs.
Are you considering a move in the near future? The Nate Robinson Home Selling Team is here to help you before, during, and after the process. Call my office at760-566-7600, visit us at 2383 Camino Vida Roble, Suite J inCarlsbad, or send me an email [email protected]
Author:Nathan Robinson Phone: 631-774-6374 Dated: July 28th 2016 Views: 3,200 About Nathan: An entrepreneur and a relentless innovator of the real estate industry, Nate Robinson is the creator...
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