• filter:

Landlord, accepting multiple applications, picking the strongest

  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
Landlord, accepting multiple applications, picking the strongest.  Let say all of the candidates qualify and meet minimum requirements.  I accept the one with highest take home income and credit score.  Is this legal to reject the rest even though they all qualify?  What do the tell them in the rejection letter?

Member Summary
Most Recent Posts
Income, credit score in the same ball park, one party shows up in a clean car, talk politely, other shows up in a trashy... (more)

king0fSpades (Jul. 13, 2017 @ 3:30p) |

If the trashy applicant is a member of a protected class, there's always a chance they could claim discrimination if the... (more)

meade18 (Jul. 13, 2017 @ 4:01p) |

Right. A single action is not illegal by itself. Someone would have to demonstrate a pattern of discrimination for it to... (more)

scripta (Jul. 14, 2017 @ 1:40p) |

Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
legal - absolutely. You can't rent it to all of them. You can't pick one because of race/religion/other illegal stuff.

Why do you need to give them a reason in the rejection letter?

"thank you for your interest in trying to rent this property. Unfortunately it has been rented to someone else."

rated:
Did you already agree to another before this better tenant came in?
That's illegal.

rated:
forbin4040 said:   Did you already agree to another before this better tenant came in?
That's illegal.

  Not agreeing to anyone.  My current tenant only gave me half hour for showings.  I have arranged 6 candidates in that half hour.  I have emailed applications to all.  They will all bring those filled.  If they like the house, they will give the application to me.  So tomorrow, hopefully I have more than one filled applications.  
 

rated:
I have done something similar, but good karma comes if you refund/reimburse the app fees of the applicants that were otherwise qualifed. As i have filled another vacancy quickly with an applicant that didn't get the previous house.

It takes me 2-3 business days to process an app and I process every app I get, so occasionally I get mutiple qualified apps before a lease is signed.

rated:
I wouldn't worry too much about it until you get at least two chickens that:
Show up
Apply
Meet minimum requirements

rated:
rufflesinc said:   I have done something similar, but good karma comes if you refund/reimburse the app fees of the applicants that were otherwise qualifed. As i have filled another vacancy quickly with an applicant that didn't get the previous house.

It takes me 2-3 business days to process an app and I process every app I get, so occasionally I get mutiple qualified apps before a lease is signed.

  Absolutely I have to refund money.   For example one has paystub showing great income and YTD income.  2nd has a business with bank statement.  I would run the credit for the first one and give the house to them.
Problem would be telling no to the 2nd party.  People take rejections personally.   

rated:
There are 2 ways it can be an issue.

1. You don't actually rent to someone else making it odd you would turn down a qualified applicant.
2. You tell the applicant they are being rejected because of there race, religion, family status or any other protected class.

Outside of that telling someone that they didn't get the property because another applicant was chosen shouldn't be a devastating blow to them.  Telling them they are "unqualified" would be insulting but no one should feel hurt that someone else has higher income/better credit that is life. If it is you certainly picked the right tenant.

Where it gets interesting is if the guy you reject immediately offers more money.

rated:
king0fSpades said:   rufflesinc said:   I have done something similar, but good karma comes if you refund/reimburse the app fees of the applicants that were otherwise qualifed. As i have filled another vacancy quickly with an applicant that didn't get the previous house.

It takes me 2-3 business days to process an app and I process every app I get, so occasionally I get mutiple qualified apps before a lease is signed.

  Absolutely I have to refund money.   For example one has paystub showing great income and YTD income.  2nd has a business with bank statement.  I would run the credit for the first one and give the house to them.
Problem would be telling no to the 2nd party.  People take rejections personally.   


Must be a small noncompetitive market. Around here people expect to be rejected since the competition is so fierce. They thank their lucky stars that someone allows them to rent a place.

rated:
landl96 said:   king0fSpades said:   rufflesinc said:   I have done something similar, but good karma comes if you refund/reimburse the app fees of the applicants that were otherwise qualifed. As i have filled another vacancy quickly with an applicant that didn't get the previous house.

It takes me 2-3 business days to process an app and I process every app I get, so occasionally I get mutiple qualified apps before a lease is signed.

  Absolutely I have to refund money.   For example one has paystub showing great income and YTD income.  2nd has a business with bank statement.  I would run the credit for the first one and give the house to them.
Problem would be telling no to the 2nd party.  People take rejections personally.   


Must be a small noncompetitive market. Around here people expect to be rejected since the competition is so fierce. They thank their lucky stars that someone allows them to rent a place.
that means the property is underpriced

rated:
king0fSpades said:   
...  People take rejections personally.   

  
I think thats more the exception.

I have yet to see a tenant take it personally.  Some get disappointed but thats about it.    I've had people flip out a lot worse over my dog policy.


 

rated:
rufflesinc said:   
landl96 said:   
king0fSpades said:   
rufflesinc said:   I have done something similar, but good karma comes if you refund/reimburse the app fees of the applicants that were otherwise qualifed. As i have filled another vacancy quickly with an applicant that didn't get the previous house.

It takes me 2-3 business days to process an app and I process every app I get, so occasionally I get mutiple qualified apps before a lease is signed.

  Absolutely I have to refund money.   For example one has paystub showing great income and YTD income.  2nd has a business with bank statement.  I would run the credit for the first one and give the house to them.
Problem would be telling no to the 2nd party.  People take rejections personally.   


Must be a small noncompetitive market. Around here people expect to be rejected since the competition is so fierce. They thank their lucky stars that someone allows them to rent a place.

that means the property is underpriced

  

I'd like to see you set the rent for a property in Portland.

I'm sure you'd get it 100% exactly correct... 
 

rated:
king0fSpades said:   
People take rejections personally.   

  
Use that to your advantage.  In the rejection letter to those you don't want to rent to, don't give them any hope for renting in the future.  For those you would like as tenants, be sympathetic, and pour it on thick.  Sorry, the property was rented to another interested party.  However, if it falls through, I will definitely contact you, as you are the kind of renter I am seeking.  Blah, blah, blah...  Or, if you have other rental properties, tell them about them and that you would welcome the opportunity to show them something similar...

rated:
jerosen said:   
rufflesinc said:   
landl96 said:   
king0fSpades said:   
rufflesinc said:   I have done something similar, but good karma comes if you refund/reimburse the app fees of the applicants that were otherwise qualifed. As i have filled another vacancy quickly with an applicant that didn't get the previous house.

It takes me 2-3 business days to process an app and I process every app I get, so occasionally I get mutiple qualified apps before a lease is signed.

  Absolutely I have to refund money.   For example one has paystub showing great income and YTD income.  2nd has a business with bank statement.  I would run the credit for the first one and give the house to them.
Problem would be telling no to the 2nd party.  People take rejections personally.   


Must be a small noncompetitive market. Around here people expect to be rejected since the competition is so fierce. They thank their lucky stars that someone allows them to rent a place.

that means the property is underpriced

  

I'd like to see you set the rent for a property in Portland.

I'm sure you'd get it 100% exactly correct... 

  There's a difference between getting 2-3 qualified applicants at the same time and what I responded to: " Around here people expect to be rejected since the competition is so fierce. They thank their lucky stars that someone allows them to rent a place."

MOreover , if the market is so hot, then you can always slightly overprice and then lower 

rated:
king0fSpades said:   Landlord, accepting multiple applications, picking the strongest.  Let say all of the candidates qualify and meet minimum requirements.  I accept the one with highest take home income and credit score.  Is this legal to reject the rest even though they all qualify?  What do the tell them in the rejection letter?
Do you charge application fee? Do you plan on refunding those?

Edit: nvm, I saw you answered that already. How would that work if you used mysmartmove.com and asked tenants to pay TransUnion directly. Would you just refund cash?

rated:
Powza said:   
king0fSpades said:   Landlord, accepting multiple applications, picking the strongest.  Let say all of the candidates qualify and meet minimum requirements.  I accept the one with highest take home income and credit score.  Is this legal to reject the rest even though they all qualify?  What do the tell them in the rejection letter?
Do you charge application fee? Do you plan on refunding those?

Edit: nvm, I saw you answered that already. How would that work if you used mysmartmove.com and asked tenants to pay TransUnion directly. Would you just refund cash?

  I use mysmartmove and I cut checks to qualified applicants I have to reject

rated:
snnistle said:   
king0fSpades said:   
People take rejections personally.   

  
Use that to your advantage.  In the rejection letter to those you don't want to rent to, don't give them any hope for renting in the future.  For those you would like as tenants, be sympathetic, and pour it on thick.  Sorry, the property was rented to another interested party.  However, if it falls through, I will definitely contact you, as you are the kind of renter I am seeking.  Blah, blah, blah...  Or, if you have other rental properties, tell them about them and that you would welcome the opportunity to show them something similar...

  

And make 100% sure that none of the people you reject with no hope are not in a protected class (minorities, women, families, disabilities, old, etc... IOW 90% of people)   because  you might be giving evidence of possible illegal discrimination on your part.

 

rated:
Here's what I would do:

1. State app. fee is NON-REFUNDABLE on app (in bold letters above signature line).

2. If you own multiple properties, also state that qualified applicants will NOT need to pay another app. fee if applying for a different property within 90 days.

3. State on app (in bold letters) that property might receive apps. from many qualified people. In such a case, each qualified applicant will get to submit a sealed bid. The sealed bid is to state a max. $ amount and a max. duration (limited to whatever lawful duration is in your area). For example, "I will pay $2k/month for 24 months." Rental will go to qualified applicant offering landlord most revenue.

rated:
jerosen said:   
king0fSpades said:   
...  People take rejections personally.   

  
I think thats more the exception.

I have yet to see a tenant take it personally.  Some get disappointed but thats about it.    I've had people flip out a lot worse over my dog policy.


 

  For the first round of applications, I rejected all of them.  They lied on one thing or the other.  One lady's dad called, threatened me, and called me a racist for no reason.

rated:
king0fSpades said:   
...
 

  For the first round of applications, I rejected all of them.  They lied on one thing or the other.  One lady's dad called, threatened me, and called me a racist for no reason.

  
just curious : 

What did they lie about and how'd you catch them? 

Did you tell them you were denying their application for lying?    I could see people taking that personal, getting defensive.

 

rated:
rufflesinc said:   
jerosen said:   
rufflesinc said:   
... 
that means the property is underpriced

  

I'd like to see you set the rent for a property in Portland.

I'm sure you'd get it 100% exactly correct... 

  There's a difference between getting 2-3 qualified applicants at the same time and what I responded to: " Around here people expect to be rejected since the competition is so fierce. They thank their lucky stars that someone allows them to rent a place."

MOreover , if the market is so hot, then you can always slightly overprice and then lower 

  

Portland is a market where competition has been fierce such that renters have a hard time finding a place.

Say you jack the rent up $100 and then you still get 50 people calling...  but you don't know what  % have actual interest since some are just shotgunning applications at every vacancy.

 

rated:
jerosen said:   
king0fSpades said:   
...
  For the first round of applications, I rejected all of them.  They lied on one thing or the other.  One lady's dad called, threatened me, and called me a racist for no reason.

  
just curious : 

What did they lie about and how'd you catch them? 

Did you tell them you were denying their application for lying?    I could see people taking that personal, getting defensive.

 

  Lied about income.  (Only half by paystubs).  2)Didn't give a WRITTEN  notice to their landlord when they told me they have.  (Probably texted the landlord and the landlord saw my other FW thread

rated:
fufihope said:   
3. State on app (in bold letters) that property might receive apps. from many qualified people. In such a case, each qualified applicant will get to submit a sealed bid. The sealed bid is to state a max. $ amount and a max. duration (limited to whatever lawful duration is in your area). For example, "I will pay $2k/month for 24 months." Rental will go to qualified applicant offering landlord most revenue.

  interesting

rated:
fufihope said:   Here's what I would do:

1. State app. fee is NON-REFUNDABLE on app (in bold letters above signature line).

2. If you own multiple properties, also state that qualified applicants will NOT need to pay another app. fee if applying for a different property within 90 days.
 

Step 3: accept multiple applications and deny everyone for whatever reason.
Step 4: ???
Step 5: Profit!

rated:
jerosen said:   
rufflesinc said:   
jerosen said:   
rufflesinc said:   
...
that means the property is underpriced

  

I'd like to see you set the rent for a property in Portland.

I'm sure you'd get it 100% exactly correct... 

  There's a difference between getting 2-3 qualified applicants at the same time and what I responded to: " Around here people expect to be rejected since the competition is so fierce. They thank their lucky stars that someone allows them to rent a place."

MOreover , if the market is so hot, then you can always slightly overprice and then lower 

  

Portland is a market where competition has been fierce such that renters have a hard time finding a place.

Say you jack the rent up $100 and then you still get 50 people calling...  but you don't know what  % have actual interest since some are just shotgunning applications at every vacancy.

 

  In SF bay area (most of it), if place is listed for rent .... people (with good everything) in order to get the place will bid $100, $200, $300, (per month) more than the listed rent ... but still get rejected because someone else bid more than them.

rated:
For mine I will accept applications and the application fee (the pay the fee to me and I run the check through a third party) but I disclose if I have any other applications pending. I use a simple first-in, first-offer process once I find a candidate that meets the qualification requirements I've set and by first-in I mean when you submit a completed application with the application fee, you are now in-line. I'm in a rural area that is not affluent so most of my applicantw have sub-550 credit scores but make enough income exceed the 28% housing to gross income threshold I set. Fortunately, the low scores allow me significant 'grey-area' to push a candidate I like more to the front of the pack. Admittedly, I generally can't base my decision solely on score and income level so I tend to have to do a lot more due-diligence in my screenings to read the complete credit report and review references to get the whole story. I also require all adults in the house to submit an application and fee with background check and screening. That tends to make qualifying them easier and makes it easier later if things go south if I have multiple people to go after.

All else being equal, for the ones that don't make the cut, I just state in general terms that they didn't meet our the qualification requirements but I do not provide details unless explicitly asked. If I had actually run my credit and background checks and the applicant was qualified but there was someone in front of them that was approved and accepted, I just state that the application that was in-line in front of them met the qualifications and accept the lease offer. Generally I find that when I explain the first-in, first-offer process, every candidate agrees that is the most fair way to do it.

rated:
Income, credit score in the same ball park, one party shows up in a clean car, talk politely, other shows up in a trashy car, books, cloth hangers in the car, wearing dirty clothes. They also talk rudely. Sound like trouble makers.

I take both applications, run the reports of the first party and approve them.

I never cash check for the 2nd party and tell them, like suggested above,"thank you for your interest in trying to rent this property. Unfortunately it has been rented to someone else."

Anything illegal doing this? Probably not.

rated:
king0fSpades said:   Income, credit score in the same ball park, one party shows up in a clean car, talk politely, other shows up in a trashy car, books, cloth hangers in the car, wearing dirty clothes. They also talked rudely. Sound like trouble makers.

I take both applications, run the reports of the first party and approve them.

I never cashed check for the 2nd party and tell them, like suggested above,"thank you for your interest in trying to rent this property. Unfortunately it has been rented to someone else."

Anything illegal doing this?

  
If the trashy applicant is a member of a protected class, there's always a chance they could claim discrimination if the applicant you chose is of a privileged class. I'm sure it's not the easiest thing to prove, so it probably doesn't happen to often. As long as you don't give them a reason to believe they were discriminated against, you're probably fine.

rated:
meade18 said:   king0fSpades said:   Income, credit score in the same ball park, one party shows up in a clean car, talk politely, other shows up in a trashy car, books, cloth hangers in the car, wearing dirty clothes. They also talked rudely. Sound like trouble makers.

I take both applications, run the reports of the first party and approve them.

I never cashed check for the 2nd party and tell them, like suggested above,"thank you for your interest in trying to rent this property. Unfortunately it has been rented to someone else."

Anything illegal doing this?
If the trashy applicant is a member of a protected class, there's always a chance they could claim discrimination if the applicant you chose is of a privileged class. I'm sure it's not the easiest thing to prove, so it probably doesn't happen to often. As long as you don't give them a reason to believe they were discriminated against, you're probably fine.
Right. A single action is not illegal by itself. Someone would have to demonstrate a pattern of discrimination for it to become a problem. Best practices are to have written tenant qualification criteria and keep a record (for at least 10 years) about why each candidate was not accepted.

You should look for a legal guide for landlords specific to your state. For example, this has a whole chapter on discrimination. I would expect most landlording or property management books to talk about rejecting applicants.

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017