Tenant Application-Red Flags
17 October, 2007
(14) Comment
A prospective tenant calls you and wants to see that 3 bedroom apartment that you have for rent. What types of “red flags” should you be watching and listening for as you talk to the tenant, show them the unit, and process their application?
- When prospective tenants are late to the showing appointment and don’t have a valid reason, I am immediately skeptical
. - If you are unable to verify their employment, income, or rental history, be concerned. I had a very interesting discussion with a prospective tenant when I told him I was going to call his current landlord. It went something like this:
- Me: “I see on your application you didn’t list your landlord’s phone number or last name”
- Him: “I don’t have the phone number for my landlord”
- Me: “How do you call him if something needs to be fixed”
- Him: “He never fixes it anyway”
- Me: “What is his last name”
- Him: “I am not sure”
- Me: “Where do you send the rent?”
- Him: “He stops by around the 5th of the month and I pay him”
- Me: “Do you know where he lives”
- Him: “No”
- …At this point, I was convinced he was lying to me, did not want me to call his landlord, or simply irresponsible. All traits I don’t need in a tenant.
- I will often call the prospective tenant once or twice on the phone to see how much noise is going on the in background. I am amazed how often I can’t even hear the prospect on the other end of the phone because of the yelling and TV blaring! They are most likely going to bring this chaos to your apartment and disturb the neighbors.
- How a tenant carries themselves, dresses, and what kind of car they drive also gives me some clues as to their personality. Now I have been surprised by a jean wearing professional that drove a BMW, rented a new townhouse I have, and lived like a pack of dogs, but I am often right!
- Because I charge $25 as an application fee, I will occasionally get a response “I won’t have the $25 until next Friday [6 days from now].” I do rent in some lower-income neighborhoods, but if you were planning to rent an apartment and 90% of landlords in Minneapolis require an application fee, shouldn’t you have that money saved up?
- I am often receive many calls on my apartment ads during the last 5 days of the month. I have to guess that they simply woke up on the 25th of the month and realized they need to be out of their current apartment on the 30th and then decided they should go and find a new place to live. As enticing as it is to take one of these tenants instead of having an open apartment, you need to screen them extra carefully.
- Occasionally, when I am concerned about how a tenant may treat my apartment, I will actually require an on-site inspection of their current apartment. How clean it is (especially the kitchen), tells me a lot. If I see lots of grease on the stove and bathroom is nasty, I pass on them.
- When processing their application, if they “forgot” to tell me anything about anything derogatory on their application, I am concerned about what else they are hiding.
- Constant moving of apartments or job is also concerning as it shows instability or problems.
Some of these red flags can be identified on the phone prior to booking the appointment. Save your appointments for the people that have passed your initial screen. With some observations of your prospective tenant and some simple “gut checks”, you can often weed out potential problem tenants before they ever cross your threshold.
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I just had one of those applicants wanting to be in by the 15th. I can’t tell you how hard it was not to be blinded by green as I viewed a terrible credit report telling the tale of a house of cards waiting to fall apart. In my mind I tried to make it work, but in the end after re-reading this post I decided to do what is almost certainly the correct decision and deny the application.
I had to chuckle when I read your comment. I was not laughing at you, but at myself. I have had those internal voices trying to talk me into making a bad decision more than a few times!
It is tough when you have a vacant unit and you see money just pouring out. You want to just stop the bleeding and get anyone in there.
90% of the time when I listen to the voices, I live to regret it! Keep going, you will find your tenant. Check out the post on Reverse Prospecting and the one on advertising.
With this article i see a sever problem because there are alot of low income families out there that have credit problems. The main reason for the high homeless rate in mineesota has been proven to be because of the same reasons that alot of you deny applications and how those of us who provide low income housing are actually making more money then those that have no trust and want to play hard ball. Another thing that is wrong with the post is that not all landlords require an application fee only about 35% of them do and 9 times out of 10 those are the landlords that keep loosing money
I am running a business, not a charity. I did not cause these potential tenants to have bad credit. They did it themselves. They therefore are seeing the consequences of their choices.
The application fee is to offset the money that I pay to the tenant screening company.
I certainly hope you screen your tenants before you charge them a 25 dollar application fee that way they’re not wasting their cash. Also, just by the way you write and screen your tenants I wouldn’t doubt you been to small claims court every month because you cashed the security deposits and didn’t tell them it was non-refundable.I can understand the whole not allowing section 8 housing, but I hope for the sake of your tenants the rent doesn’t go up every time their month to month. Have a nice day.
I am actually pretty lenient on the app fee. The only time I keep the $25 is when the tenant is approved and decides not to rent the apartment or if they tell me their record is clean and they have a problem on their record (that they should have known about-convictions, evictions, etc). Seems like they are just wasting my time.
If I deny them because they don’t a strong enough credit or other issues, but they were up front with me, I give the money back. I am not making money on taking applications. I pay that entire $25 to the screening company. I have never been to small claims court.
Not sure what you mean about month to month and section 8.
Have you checked out http://nopaytenants.com/
Thanks for the tips. I agree how tenants carries themselves and how they have maintained their previous landlords house is very important. As it will gives us an overview of how they will maintain our property