LeadSimple Blog
As property manager there are many things to consider when looking to fill a vacant property. That’s why it is critical to use a rigorous rental application process with defined steps receiving, verifying, and accepting tenant applications. We've come up with a straightforward template for a rental application process which is easy to use, yet thorough enough to get you started.
As a property manager there are many things to consider when looking to fill a vacant property: Who is the right tenant? How fast can you find one? How to make sure you place a great tenant that will respect the lease and take care of the rental? How to comply with the Fair Housing rules while still choosing the best tenant for the property?
That’s why it is critical to use a rigorous rental application process with defined steps receiving, verifying, and accepting tenant applications. We've come up with a straightforward template for a rental application process which is easy to use, yet thorough enough to get you started. In order to maximize your efficiency and processing speed, you will need to design the process in a formal way, either by means of a checklist, or better, by using a process software, which will automate most of the tasks and tracking that you and your property management team tracks manually. We’ve underlined the most important steps as they would be displayed in the LeadSimple process tool and we’ve accompanied them by relevant screenshots. Nonetheless, you can still use the steps suggested in this article and create a manual checklist, if that fits your style better.
As you go through the process of vetting your tenants, finding a good tenant has become a faster and smoother process with the introduction of property management and process software packages, as many tools on the market offer in-built tenant screening addons. With that said, here are a few points you definitely want to tick in your rental application process for a property.
The rental application process means that you will need to run a background check and credit score check, prior to which you must receive the tenants consent.
Yet whether or not the tenant has been convicted of a crime, please make sure that you do not make this a reason why a tenant is not approved.
It’s also important to note that the rental background check you conduct must be uniform across all applicants to avoid violating any Fair Housing laws or discriminating against a tenant based on their race, sex, nationality, and more. This is also why some cities have regulated or banned criminal background checks in the rental process altogether.
In a nutshell, the credit score is used to determine how likely the prospective tenant is to pay the rent month after month. Are they a reliable person who always pays rent on time? The easiest way of doing this is to check credit scores.
A tenant’s credit history will show you their overall credit score, their current debts and payment history. Different factors in a tenant’s credit report need to be looked at, especially considering that a tenant’s credit score will show their reliability towards borrowing credit.
Most property managers would agree that a tenant's employment history is the key indicator of whether a tenant will be able to pay their rent every month, so you want to check the employment history. Beware that you must require permission to contact the applicant’s current employer to verify if the prospective tenant is currently employed.
Equally important in the screening process is obtaining the proof of income. You need to make sure that your applicant will be able to pay rent every month because at the end of the day, you are representing the interests of your landlord client.
Most property management companies will check pay stubs or tax returns to make sure a tenant is making at least three times the monthly rent. Should they fail to produce proof of their pay stub or tax returns, you will need to ask for proof of income or savings via bank statements or any other record that proves the tenant will be able to pay rent.
Not all applicants will own a pet, but be sure that the majority will, and you need to be prepared in case they want to move in with their favorite animal. There are many pet screening services available online, which let you assess if the animal has a history of misbehavior, or if it belongs to a breed that is considered dangerous. Beware that pet screening also applies to emotional/service pets.
It's highly encouraged that you request previous landlord references from applicants. What better way to find who the tenant really is, and whether they are a reasonable person than from their former landlord? At this point, you’ll be able to find out more information about the tenant’s past behavior, and filter down better from the pool of applicants.
First impressions can be deceiving, as such we must never judge a book by its cover. The screening process will give you hints as to how they would be once they are a full time tenant. That being said, here a few red flags to look out for:
Some of these signs can be tell signs you will definitely want to avoid, so best to start with an initial phone call in the screening process. Your ideal tenant will be polite, forthcoming with information and very respectful, just as much as you should be towards the tenant applicant.
Now that we’ve reviewed the most important aspects that you need to make sure to cover in any rental application process, let’s see how the process should be organized, and what stages it should contain.
You’ve marketed the property and tenant applications just started to come in. It’s time to review them, and collecting the required documents from each and every applicant is the first step in making sure that you choose the right fit for the rental property. It is very easy to set up this in LeadSimple, for instance, where you can design stages for every step, and add tasks and automated actions for each of the activities below.
No matter whether you're using a paper checklist or a software, you must make sure that you include all of the activities below.
DOCUMENTATION - Make sure that your team has at hand a list of the required documents that they need to check, and that they require them from the applicant. The following is a common, yet not exhaustive list of documents that most property managers ask for:
THE APPLICATION FORM AND FEE - Many property managers nowadays accept applications through online forms, which ease up the administrative work that their teams need to undertake. If you are using an online application form, now it’s the time to require your team to ask for it, and receive it fully completed from the applicant(s).
IMPORTANT!
Please remember that at every single step, it is most productive that you have sufficient information available for your team to understand what they need to do, in order to follow the process smoothly. It’s very easy to do so in LeadSimple, as the process tool allows you to write notes at all times, and useful descriptions for every single task at the stage level. As such, your team will never need to go back and check your policies, losing precious time in the process.
You’ve received one or more complete applications from tenants interested in the rental property, and now it’s time to process those and select the best fit. Here are the most important aspects you need to take into consideration while processing applications.
After processing all applications, you will be in a good position to assess which of them is the best fit for the rental, so you must go ahead and inform the applicants about the results.
After selecting the right fit for the rental, there are a few more steps to take care of before the move in, such as paying all the associated fees, and coordinating disbursements for all applicants that have not been accepted.
It may seem like a lot of work is involved in processing a rental application, which may seem like a headache, but is actually a critical tenant screening mechanism that will help ensure that the best possible tenant lands in your rental property. Although a prospective tenant might seem perfect during the showing, the rental lease application in itself provides a protective layer to draw out any red flags. Property management companies should make sure to do their due diligence and follow the rental application process in detail so as to find a great tenant who will treat your rental property with great care.
It’s easy to set up in LeadSimple, especially if you are looking for a user-friendly software system. LeadSimple will combine your CRM with great process modules whilst offering you support that integrates with property management softwares. Here are few benefits:
Leadsimple has built a CRM and process management system specifically for property managers. Why not start automating your business now?
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CEO | BetterWho
Sales doesn't have to be an afterthought, and your processes should be automated. With LeadSimple, you will have a seamless handoff between sales and service teams, and help you turn cold prospects into raving fans by delivering a great customer experience.
