If your competition does not charge, then maybe you should not. But do not run the credit/background check until you have a completed application and a holding deposit on the unit. Since you are eating the cost of the check I might even have them sign the lease and then have a clause in the lease that it is contingent on applicaiton approval. I would want money and a signed commitment before you throw away $30 on every window shopper.
I run my checks myself and it takes me about 1 hour. I absolutely verify that they were the tenant at their prior address on the application and I absolutely verify that the landlord on their application is their landlord. Have gotten so good at it that it is a bit of a problem as 60% of my applicants get rejected for lieing about their previous rental history.
So yes, I have to return the holding deposit quite a bit. But it was even more frustrating when I would do all the checking only to find out that they no longer wanted the place or that they really did not have the move in money. When someone gives me $400 with the application I know that they are serious about wanting to move in or I am going to be well compensated for my time.
bgrossnickle, but if they decide not to take the place after you do the background check you have to return the deposit so how are you "well compensated for your time"? I do agree, however, that if they give you the deposit at the time they give you the application, indications are they are serious.
Let me add that my method only allows me to work on one applicant at a time. I do not use the "another more qualified applicant came alont". I tell my applicants that once they give me the holding deposit I am working only with them and either I approve them or I do not approve them. Most professional property managers do work on applicants one at a time. You can get yourself into a fair housing nightmare if the person you turn away is in a protected class and the one you took was not in a protected class. You should have quantifiable selection criteria that you can show for each rejected applicant why they were rejected.
Below is my information sheet that I leave at the property, along with blank applications, for each prospective tenant.
The 3 bedroom, 2 bath, half duplex located at 147 S Lakeview Dr, Longwood FL is available now.
Rental Application
All persons over 18 years of age who will reside at the property must complete a Rental Application. Each application must be legible, complete, and include a photocopy of the applicant’s driver’s license. Incomplete Rental Applications will not be processed. Applications are normally approved or rejected within two days.
Processing Fee and Holding Deposit
The Rental Application(s) must be accompanied with a non-refundable Processing Fee of $30 for each adult and a Holding Deposit of $500. Funds must be in cash, money order, or cashiers check. The Processing Fee is non-refundable. The Holding Deposit is refunded if the application is denied. If the application is approved, the Holding Deposit is credited toward the security deposit upon signing the lease. If the application is approved but the lease is not signed by the agreed upon date, the Holding Deposit is retained to compensate for loss of rent.
Signing the Lease and Start of the Lease
Unless otherwise approved, the lease must be signed and the lease must begin within two weeks of the Rental Application approval.
Rent and Funds required to move in
The rent for the house is $750 a month with an $850 security deposit. The first month rent is prorated so that rent is always due on the 1st. The prorated first months rent + security deposit – holding deposit are required to receive keys and move-in. Funds required for move-in must be in cash, money order, or cashiers check.
Tenant Criteria: (1) Credit Check (2) Rental History (3) Income
Credit checks are run on all applicants. You must have decent credit. Generally, a FICO credit score of at least 580 is required. But the credit score can be adjusted as all negative medical credit and anything prior to five years ago will be disregarded. No credit history can be regarded as good credit.
You must have good rental history or good mortgage payment history. Rental history will be verified - so PLEASE do not falsify your rental history. Rental applications are verified against a national database that lists all previous and current addresses for each applicant and lists each property owner name and property owner phone number. If you falsify rental history you will waste money and I will waste time. So, PLEASE do not falsify rental history and PLEASE do tell your current landlord that you are moving out.
The combined monthly gross household income (income before taxes or other deductions) must be at least three times the rent. Income will be verified. For example - if the rent is $750 a month, the gross household income must be at least $2,250 (750 x 3 = 2250) a month.
If your credit check, rental history, or income does not meet the necessary criteria, then a double security deposit may be required.
Pets
Approved pets are allowed with a one time $400 non refundable pet deposit.
Call me with any questions or when you have a completed Rental Application for each adult (including the photocopy of driver’s license) along with the Processing Fee(s) and Holding Deposit in cash, money order, or cashiers check.
Right. In CA, to my knowledge, no one takes a deposit at time of application.
But then, according to Brenda, I am not a professional property manager since I work on multiple applicants at one time
Quite honestly, in some cases, my clients only have paid me to place a tenant but they are going to manage the property. Therefore, I feel obligated to have a few options for them to chose from ... if possible.
hello been gone a while anyway this topic is just what i was looking for since i aquired my properties with tenants already in them i never had to do a background check but what i want to know is how do i go about doing a credit chek and background check on a tenant and how much would it cost me.
If your competition does not charge, then maybe you should not. But do not run the credit/background check until you have a completed application and a holding deposit on the unit. Since you are eating the cost of the check I might even have them sign the lease and then have a clause in the lease that it is contingent on applicaiton approval. I would want money and a signed commitment before you throw away $30 on every window shopper.
I run my checks myself and it takes me about 1 hour. I absolutely verify that they were the tenant at their prior address on the application and I absolutely verify that the landlord on their application is their landlord. Have gotten so good at it that it is a bit of a problem as 60% of my applicants get rejected for lieing about their previous rental history.
So yes, I have to return the holding deposit quite a bit. But it was even more frustrating when I would do all the checking only to find out that they no longer wanted the place or that they really did not have the move in money. When someone gives me $400 with the application I know that they are serious about wanting to move in or I am going to be well compensated for my time.
bgrossnickle, but if they decide not to take the place after you do the background check you have to return the deposit so how are you "well compensated for your time"? I do agree, however, that if they give you the deposit at the time they give you the application, indications are they are serious.
Let me add that my method only allows me to work on one applicant at a time. I do not use the "another more qualified applicant came alont". I tell my applicants that once they give me the holding deposit I am working only with them and either I approve them or I do not approve them. Most professional property managers do work on applicants one at a time. You can get yourself into a fair housing nightmare if the person you turn away is in a protected class and the one you took was not in a protected class. You should have quantifiable selection criteria that you can show for each rejected applicant why they were rejected.
Below is my information sheet that I leave at the property, along with blank applications, for each prospective tenant.
--------------------------------------------------
The 3 bedroom, 2 bath, half duplex located at 147 S Lakeview Dr, Longwood FL is available now.
Rental Application
All persons over 18 years of age who will reside at the property must complete a Rental Application. Each application must be legible, complete, and include a photocopy of the applicant’s driver’s license. Incomplete Rental Applications will not be processed. Applications are normally approved or rejected within two days.
Processing Fee and Holding Deposit
The Rental Application(s) must be accompanied with a non-refundable Processing Fee of $30 for each adult and a Holding Deposit of $500. Funds must be in cash, money order, or cashiers check. The Processing Fee is non-refundable. The Holding Deposit is refunded if the application is denied. If the application is approved, the Holding Deposit is credited toward the security deposit upon signing the lease. If the application is approved but the lease is not signed by the agreed upon date, the Holding Deposit is retained to compensate for loss of rent.
Signing the Lease and Start of the Lease
Unless otherwise approved, the lease must be signed and the lease must begin within two weeks of the Rental Application approval.
Rent and Funds required to move in
The rent for the house is $750 a month with an $850 security deposit. The first month rent is prorated so that rent is always due on the 1st. The prorated first months rent + security deposit – holding deposit are required to receive keys and move-in. Funds required for move-in must be in cash, money order, or cashiers check.
Tenant Criteria: (1) Credit Check (2) Rental History (3) Income
Credit checks are run on all applicants. You must have decent credit. Generally, a FICO credit score of at least 580 is required. But the credit score can be adjusted as all negative medical credit and anything prior to five years ago will be disregarded. No credit history can be regarded as good credit.
You must have good rental history or good mortgage payment history. Rental history will be verified - so PLEASE do not falsify your rental history. Rental applications are verified against a national database that lists all previous and current addresses for each applicant and lists each property owner name and property owner phone number. If you falsify rental history you will waste money and I will waste time. So, PLEASE do not falsify rental history and PLEASE do tell your current landlord that you are moving out.
The combined monthly gross household income (income before taxes or other deductions) must be at least three times the rent. Income will be verified. For example - if the rent is $750 a month, the gross household income must be at least $2,250 (750 x 3 = 2250) a month.
If your credit check, rental history, or income does not meet the necessary criteria, then a double security deposit may be required.
Pets
Approved pets are allowed with a one time $400 non refundable pet deposit.
Call me with any questions or when you have a completed Rental Application for each adult (including the photocopy of driver’s license) along with the Processing Fee(s) and Holding Deposit in cash, money order, or cashiers check.
Brenda Grossnickle
407-999-9999 Cell
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Right. In CA, to my knowledge, no one takes a deposit at time of application.
But then, according to Brenda, I am not a professional property manager since I work on multiple applicants at one time
Quite honestly, in some cases, my clients only have paid me to place a tenant but they are going to manage the property. Therefore, I feel obligated to have a few options for them to chose from ... if possible.
hello been gone a while anyway this topic is just what i was looking for since i aquired my properties with tenants already in them i never had to do a background check but what i want to know is how do i go about doing a credit chek and background check on a tenant and how much would it cost me.