QLD Leasing Manager Can't Close

So we had this property advertised for rental with very strong market interest. A week before the first open, leasing agent locked in a tenant and spoke very highly of them. They cancelled the open as she was supposed to move in within a week and asked us for a Google review for this great outcome.

Early next week, I am informed that tenant had pulled out before signing the lease for some reason. However they had received another promising application from someone who was happy to move in just a week after first tenant was supposed to move in so we were not too unhappy and approved the application. They took the credit again and congratulated us on the outcome which we were pleased with.

Fast forward this morning, tenant 2 has pulled out as well and as usual no paperwork had been signed yet. They still have other applications but it's quite frustrating to see tenants pulling out.

I have a feeling that leasing manager is taking too long to process their applications and tenants end up signing somewhere else. He also told me that a similar thing had happened to him for another property so clearly there is some issue with his approach.

What would you do if you were in this situation?

 

I've had this situation as a property manager. Its generally caused by the property being priced too high, so people are using it as a backup option - ie being accepted at first preference and therefore not needing yours anymore.

Big no no though, is cancelling other inspections until locked in. If I write to someone to say they've been accepted, I dont cancel the inspection until the accepted one actually commits.

Having a faster application process certainly helps. Our application program automatically emails all the references while the tenant is filling in the form, so quite often by time I open it up the references responses are already attached.

 

Thanks. I thought about this but in first case tenant offered $50 more than asking rent as they really wanted the place and 2nd tenant wanted to lock in 24 months which we agreed.

Is it normal to do all the checks without holding deposit?

 

If they're offering more they're probably desperate (either they're not very good or the market is crazy). Its odd that they couldnt get locked in - maybe that was a speed issue like you mention.

Of course, dont want to accept someone who wouldnt pass the checks would you?

 

Totally anecdotal, but in the rare occasion that we have someone pull out.... more often than not a second group pulls out too!? No idea why, probably just coincidence.

I've also noticed a bit more of it lately- the top quality tenants are stressing as much as everyone else so they're applying for every house, often well above asking rent, and then realizing they're getting approved for more than one. It does help to process and respond faster, but still sometimes unavoidable.

It can also be improved with better processes- tenants are expected to lock in the property with a deposit immediately (i.e. same day). If they don't, you can generally assume there will be a problem. By extension, you never ever ever ever cancel viewings (and/or take advertising down) until they have paid consideration.

 

I think it was a mix of tenants with multiple applications and the agent taking too long to process applications. I gave him slow processing feedback on Monday and he sent me a signed lease at $1000pw first thing on Tuesday. Overall just a week lost but still rented out at above asking price and I am quite happy with how it went in the end. Continuous communication is the key no matter how much rental demand is out there!