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Rejecting tenants

Discussion in 'Property Management' started by beachgurl, 26th Apr, 2016.

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  1. beachgurl

    beachgurl Well-Known Member

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    For the property managers out there, is it normal process to advise a prospective tenant that their application is rejected prior to listing another open house inspection, or is there a lot of hedging bets in case no better applicants show on the next inspection and the applicant is kept in the dark? I know my local PM is doing this and with my property available for lease in a few weeks I'm not sure I'm a fan. Of course finding the best tenant is the priority but not if it means stringing people along in the process.
     
  2. thatbum

    thatbum Well-Known Member

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    As private landlord I've had further opens while there were pending applications.

    I don't think there's any issues, moral or otherwise with wanting to "hedge your bets" in that situation, as long as the delay isn't unreasonably long.

    In my situation, it was never more than 2-3 days.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Continue to advertise while application is pending in case your successful applicant pulls out. This also comes down to getting deal done quickly too - always ensure you advise someone they've been successful as soon as you can and arrange to get lease signed, money, keys etc so that they don't get snapped up by another landlord/PM. This way others aren't strung along either.

    Always advise unsuccessful applicants that they were unsuccessful too, its just good manners. 99% of PM's don't do this but it's very good practice as allows them to continue searching for their right property. In some cases they're perfectly fine, so you can get them into a different property.
     
    Last edited: 26th Apr, 2016
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  4. Sonamic

    Sonamic Well-Known Member

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    What @D.T. said.
    Also remember that prospective tenants sometimes have multiple Applications in at once too.
     
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  5. Nick Valsamis

    Nick Valsamis Well-Known Member

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    It will depend on the situation and the applicant. If the applicant isn't any good then it would be normal to reject them early on. If however the applicant is decent but you still want to do another inspection to see if you can get a better applicant then it would be necessary to stall the current applicant.

    This could also backfire if the decent applicant takes another property and you don't receive any other applicants with the next inspection. What the strategy will be really depends on the situation and this should all be communicated by the property manager to you so that you are aware of what is happening.
     
  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    It's not over till it's over. All applications are considered until it's leased.

    Then you can advise them that application is unsuccessful.
     
  7. neK

    neK Well-Known Member

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    As what has been stated above.
    However if the tenant is a flat out no, I would tell then in a day or so. Not straight away as it may seem too rude, but at least create the perception you've considered them (so they don't get upset and wreck your property out of spite)
     
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  8. DiligentPM

    DiligentPM Well-Known Member Business Member

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    The feedback is appropriate in relation to your question.

    We offer applicants updates on how applications are progressing as part of our candidate management business process. If candidates are not appropriate i.e. rental stress/insufficient income we ask for additional sources of income and share the reason for asking this question - often we work with the applicant to source a property within their financial capacity if deemed unsuccessful early on to not string them along. As other PMs have stated, provided applicants can afford the property (as per rental stress analysis and income sources); have good past histories of (1) paying rent on time; (2) looking after the property and (3) not demonstrate a pattern of break leases (note pattern) we advise applicants that each application shall be presented to the owner as per the order of applications received to provide a transparent process. Once the owner has undertaken the decision making process we advise unsuccessful applicants advising them of the strengths of their applications in addition to feedback about how to strengthen a future application. From our experience, some applicants self-elect out of the process through failing to furnish us with all required evidence of financial status/past rental history etc - this translates to a natural attrition process
     
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  9. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Until the lease has been signed and the bond has been paid, we continue to advertise and conduct open homes and private inspections. Even if approved, the prospective tenant can easily pull out after application (prior to signing lease and bond) and if you stop the inspections you could be left with higher vacancy if that happens.

    Having said that, your PM should have criteria by which they assess applications and if the prospective tenant meets this criteria then I understand what you're saying i.e. Why not take them? It can be a matter of timing as processing an application shouldn't take more than a few days provided information and references can be verified. If there's another inspection during this time then let it run or even if it's approved, let it run until the bond has been been paid and lease signed. Market dynamics will also play a part depending on the time of year and current vacancy rate in your area/suburb and how likely you or your PM believes there will be better applications.

    Although you should follow your PM's guidance, In the end it's up to you whether you accept an application.

    - Andrew
     
  10. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Same as the few above, until a lease is signed and rent/bond paid the property remains advertised with inspections booked in.