When you own rental property, finding an approved applicant is job #1.
Hey everybody. Alex Smith here from the evernest office in Chattanooga. Finding that approved applicant to rent your house is extremely important.
This is another installment of Questions Owners Ask. And today’s question is:
A popular question that frequently comes up from rental property owners is how many applications does it take for me to get an approved applicant? We’ve found that the answer is similar to how many showings it will take to get an application.
In this article, we will provide you with the answer to this pivotal question. We will also take a look at the rental application process to gain a better understanding of what the timeline looks like.
We’ve found that, on average, it takes somewhere between two or three applications to find your first approved applicant. Some houses or rental properties take fewer while others take more.
It all comes down to the quality of the applicant that you are getting. And, like showings, all you need is that one person to come through and meet your qualifications.
Finding an approved applicant is just the beginning of the process. Let’s take a closer look at the rental application process time to better understand your timeline as a landlord or homeowner.
After a successful showing, ideally, your applicant will submit their application right away. In the best-case scenario, the applicant will submit all supporting documents with their application, including:
You can help expedite the process by letting any applicants know what extra resources you require at the showing. You could even provide this information before the showing in hopes of the applicant bringing this information with them.
Applicants often feel a bit in the dark about the review process. You can let them know that during this time, you will be reviewing their application. This step will determine whether they are approved once you receive their application.
This process generally begins with a thorough review of the applicant’s credit report and rental history. As long as their credit score and rental history meet your requirements, you will proceed through the review process.
Verifying Employment and Income
Next, you will verify the applicant’s current employment status. This step will ensure they have the proper income or financial means to meet your approval requirements. These minimums can range anywhere from one to four times monthly rent in gross monthly income or even up to 50 times the monthly rent in annual income.
After completing your review process of the application, you will determine whether to approve or deny the applicant. Typically, this will take you around one to three business days to complete.
As a landlord or homeowner, you may be able to pull all the necessary information quickly and provide a response within a matter of hours. But, if you opt to take a more thorough approach, you can use a third party to help with applications that may slow things down.
Once you have determined whether the applicant is approved, you are responsible for reaching out to the applicant and let them know. If they have been approved, you can use this time to provide them with next step information, including:
Even if the applicant has been denied, you should still reach out to them and let them know why you decided to continue in another direction.
Several different factors can affect applications. Some of these factors include rental history, credit report, employment, or income.
Reviewing rental history is a large portion of the application process that applicants might overlook. As a general rule of thumb, if you can reach out to prior landlords, this information can help give you an idea of what type of tenant the applicant truly is.
As much as both landlords and applicants want to speed up the approval process as much as possible, delays are often encountered. Here are a few of the common causes of delays.
One of the leading causes of delays in the approval process is a failure on the applicant’s behalf to complete the application. The applicant might have forgotten to fill out a piece of information on the application or attach any required documentation. Either way, tracking them down to get what you need can cause a delay in the entire process.
Avoid receiving incomplete applications by informing your applicants what additional information you require. Provide a detailed list during the showing and let them know that you can be made available to answer any questions before submitting, as needed.
As a landlord or homeowner, you can filter through applications at your speed, allowing you to expedite the process as much as you would like. Alternatively, if you work through an agent or a management company, this can slow the process. They will act as a middleman between you and the applicants making things move slightly slower.
Another typical delay in the approval process comes up with the credit check. You might consider any of the following as red flags during the application process:
If you run into any of these situations, you can request additional information from the applicant. This option helps enable applicants the opportunity to prove they have the financial means to pay rent in full and on time.
So, how many applications does it take for me to get an approved applicant? On average, we’ve found it takes around two or three applications. As a landlord or homeowner, it’s essential to keep in mind the applicants’ perspective during the process. Understanding helps expedite the rental application process and cut the amount of time your property is vacant.
Hope this was helpful. Thanks.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.