Tip of the Week
Here’s Why:
Landlords should respond to denied applicants because it is considered a professional courtesy, helps prevent potential discrimination claims, and is often legally required under the Fair Credit Reporting Act (FCRA) - especially if the denial was based on information from a credit report, which necessitates providing a detailed explanation of the reasons for rejection in an "adverse action notice."
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Key reasons to respond to denied applicants:
If a landlord uses information from a credit report to deny an applicant, they must provide a written explanation outlining the specific reasons for denial, including details about the credit reporting agency used.
- Transparency and fairness:
Explaining the reasons for denial can help applicants understand why they were not chosen and address any potential issues on their credit report or rental history.
- Discrimination prevention:
Responding to all applicants consistently can help avoid accusations of discrimination based on protected characteristics.
A prompt and professional response to denied applicants can leave a positive impression, even if they were not selected.
What should a landlord include in a denial response:
- Clear statement of denial:
Inform the applicant that their application was not approved.
Specify the specific factors that led to the decision, such as low credit score, insufficient income, or poor rental history.
If using a credit report, mention the credit reporting agency and provide contact information for disputing any inaccuracies.
Inform the applicant of their right to review their credit report and dispute any errors.
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Have You Listened to This Podcast?
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Analyzing Credit Reports for Tenant Selection
The process of vetting a prospective tenant is likely one of the most important tasks a landlord has.
Think about it. The person you place to live in your unit needs to have personal and financial characteristics that meet your rental criteria.
For us that means they need to have two positive referrals from previous landlords, a credit score of 725 or above, and net income that is at least 2.5 times the rental amount. But that’s just our qualifiers.
Because income is such an important part of the investigation process for this prospective tenant, we spend a lot of time looking at their credit report.
Sure, it’s likely that if they have our required score they will qualify, but we look deeper into the report to look at debt and if after paying that debt, will they have enough money to still pay rent to us?
In this episode we discuss what we look for when reading someone’s credit report, because it’s a whole lot more than that one little FICO score.
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Click HERE to view show notes with links to special offers and promotions.
Listen to Our Podcast:
Favorite Landlord Products
Products we use to make our rental property business more efficient and safe. They make our life easier so we are sharing them with our readers to help you too!
50 Page, Weekly TO DO Pad
We are tangible people, which means we work better and feel more successful when we work off a calendar or a "To Do" list that is on paper and not on our phone or electronic devices. Don't get us wrong, we have a ton of lists on our phones. But this weekly calendar is one where Kevin and I sit down together and go over our upcoming week. We discuss appointments, travel, errands, and tasks we have set a goal to complete.
IT FEELS SO GOOD TO US when we scratch an item out when it’s completed! This pad comes with 50 pages. One page for each week with 6 days (5 weekdays plus one for the weekend), plus a list of priorities to complete if not scheduled for a particular day. Each weekend has 10 spaces to write in what is planned for that day. We created this video to show how we use it and have sold many to our landlord followers. We hope you like it too.
Details: 50 Page Weekly To Do List Planner Notepad. Weekly to-do list notepads that house a checklist, a top priority, a low priority, and a follow-up section, along with sections to make notes or appointments on Monday through Sunday. 50 Page Notepad. The perfect size, at 11 X 8.5-inch A4 notepad. Quality 70-pound smooth white paper with chipboard backing. Clean and elegant-looking checklist weekly task pad. $13.99
Available in 1/2 sheet size (2 Pack)
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Good Landlord Reads
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A New Year Reminder: Strengthening Policies, Procedures, and Written Communication in Property Management
As the new year begins, property management professionals have the opportunity to reflect on foundational practices that ensure both compliance and operational excellence. Among these, few aspects are as critical as robust fair housing policies, well-defined procedures, and professional written communication. These elements not only safeguard against legal risks but also foster trust and professionalism in interactions with residents, prospects, and team members. This article explores the essential role of policies and written responses, offering a timely reminder to recalibrate for the year ahead.
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What to Do When Your Tenant Stops Paying Rent
A common question from Landlords is, what do I do when Tenants stop paying rent? It’s a frustrating issue for many Landlords and a top concern for investors considering getting started with long-term rentals.
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Build New or Renovate? A NY Expert Weighs In
As cities grow and evolve, so do challenges such as rising land costs, environmental concerns and the pressure to meet modern lifestyle needs. For real estate executives, these problems come down to one key question: Should you build from the ground up or revamp existing structures?
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Get on the waitlist today!
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Upcoming Course: Place Your Ideal Tenant, A Comprehensive Guide from Marketing to Move In
This is a detailed course on the best practices for
- Marketing your vacancy to attract the best tenants
- The process of unit showings and accepting applications
- Vetting the applicant and background checks
- Accepting/denying applications
- A Lease & Addendum Blueprint
- Onboarding your new tenant and the move in walkthrough
Have you ever worried that you could be doing more to ensure the tenants you place are ideal for your rental property?
There are specific steps landlords must take to feel confident they have done everything possible to prevent a nightmare tenant from living in their unit. We are sharing our tenant screening strategy, giving you those steps and more to help you build a professional, organized, and communicative landlord tenant relationship that hopefully, will last for many renewals.
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The Best Way to Deny a Rental Application
Going through the process of finding a valuable new tenant for your rental property is no fun. However, just as there are proper steps to follow when vetting a prospective tenant, there are processes and legal requirements one must abide by when it comes to denying an application. Read on to learn the best ways to deny a rental application.
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Offering Tenants Incentives Upon Lease Renewal
Offering our tenants some incentive upon lease renewal has become a more explored policy in the last few years. However, landlords sit on both sides of the fence on this policy. Some landlords who see themselves to be fair, responsible, and kind to their tenants believe that offering an incentive to tenants as a bonus upon renewing the lease is a waste of time and money. Instead, they feel the tenant should appreciate their relationship and be grateful they are not dealing with a nightmare landlord. They even will go so far as to believe that if the tenant were to move out, it would be an opportunity for them to raise the rent higher. That certainly can be true in rent-controlled areas, but a view of “take it or leave it” is not uncommon for many landlords.
The other school of thought on incentives in exchange for lease renewals is...
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Your Landlord Resource Periodic Inspection Form: Single Family Home
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Property Manager Questionnaire
We created a 14-Page questionnaire for landlords to use when vetting a property manager!
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