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Real Estate Investing Forums  |  Real Estate Investing  |  Rehabbing, Landlording Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas, motivatedceo)  |  Topic: "Read before applying" cover sheet on rental application? « previous next »
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Mr_Robin
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« on: November 14, 2008, 01:00:12 PM »

Does anyone use a  "READ THIS BEFORE APPLYING" cover sheet on your applications?   I'll be charging an application fee to cover credit, background etc of prospective tenants and want to be fair in telling them what I will reject for, before they waste my time and theirs applying. 

Here are samples of my requirements:
  • INCOME:  Minimum monthly net (Bring home) income of $XXXX.00. (Verified)
  • EVICTIONS:  No Evictions in last 5 years.
  • CRIMINAL:  No Felony convictions of any resident.  All convictions are required in application and will be considered on a case by case basis.
  • PETS:  Max of 2 pets allowed with $XXX.00 Non-refundable deposit.  No fish tanks over 10 gallons.


What other things should I list on my "Read This before applying" cover sheet?



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propertymanager
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« Reply #1 on: November 14, 2008, 09:18:23 PM »

I don't think that there is anything wrong with using the coversheet.  I explain the screening requirements to all applicants on the phone before I ever meet them.  After all, I don't want to waste my time meeting them if they won't qualify.  In addition, I don't want to meet any more dangerous felons than I have to.  If I do show them the rental, I then explain the screening requirements to them again before they fill out the application.  If they still apply and don't qualify, I keep their application fee.  I've gotten as many as 8 application fees before finding a tenant that was acceptable.

Mike
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« Reply #2 on: November 16, 2008, 07:44:27 PM »

First, I want to say that I explain requirements over the phone.  I do not want any scum bags applying for my properties if I'm just going to reject them.
YOU SHOULD ALWAYS HAVE PREPRINTED APPLICATION REQUIREMENTS, AND AN EXISTING PET POLICY.
This will keep criminals, scumbags and the owners of vicious and venomous pets away from your properties.
Cut and paste the two pages below into a word processor program on your computer, and use this stuff as your guidelines for tenants and pets.  You do not want to have evictions or discrimination or liability lawsuits, and following pre-determined policies will hedge against that.  Process one applicant at a time, in the order received.

APPLICATION REQUIREMENTS
Applicant must be at least 18 years old or legally emancipated, or married to a person who is at least 18 years old or legally emancipated. All adults must fill out a separate application and pay a separate processing fee.

Credit: Applicant must have acceptable credit history. No history of 30 day late pays on rent, no more than one rent late pay per year, no bad credit, followed by bankruptcy, followed by more bad credit, no evictions, and no credit history will be considered to be negative credit history.

Occupancy: Our policy is 2 people per bedroom plus 1.

Income: Legal and verifiable applicant income must equal 2.5 times the monthly rental rate; at least one applicant must qualify for the income requirement.  Debt to income ratio should demonstrate the ability to pay rent.

Rental History: Applicants must have a positive verifiable rental history for the previous four years. Lack of rental history will be considered negative rental history.

Co-signers: We do not accept co-signers for bad credit or insufficient income. This Property is not a Section 8 rental.

Pets: Pets must be negotiated in writing with an increase in the security deposit of $400.00 each for cats or dogs, $300.00 for each birdcage or cage. Aquariums greater than 12 gallons must be completely insured. Service dogs are not considered pets.

Smoking: No smoking in living areas.

Application Fees: Each application must include a fee to cover the costs of obtaining information, not to exceed 30 dollars per person. This is a flow through expense.

Criminal: We have a legal responsibility to prevent or stop behavior which may present a nuisance or danger to persons or property. Criminal convictions will be evaluated in compliance with this mandate.

Screening: Manager may research applicant history for income, expenses, credit, crime, employment, and evictions. The application may be denied for any of the following reasons: charge offs or bankruptcy, prior eviction or foreclosure, insufficient income, unfavorable references, incomplete or unverifiable application information, false application information, or dangerous behavior.

PET POLICY

    Thank-you for inquiring about our pet policy.  Pets are allowed, but a pet agreement must be completed for each pet.  Only the pet in the pet agreement(s) may live at the premises.  The tenant  may not have more than 4 pets.  The property manager may, depending upon the size and nature of the pets, may limit the maximum number of pets to less than 4.
     No venomous pets.
     The following dog breeds, or dogs with the following breeds in their lineage, are not allowed on the premises at any time: Akitas, American Staffordshire terriers,  Boxers, Chow Chows, Doberman Pincers, German Shepherds, Great Danes, Huskies, Malamutes, Mastiffs, Perro de presa Canarios, Pit Bulls, Rottweilers, Saint Bernards, Sled-Dogs, Wolf-hybrids, or any dogs trained to fight, attack or kill.
     Any dog with a history of violent behavior is considered a dangerous dog, no matter what the pedigree, and is not allowed on the premises at any time.
     All dogs must be restrained when they are outside a completely fenced area.
     In making a decision on whether to approve a tenant’s request to keep a dog, management will take into account the dog’s temperament and the arrangements the tenant has made for training and exercising the dog.
     Tenant agrees that if the pet becomes a nuisance to the community, or animal waste is not immediately and properly controlled, tenant shall immediately, upon notice from the manager, remove the pet or vacate the premises.
     Tenants are responsible for and must immediately pay for all damages or injuries caused by their pets.
     All adult dogs and cats must be spayed or neutered, unless a veterinarian certifies that health problems prevent the dog or cat from being spayed or neutered.  All pets must receive proper veterinary care, including all appropriate inoculations; must be well groomed, and must be given a healthy diet and exercised according to their needs.  All pets must also be maintained in accordance with applicable state and local laws.  Dogs and cats must wear identification tags at all times.
     No pet is to be left alone in a tenants unit for a period longer than that which is appropriate in light of the needs of the individual pet.  While this period may vary depending on the pet in question, landlord and tenant understand that, in general, dogs should not be left alone for more than 9 hours, and other pets for more than 24 hours, on a regular basis.  When management has reasonable cause to believe a pet is alone in a unit and either pet is creating a disturbance or any other emergency situation appears to exist with respect to the pet, management will attempt to contact the tenant to remedy the situation.  If management is unable to contact the tenant within a reasonable period, management may enter tenant’s unit  and make any necessary arrangements for the pet’s care, including removing the pet and placing it in a temporary home such as a boarding kennel.  Any costs incurred will be immediately due and payable by the tenant.
     Permission to keep a pet is granted at the management’s sole discretion and is subject to tenant’s strict adherence to all aspects  of this pet policy.  Any tenant who wishes to keep a pet will first obtain management’s approval and sign a pet agreement.
     The pet deposit is refundable following the permanent removal of the pet from the premises, and 21 days after a walk through inspection, and all cleaning and/or repair charges are deducted form the pet deposit.
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Mr_Robin
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« Reply #3 on: November 17, 2008, 09:01:31 AM »

Thanks Steve,  excellent information.  I really appreciate the pet policy.  It covers a lot of areas I would not have thought of.   
--------------------
Robin
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j1dias
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« Reply #4 on: November 18, 2008, 09:08:15 PM »

Steve - good information. Thank you for sharing. Quick question, in your pet policy you state

Tenant agrees that if the pet becomes a nuisance to the community, or animal waste is not immediately and properly controlled, tenant shall immediately, upon notice from the manager, remove the pet or vacate the premises.

Do you feel you are giving the tenant a way out of the lease when you state that if they don't take care of their pet waste, they can vacate the premises?
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BSP
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« Reply #5 on: November 18, 2008, 09:38:15 PM »

Good Point j1dias Some tenants might just make a mess to get out of the lease.
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« Reply #6 on: November 28, 2008, 01:29:38 PM »

It’s been my experience that the more “friendly” a tenant’s departure can be, the better.  If a tenant wants out of a lease agreement, I try to accommodate (my first attempt will be to get them to keep paying while I advertise and show the property).  The more opportunities that a tenant has to sit around and brood about how angry they are at you, the worse the outcome will probably get.
When tenants get evicted, even for a good cause, they might get angry and start to put holes in walls tear out doors, break windows and fixtures…the list goes on.  If you are going to destroy their credit with an eviction, what do they care if they cause an additional $10K worth of damage?  Especially if they are professional tenants, who often move in groups of 4 or more.
Here’s how this one works:
1. They will lie about occupancy, they will only offer one or two people on an application.
2. During their tenancy they whitewash the other resident’s credit by disputing all derogatory items, or set up a new, false identity.
3. When they get evicted, they move on to another unsuspecting landlord with the sanitized resident’s information.
Screen your applicants carefully!  Always run their credit.  Always look up the criminal background with a screening service and in the county’s records (the county records will also show if the applicant has been a plaintiff in civil lawsuits).
The poorest tenants I screen often drive up in the nicest cars.
The most unethical tenants I screen are often the ones who say “I’m a member of the PTA, I work full time and go to school full time, my only debt is my car, I just love to garden, I’m a quiet person; I don’t like parties…”  They come up with lines like this to set you at ease.  Judge these people based on your background checks, not based on whether they are well dressed and “just came from church.”
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Hollywood Landlord
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« Reply #7 on: July 19, 2009, 10:55:20 PM »

I have used a "Qualifying Criteria" sheet along with my rental application for years... it outlines exactly what I use to determine if they will "pass muster" for tenancy in my building.  It also outlines that we don't discriminate and putting this in front of someone has the positive but strange effect of warding off all weirdos and/or troublemakers...

The more professional you can be and give strict guidelines up front, the better off you are going to be.

These types of people can sniff out the newbies and if you act like someone who knows what they are doing (even if you don't), you will come out better in the end!
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HoldAndBuy
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« Reply #8 on: July 20, 2009, 07:12:51 AM »

Does anyone put this in their lease (see the "understand English) part of first page of the lease in the link):

http://74.125.47.132/search?q=cache:4wqnNmJ77XYJ:www.annamariaannualrentals.com/lease/Blank%2520Lease%2520Agreement.pdf+check+the+applicable+provision+regarding+english&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a
« Last Edit: July 20, 2009, 07:14:53 AM by HoldAndBuy » Report to moderator   Logged
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Real Estate Investing Forums  |  Real Estate Investing  |  Rehabbing, Landlording Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas, motivatedceo)  |  Topic: "Read before applying" cover sheet on rental application? « previous next »
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