How do you turn down prospective tenants

[David8043]

What do experienced real estate investors say to a prospective tenant who wants to rent a vacant unit, but you don't want them? For example: 5 people, all 19 years old, want to rent my nice home. The non verbal cues clearly indicate "partiers". I can envision a trashed home in the short term future. The next group to view the home was a family, and again I felt very bad vibes. I firmly believe that it is better to leave a place vacant for an extra month or so , than to rent to tenants that I believe will not be good. In the past, in a stronger economy, I just stalled those people for a few days, and rented the home to a nice family. I then told the less desirable prospective tenants "Sorry we have gone with someone else". Now I get about 1 viewing per week, and that approach does not work. What do other investors say to potential tenants in such a situation? How do I turn them down and not get myself in trouble? (maybe for age discrimination, racism, or whatever other card they might wrongly think applies)

 

[Thomas Beyer]

You tell them “we declined your application” or you say nothing or you say “I am a private entrepreneur with hundreds of thousands of dollars invested here and I - and no one else - decide who lives here, and guess what: it’s not you” or you say “ we decided to rent to someone else “ ( and without saying it that this “someone else” hasn’t shown up yet ) !!

 

[Martin1968]

If you can financially carry the empty unit then i would advise to let it sit empty a little while longer and wait for the right tenant. Better safe then sorry.

As for what to tell them, if i’m in doubt about prospective tenants i usually tell them; i will think about it and contact them if i decide to move forward to start up an official application process.
Or, i say things like i’m currently in the process of approving a few applications and if it doesn’t lead to anything I ‘might’ contact you. (ofcourse i wouldn’t)

At the end of the day as a landlord you are allowed to have your own qualification criteria within the confines of the law, and as much as you can’t say certain things, as long as you say things in a tactful way it would be incredibly hard for anyone to accuse you of racism or discrimination or all the other social correctness crap.

Cheers and good luck with it.

 

[Devin Roberts]

If you have picked another tenant, you can say “we have chosen someone else”. Usually it is not the best to say “we are still thinking/deciding” as they keep nagging. You could also say “sorry ___ did not come back as I had hoped on the report/application”. Hope this helps


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[kfort]

Never give a reason. You’re not required to. Also don’t lie and say you have chosen someone else if you have not. I do not provide a phone number to potential applicants, just email. They are told they will be notified if selected. If they keep pestering me I ignore them. The rare occasion I do respond after declining them they are told I’ve decided to select a different applicant. End.

And if it’s somebody who I will never rent to, I block their email address (although kijiji is now scrambling them anyway).


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[Alvaro Sanchez]

Your rental application was not approved. (<--- Notice the period at the end. )

 

[Teresa10609]

I thought of reiterating Kfort's advice. Do not give a reason as innocent or genuine as it may be even if the tenant asks.

You can choose to let them know the place has been now rented or the place is no longer available (if that is true) or the rental application was not approved (my least favourite as it hints something about them did not fly versus something about someone else stood out better).

Any responses for reasons can be used by applicants for future lawsuits. For example, you said something about the big dog (you can't decline pets without valid reason), or you choose someone from your own country and you thought you were telling a story of how you want to help out someone from back home but to the applicant that's discrimination, etc. You get the idea.

 

[Martin1968]

Your rental application was not approved. (<--- Notice the period at the end. )

I do find this one pretty funny. However I never use that line. Lol

The process I follow is that of advertising first, then when I get replies for showings I ask for a short interview, often by text or sometimes phone call. Based on that I decide wether it’s worth my time to meet for viewing. After viewing, if both parties express interest in moving forward I supply them with the application form.

So yeah after the text or phone exchange, I already know wether I have a winner or not. The ‘losers’ (sorry if that doesn’t sound respectful but I don’t claim I’m politically correct, just trying!) don’t get to the actual application stage. If I’m in doubt, I will let them know I’ll think about it, to buy myself some time to see what else is coming my way. Everyone seems to understand as no one ever nags about it. To say that application didn’t come back as I had hoped for or not approved I personally wouldn’t use. As said by the time I get to that stage I usually know if it’s gonna fly.

I would only say it’s rented, when it truly is rented out, as if not , I assume you will keep advertising the unit for them to see. For the rest I don’t give reason nor am I ever asked actually.

Oh and you can’t decline pets? Never knew that.

 

[Tina Myrvang]

LOL

 

[Matt Crowley]

we declined your application

"..."

 

[bb2]

Your rental application was not approved. (<--- Notice the period at the end. )

This is what I say after 30 years of renting out properties and it works every time. You don’t need to over complicate it.


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