How should I choose between multiple qualified applicants?

How should I choose between multiple qualified applicants?

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While many owners struggle to find qualified tenants for their property, a distinct few may be fortunate enough to have multiple applicants willing to rent their unit. While almost all owners would agree, having multiple qualified potential tenants is a good problem to have; many owners don’t know the exact protocol to follow in order to comply with the Fair Housing Act.

So you have multiple applicants willing to rent your property, what is the first step in order to determine who to rent the property to? First of all, you must create a qualification criteria and apply it equally to all potential tenants. This may be a minimum credit score and minimum income requirement that you will require from your tenants. In addition, you may require documentation of rental payment, as well as one positive reference from a past landlord. The most important aspect is creating a standard and applying this to all applicants.

What if multiple candidates exceed the minimum qualification requirements? In the event that multiple applicants exceed the criteria you have set, you will need to create a fair method to determine the tenant you choose. An example would be selecting the tenant that exceeds the qualification requirements the most. This may be the tenant with the highest credit score, longest documentation of timely rental payments, and/or the most positive references from past landlords. Another example would be selecting the first qualified tenant that was interested in the unit. While there are pros and cons to each, whichever method you choose, be sure to remain consistent and apply to all properties you rent.

Once you determine which applicant you would like to enter into a lease agreement with, be sure to provide written notice to all other applicants. This should include the reason for not renting the unit to the applicant. As long as the reason for denial is not correlated with the applicant’s status in a protected class, you should be in compliance of the Fair Housing Act. In the event it was based on information contained in the applicant’s credit report, you must state this as notice of the denial per the Fair Credit Reporting Act.

The Fair Housing Act can be very confusing and a costly mistake if an owner does not comply.  If you would like to learn more about the Fair Housing Act or if you would like assistance in managing your investment, please consider hiring FRE Property Management. We are the premier property management company in Utah and will provide the peace of mind knowing that your investment will be taken care of. Contact us today at 801-673-5692.

How to Market my Utah Rental Property?

How to Market my Utah Rental Property?

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So you have decided that you are going to rent out your home, the next logical question you will probably ask is: How do I find a qualified tenant? There will always be quality people that are looking for a Utah rental property, but you will need to actively seek them out. Here are some tips that will help you find the right tenant and start covering your mortgage each month:

 

  • Put a Sign in the Front Yard – This might seem like the most obvious marketing tip in the world, but it always amazes me how many owners don’t do this. By putting a sign in the yard, it will not advertise to potential tenants that drive, but it will also let your neighbors know that the property is for rent. If your neighbors really like the area, they will let their friends and family know about any available properties. It really is amazing how many rentals are filled this way, and how inexpensive this advertising is.
  • Make Sure your Property can be Found Online – Oh, how the times have changed! In today’s market, more than 80% of prospective tenants begin their search online for a Utah rental property. There are so many free classified ad websites on the Internet, as well as many inexpensive sources that specifically target renters. This makes it easy to market your home to a wide range of people. If done correctly, your property may only remain vacant for a few days!
  • Tell the World About your Property – You should never be ashamed to pitch your rental property to family, friends, and related professionals. Maybe your brother has a friend that is looking for a home to rent or your friend has a co-worker that needs to lease a place. In addition to these people, your real estate agent and mortgage broker are great resources for finding interested tenants. They are constantly working with individuals that would like to purchase a home, but can’t for a variety of reasons. This word of mouth advertising does not cost you anything and can be very effective.

 

There is no shortage of things that you can do to get your Utah rental property filled with quality tenants. They do exist, but you really do have to be proactive in finding them. If you have any questions about how to market your rental home for prospective tenants or if you are considering hiring a property management company, please contact us at FRE Property Management. We are the premier property management company in Utah and will provide you with the peace of mind knowing that your investment is being taken care of. Contact us today at 801-673-5692.