If a dog is man’s best friend, and diamonds are a girl’s best friend, then what is a landlord’s best friend? In my thirty-plus years in the industry, I’ve come to discover that having a written, detailed, and well- defined criteria for each of my properties has really become my best friend. And maybe even more important than having a criteria is the sharing of that criteria with all future tenants. Taking sixty seconds to share your criteria can save you from sixty days or more with an eviction and rehabbing and turning your property.
Before moving on I must state that I am happy to accept any and all applications for my property. I would never restrict someone from applying, ever, for any reason. But to save lost time and money, and to responsibly manage, here are the three ways I share the property-specific criteria that have served me best in my career.
In the Listing: If sharing your criteria is important, why not get it into the hands of your potential tenant as early as possible. I like to have it posted in the listing as a way to begin screening right out of the gate. This makes my job easier and saves me time and money as I find myself showing the property to individuals who might actually become tenants, rather than just showing it to people who are out “kicking tires” or who are filling up their free time looking at homes. For example, if you have a strict “no pets” policy for a property and you share that in the listing, the person who owns three dogs and is looking for a home can skip right by your listing and move in somewhere better suited for them. A word of caution, you never want to include anything in your criteria that falls under the seven protected classes as defined by federal law. Things like FICO scores, smoking policies, or occupancy limits are not protected classes, so feel free to use and share those. Always check with your attorney to ensure you are in compliance.
At Time of Showing: I like to present a printed version of the criteria at the time of showing. I usually don’t review it with them at that time unless they show interest in the property and begin asking questions. Usually at this point they are asking me “what does it take to qualify for this property?“ This is the perfect opportunity to review with them, line by line, exactly what the criteria consists of for that property. I’ve often had individuals see something on the criteria during this time that they had overlooked when reviewing the listing and they have eliminated themselves from consideration for the property.
When Sending the Application: Now that they have reviewed the listing and received a physical version of the property criteria at the showing, I give them one more chance to self-screen as they receive it again with their application. My intent is never to get rich off of an applicant’s $35-50 application fee, so giving them one more look at what is expected for this property at this time can save everyone in the transaction time and money. Plus, they are now physically signing off that they have received and reviewed the criteria, which helps protect you down the line if there is ever a violation in the future.
Bonus: I also include the criteria in all of my lease documentation as that is the binding contract between the two parties. With four opportunities to review the criteria, you are operating from a position of strength as a responsible and fair housing provider.
If you haven’t created a unique, well-defined criteria for each of your properties, I urge you to take the time to do that now. If you do have a criteria, please review it with your legal advisor to make sure it is current and in compliance with any new rules or laws. And once you have a clear and comprehensive criteria in place, share it with anyone and everyone that is interested in your property. Who knows, maybe you’ll make a new best friend in the process.
David Pickron- David Pickron is President of Rent Perfect, a private investigator, and fellow landlord who manages several short- and long-term rentals. Subscribe to his weekly Rent Perfect Podcast (available on YouTube, Spotify, and Apple Podcasts) to stay up to date on the latest industry news and for expert tips on how to manage your properties.
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