Once you’ve decided to approve an applicant, let them know that they’re your next tenant as soon as possible so you can both take the appropriate next steps to make this happen. Ask them for the security deposit right away in order for you to hold the property for them. This should be a rock-hard rule for all approved applicants. Don’t take your property off the rental market until you’ve got that security deposit in place. If they claim they don’t have the money (whether it’s true or not), let them know that you can’t hold the property for them until you have their financial commitment. A financial commitment demonstrates actual commitment that they’re serious, responsible, and ready to move in. Of course, denying applicants is part and parcel with the rental property management business. If you don’t like saying “no” to people, well, you’ll have to get used to it, because you can’t let every interested person rent your place. When you’ve decided to deny an applicant, let them know right away, as well. It’s in everyone’s best interest if you do so. Don’t forget to let them know why. You need a reason, or they can file a complaint. For example, if you’re denying them for credit issues, you must follow the requirements of the Fair Credit Reporting Act. There are rules and guidelines that you must follow to reject a tenant for this reason. Further, there might be additional laws from your state or local government about credit applications and credit reporting. Different states have their own credit reporting acts, so do your research and consult your attorney so you can back up your denial legally. Besides complying with the Fair Credit Reporting Act, you also want to ensure you’re in compliance with the Fair Housing Act in your rejections to avoid discrimination complaints and lawsuits.
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