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When To Turn Down Rental Applicants




Why is it one of the first words we learn to say quickly is “no?” Then, why is it so hard for people to accept when someone says “no?” Whether an owner finds it difficult or not, there are times to say “no” to a prospective tenant. Most property owners or managers rent to applicants based on credit, income, and rental history. This usually provides a solid foundation on which to approve or deny an applicant.


Nest Managers take the screening process further – 14 steps further: tenant overall risk assessments, detailed rental verifications, employment and wage verifications, social media checks to name a few! Many owners are not aware of the many “land mines” there can be when denying an application. Complying with Fair Hous


ing is the primary reason to be on concrete footing when denying an application.


Here is an example of discriminatory practice. Mr. Jones (Landlord) met with two different couples, the Hansons and the Smyths, at his property separately but on the same day. However, Mr. Jones liked the Smyth couple better. He offered them a reduction in the security deposit that he did not offer to the other party and allowed a small dog when he had informed Mrs. Hanson that he would not accept any animals at any time. Both parties put in applications and Mr. Jones selected the Smyth application without even contacting their la


ndlords, verifying income, or checking credit on Mr. and Mrs. Smyth. The Hanson couple learned of the reduced security deposit and that Mr. Jones did not check any references on Mr. and Mrs. Smyth. However, he had obtained the Hanson credit report, which did not reflect any negative problems.


They promptly took Mr. Jones to court and won a large settlement because he did not treat each applicant equally settlement because he did not treat each applicant equally. Knowing “what discrimination is and what is not” is often difficult for owners.


The Fair Housing laws do cover a vast area, but no property owner is required to rent to applicants with pets, (unless it is a verified emotional


support animal) to those who are abusive, and to someone who has poor credit, lack of income, or bad tenant history. However, Fair Housing means that you do not have “separate rules for separate parties.”


Fear often contributes to a landlord making a bad decision. Property owners can be afraid to say no because of a long vacancy and they are losing money. They can be afraid just to face an angry applicant and therefore are willing to accept som


eone because they intimidate them. Fear of retaliation is another factor in today’s world where people who do not get what they want can become violent people who do not get what they want can become violent. Realizing the benefits of saying “no” can make it easier to deny the applicant when it is necessary. Learning that someone has bad credit means the probability is high that the rental payments will be a problem. Contacting an owner and finding out that they took poor care of the property can save unnecessary money on future maintenance and rehabilitation. If the applicant is pushy or aggressive, denying their application can mean avoiding future confrontations and unreasonable demands.


If an owner has to say no, it helps to look at the entire picture. Denying an applicant is never easy. However, saying no can reduce future difficulties and financial loss. As your property management company, we know that at times it is necessary to say no, based on sound criteria, to protect your investment.


It's important to comply with Fair Housing laws when denying an application, and our team at Nest Managers is well-versed in these laws. Discriminatory practices can lead to costly lawsuits, so we ensure that each applicant is treated equally and fairly. We also understand that fear can contribute to a landlord making a bad decision, but the benefits of saying "no" when necessary can save you from future difficulties and financial loss.


At Nest Managers, we are committed to protecting your investment and ensuring that you have the best tenants possible. Our team has the lowest eviction rate in Fayetteville, NC for placed tenants, and we take pride in protecting your investment as if it were our own. If you're looking for property management services in Fayetteville, NC, contact us today to learn more about how we can help you.


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