Key Takeaways
- Use fair, consistent selection methods to avoid legal risk. Choosing the first qualified applicant and applying uniform, Fair Housing–compliant screening criteria helps prevent discrimination claims.
- Streamline applications with clear processes and communication. Set application deadlines, keep applicants informed, and maintain professionalism to build trust and efficiency.
- Document everything. Written screening criteria, selection decisions, reference checks, and rejection reasons protect landlords and ensure equitable treatment of all applicants.
- Professional property management reduces risk and workload. Partnering with a qualified firm like Castle Management ensures legal compliance, thorough screening, smooth rejections, and faster tenant placement.
So you own a highly-sought-after property in the Greater Bay Area, and multiple tenants have applied to rent it. This shouldn’t come as a surprise as the Greater Bay Area is host to plenty of prime real estate, both commercial and residential.
But now you have questions. Who to choose, and why? Could your choice contravene the Fair Housing Act and get you in legal trouble?
Castle Management has the ultimate guide for this situation, and our property management expertise can help you navigate this situation.
Learn How We can Help You
Steps You can Take for Fair and Equitable Choices
First Come, First Served
The first and simplest method you can use to navigate multiple applications to the same property is to pick the first qualified applicant. This is a best-practice in the real estate world, and for good reason.
Choosing an applicant regardless of the order can open you up to scrutiny. You could have the best reasons in the world to choose an applicant out of sequence but if there is sufficient evidence of discrimination –even if it’s unintended– then you can be charged with breaking the Fair Housing Act.
Simply choosing the first applicant to apply is the most direct answer, and can keep you out of trouble, but suppose you want a little more choice in who rents your property?
If you want more control, but don’t want to break the law, partner with a professional property management service.
Managing Applications
There are a handful of simple processes that can make managing multiple applications a breeze. One is to set a deadline on applications to control the amount of applications you receive as well as streamline your work flow. Setting a deadline also puts a sense of urgency into renting your property, driving up demand.
Good communication with applicants is also a must. Keep applicants up to date on the process of their application, and respond to any questions they may have. Clear communication builds trust between applicant and owner, and if you’re an owner, having a trustworthy reputation if a powerful boost for rental demand.
Proper Tenant Screening
Making sure you have responsible and reliable tenants is vital, so it is necessary to have a consistent and legally-compliant screening process. Castle Management can help you there. Our process is tried-and-true and professional grade.
We screen applicants in accordance with the Fair Housing act and any applicable local statutes, giving you control without landing you in legal hot water.
Background checks on employment and criminal history, credit checks, and even previous rental history are all effective and valid criteria for screening potential tenants, and Castle Management can do it all!
Documentation
Even independent landlords need to document their processes. If you have your criteria and screening process written down, then you have a template to work off for every applicant and insurance that you are treating each applicant with the same consideration and fairness.
You should also document why you chose (or didn’t choose) a specific tenant, and document when you made reference calls.
As a professional property management company, Castle Management thoroughly documents our screening and tenant acquisition process to maintain equity, consistency, and compliance with local and federal laws.
Handling Rejection
Once you choose an applicant to rent your property, you inevitably must reject the other applicants. This is where documentation comes in handy. You must give the applicant notice of their rejection, state the reason why and provide the necessary documentation to prove your reasons for rejection are legitimate.
If an applicant fails a credit check, for instance, you must provide them with the name and contact information (address, phone number, e-mail address) of the agency that ran the credit check, as well as any and all details pertaining to the negative credit check.
Rejected applicants also retain the right to a free copy of the credit report within 60 days of rejection.
Holding onto backup applications is an important part of this process, as you’ll now have to review runners-up and communicate with them as to the status of their application. Inform them they are on the waiting list, and will be contacted once your property becomes available again.
Keeping track of backup applicants streamlines your tenant selection process and reduces down-time on your property, meaning your property will not sit empty, earning no rent!
Having an attorney look over your rejection letter is a good practice to ensure you have not violated any fair housing laws in your area. If you partner with Castle Management, we can take over any aspect of the screening process for you, making sure your tenant-screening is 100% legal.
Accepting an Applicant
Congratulations, you’ve found your dream applicant! Just as you have to inform rejected applicants, you must also inform the successful candidate. How else do they get to sign the lease agreement, pay their deposit and rent?
Castle Management’s online portals offer quick and simple acceptance of applicants. Tenants can sign their lease agreement and pay rent online for convenient and timely cash-flow.
To Sum Up
Having multiple applicants to one property might seem daunting. There are many moving parts to the process that require focus and attention.
If you’re working on your own, sloppy documentation and communication could put you under legal scrutiny, or time spent on processing applicants may not be feasible for your lifestyle or other responsibilities.
The best way to handle multiple applicants on your one property is simple– Let Castle Management take care of it!
By partnering with us, you gain access to all the property management tools of the trade, from tenant screening to rent collection, we’re here to help you manage your Bay Area properties with experience and professionalism.
