Why I Don’t Hold Houses

Why I Don’t Hold Houses

First come, first served, right? As a landlord, do you give dibs to the first person to see the property?

Do you hold a property for someone while they get their paperwork in order? What is your policy when picking a tenant? Is the first qualified applicant who is approved, signs the lease, and submits the lease is offered the home no matter who sees the house first?

Why You Shouldn’t Hold Houses

Many applicants drag their feet while you have others that have submitted all their paperwork within three hours without even seeing the property. You will learn over the years that if someone wants a property they will complete the entire process.

Reward the person who finishes first — not the person who is first in the door. As a landlord, this no-hold practice works out both as a business practice and as a human practice of being someone who wants to treat others how you, yourself, wishes to be treated.

Nothing is more annoying, both as a landlord and as an applicant, when you are waiting on someone who is dragging their heels while they explore all their options. There are also the applicants that seem to bail after the people who were really interested have already moved on!

You may have people go through the entire process including paying for the credit and background checks who have then decided not to rent the home. So just because they have gone through the entire process does not mean they will take the property. An applicant might tell you that she was waiting on getting approved somewhere else but saw my house and fell in love.

Or the worst, having a tenant sign the lease and pay the deposit only to change their mind two days before move-in day. This would be the final straw and leads to the no-hold procedure.

The house is not removed from the market until the applicant has been approved, they have signed the lease, and given the security deposit. Once those three things are done, all applicants are informed that at this time the lease is fully executed and all parts of the lease are in effect (including the break lease clause).

The only times that you don’t followed this procedure are likely to be the only times you could be burned. It’s easy to waver because you are human, but trust experience when it tell you not to hold a property!

Make sure that you’re operating from a position of power. Don’t want to waste moving season time and delay filling the property until the fall. That will make my life much harder.

What are you procedures and practices? Do you hold a house for applicants?

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