8 most common issues that arise during the rental process

1. Application Rejection Due to Poor Credit

a. Assessing creditworthiness:

Some agents shy away from discussing financial requirements such as deposits and creditworthiness because those can be very personal questions. However, by not discussing them, you run the risk of only learning about their rental requirements without knowing if they’re realistic. This can lead to a lot of lost time and effort, so it’s crucial you have an honest conversation with the renter before proceeding to search for a property. Use the LPMAMA method to approach this non-confrontationally while ensuring you gather the necessary information:

• Location: Confirm the area the lead is interested in.
• Price: Verify the price range the lead is working with.
• Motivation: Understand why they are considering a move.
• Approval: Ask if they know their credit score and the last time they checked it.
• Means: Check if they have the necessary funds available.
• Agent: Determine if they are working with an agent and if they have a Tenant Agency Contract with that agent.

b. If rejection seems likely:

If it appears the renter may not get approved, consider the following options:

• Advance payment: Some landlords may accept three or more months of rent in advance if the renter can provide the funds.
• Co-signer: Have the renter obtain a co-signer(s), especially if they lack a job or credit history.

For more information on how to help the renter, check out these blog articles:

• Your Client’s Rental Application Was Rejected – Now What?
• Helping Renters With Challenging Credit

2. Unresponsive Leads

Speed is critical when contacting a new lead so consider these steps. 

a. Utilize the TEC method:

• Text: Inform the client you will call at a specific time to discuss their rental needs and leave your callback number.
• Email: Follow up the text with an email containing the same message.
• Call: Call the client at the specified time.

Check out this guide to making contact with a lead. 

b. Persistent follow-up:

• Call at different times if there is no response.
• Try to contact at least three times.
• Provide a reason to call back, such as mentioning new listings they might be interested in.

Here’s an example contact plan.

3. My tenant rented a property they saw without me 

a. Protect your commission:

• Agency contract: Have the client sign a Tenant Agency Contract from the start. Discuss the contract during the qualification process, and don’t set up tour until you’ve received a signed copy.
• Short-term contracts: If hesitant, offer a shorter contract duration (e.g., 30 days).
• Constant communication: Stay in touch during and after showings to understand their preferences and modify searches accordingly. This is particularly important when a renter tours something unaccompanied so you know how their needs are changing.

b. Enforce contract terms: If they begin to try to rent a property independently of you, you can remind them of the borker fee due as per the Tenant Agency Contract. Consult your broker if you’re having trouble. 

4. No Show or Lack of Communication After Showings

a. Understand client reactions:

• Gauge their optimism or lack thereof after showings. Don’t assume you know what they do and don’t like about a property. You can even ask them to rate each listing you show them on a scale of 1-10. Get their feedback and track it after each listing so you can reflect how you left off with the client. 
• Confirm next steps: Set a target for the next day you'll tour listings and send them new listings to consider.

b. Encourage contact: If multiple contact attempts fail, wait a few days or a week before trying again.

Here are some helpful blog articles:

• No-Show on a Showing? Here’s What You Did Wrong
• 11 Step Guide to A Successful Showing

5. Non-responsive Landlords/Management Companies After Application Submission

a. Confirm they’ve received all required items: Inform the property contact that your client submitted and the application. Ask them to confirm receipt/accuracy and the timeline for a decision.

b. Escalate if necessary: If you still haven’t received a response, visit their office directly or contact their manager/broker.

6. Listings Rented Before Showing

a. Verify availability: Double-check listings before showings. Be proactive in communication with landlords/agents about potential changes.

b. Prepare alternatives: Always have a backup listing ready and inform the client about market conditions to manage expectations. Even better is to tour a minimum of three or four properties initially as renter rarely rent the first property they see. 

c. Set expectations: Communicate with your renter and set expectations on market conditions including how fast rentals can go off-market. This allows you to be up-front and transparent about changes because you educated them during the qualification process. 

7. Co-signer Issues

a. Don’t assume, confirm involvement: When dealing with college students or new graduates, always speak with potential co-signers to confirm their awareness and willingness to co-sign.

b. Confirm co-signer requirements: You should also confirm the co-signer requirements because they can be more stringent than for a renter. For example, a co-signer may need to make six times the rent and live in the same state as the property. 

c. Expedite process: Use eSignatures to speed up the paperwork and get co-signers on board quickly.

8. Additional Roommates On The Lease You Didn’t Know About

a. Ask the right questions: Ensure you know about all potential roommates and communicate with them directly. It’s vital to have this information because it ensures the right people signed the Tenant Agency Contract, the decision makers are present in the tour, and the application and lease are completed accurately. All of this saves time, avoids repeat showings, and expedites the process.

b. Coordinate showings: Arrange for all interested parties to view the property and sign necessary documents promptly.