It’s no secret that the rental market has gotten highly competitive, for owners and tenants alike. 2023 saw another increase in the total number of residential lease agreements, with forecasts showing that the number of renters will only continue to increase in the next 5 years.
Northern Virginia rental properties have been no exception to this rise in renters and rental costs. One trend amongst renters as a result of the market conditions for rental properties has been a tendency to blanket a wide number of rentals with applications. This seems harmless on the surface as just a way for applicants to ensure they land a lease; however, this strategy of applying to a multitude of properties at once can cause chaos for a property owner.
Read on to find out more about why renters are applying to multiple properties at once, the harm this can cause to property owners, and how you can combat this.
Why Tenants Apply to Multiple Homes
As mentioned above, a major reason for applicants blanketing as many properties as possible with applications is the intense competition they are facing in securing a rental right now. With so many renting properties, only applying to one property is seen as too risky. Especially when urgency and deadlines are a problem. Many of the applicants you will screen as a property owner want to lock down a lease as soon as they can. This can be due to an expiring lease at their current place of residence, relocation for work or school, or other more personal reasons. And with rising home costs driving more towards renting, they can’t afford the risk of competing with so many over one property.
One aspect that might discourage an applicant from applying for too many properties at once however is rental fees. Most properties for rent are going to charge a rental fee for applying to cover the costs of a background check. This cost and the applicant’s budget can slow down how many applications they’re putting out. As we’ll discuss later, this can also be a tool when utilized correctly to attract the right applicants.
The Downsides for Property Owners
So how does all of this potentially cause chaotic, last-minute situations for you, the homeowner? Well, let’s say you have a property listing that you’ve been trying to rent for two weeks now, which is about the average days on market for a Chambers Theory property to rent, if it shows well and priced right. You’ve had a few inquiries but only some have come back as qualified after pre-screening and a few showings have taken place with qualified prospects. One showing went very well and they applied! The application is fully vetted through a thorough process verifying employment, income, landlord references and finding out details such as if there are pets. You’re presented with the application once it’s been screened and you accept. Great! You’re prepared now to have the lease signed and start generating income on the property again. A lease is sent right away by the leasing team, the applicants have 48 hours to return the lease signed to secure the home. But then, the applicants ghost you. After trying to reach them for another day, they finally respond and let you know they’ve decided to sign the lease on a different property. Now it’s back to the drawing board after wasting valuable time on an applicant who wasn’t going to become a tenant.
Vacancies are the biggest cost to a rental property owner, and this strategy by applicants means potential extensions to the time that your properties will spend sitting vacant. Getting to the very last step in the process means you shift your focus from finding a tenant and accepting applications to signing a lease. This means the entire process of marketing your property has to start again. However, there are ways to combat this and it all boils down to being thorough with your applicants.
From Application to Move-in
The biggest way to avoid putting yourself into a chaotic situation where an applicant pulls out at the last minute is by following a few best practices to get tenants to sign efficiently and get them enthusiastic about your property. These are practices that a seasoned property management company will follow every time, which is a good reason to hire one for your rental.
- Start Early on Finding Tenants: When you know your property is going to be vacant ahead of time, you don’t want to wait until the last minute to start looking for your next tenant. A good practice is when a lease is ending and the tenant isn’t resigning, start the process of marketing the property and finding applicants at least 2 months ahead of time, when possible.
- Understand the lease. It’s important that you review your lease ahead of time so that you are familiar and comfortable with all the standard terms and conditions. If you have questions pertaining to specific clauses, it’s best to speak with your property manager before a vetted, accepted applicant, so that you can be comfortable with the contract and be ready to sign the lease right away. Ask your property manager for a copy of the standard lease agreement in advance to allow you time to review it.
- Make the Process Efficient and Transparent: Keeping the process moving promptly from application to move-in is key to avoiding last-minute drop-offs. Alongside this, keeping communication clear throughout the process will keep your applicants invested in the property. Moving from application to lease should be an easy process. Chambers Theory uses a streamlined online leasing platform for both tenants and landlords, providing clear and concise communications to all parties, and recommendation or denial of applicant to help guide you to the best decision for your home.
- Signing Your Applicants Quickly: The easiest way to ensure your applicant doesn’t accept another offer is to get the lease signed quickly. It’s important to act quickly when an application is presented, be prepared to make a decision, especially if the application looks good. Your property manager won’t steer you wrong, more often than not, a bird in the hand is worth two in the bush, if they’re recommending to accept the applicant, you should act quickly too. Once an applicant is approved, a good practice is to get them signed within the next day or two. Don’t put the signing off, make sure they can sign lease documents as soon as possible.
Securing Tenants for Your Rental Property
Ultimately, potential tenants applying to multiple properties at once is something that you as the property owner cannot control. However, you can avoid the chaos it creates. The best way to do this is by hiring a property management company that knows the ins and outs of securing tenants.
Chambers Theory has that proven track record of quality property management that you can rely on. We handle every step of managing your property so you can avoid the stresses and just enjoy the benefits of rental income.
Start by learning more about our team and how we can help you make the most out of your rental property.
