How to generate more qualified applicants for a class D property

I am currently a consultant tasked with increasing the occupancy of a class D property in a large urban city with a current unemployment rate of 16.3% for the zip code. The property has over 45% of their occupancy from housing voucher tenants and we offer no amenities and we have a bad online presence that is actually warranted. The property has a rodent and bed bug infestation. I actually get a large number of applications but very few qualify. My question is how do I get in more qualified applicants to apply? The obvious answer is to improve the property, but the management company is working with almost no budget for improvements.

There are many new vendors who need to generate business in the multifamily arena. Perhaps a painting company, new pesticide vendor, or landscaping company will work with you on a discounted price to give them a chance to show their work in hopes of creating more business. You can keep their business cards on hand and share them with any sister properties. I would try working on a more local level, instead of trying to go with the big corporate companies who often have much higher price tags.

To get qualified applicants, have prospects "pre-qualify" themselves with the right information. List your criteria in ads, brochures, fliers, etc. Hand out paper copies of the criteria to prospects and have them read and initial it before they can get an application.

Prospects who call for an appointment can be easily be pre-qualified on the phone with a list of questions to answer before they come for their tour.

Property improvements may be optional, but habitable housing is not. If there is no budget available to spend on pest control, the owners need to use a portion of their profits to ensure a safe environment for their residents.

I have always networked with other properties in the area for referrals of their under income prospects or other qualifications they don't meet.

Increase your marketing exposure, too.

I put ads on Postlets that syndicates with other sites and it's free.

Be sure to use specific searchable words in your ad (like near "Clinton Elementary School.")

Go to your local elementary school at pick-up time and hand out brochures to parents in line to pick up their kids.

Check with after-school programs, like the Boys and Girls Club, and ask if you can put a brochure stand in their lobby.

Ask for referrals. Tenants who like you will help you!!!

All these suggestions are great, but make sure you also take a look at your qualifying standards. Perhaps they've been in place a long time and need to be lowered.

Revising your qualifying standards should be your first approach. However be sure to implement safeguards if you are going to reduce your credit and/or income requirements. Check out www.neighborhoodpayservices.com or message me for more information. -S

Awesome ideas Sandy!

Do you rent to felons, and if not why not and if so, to what type of felons?

That's a good question Sam.

I have heard that in some states felons and other criminals are being designated as a protected class so a landlord cannot deny them a place to live.

Currently in my state, criminals are not a protected class and we can and do prohibit perpetrators of most crimes.

I think that people who have made mistakes in their past should be able to obtain housing, and that it's a bad idea to lump all criminals together in one area where the bad ones could influence the ones who really want to get their life together. But I also wouldn't want to risk my residents, neighbors, and friends safety.

We own a 48 unit in the inner city of San Antonio and as such folks who have criminal backgrounds are very common.

I find that tenants who are given an opportunity or call it a second chance are much more loyal than a regular walk in applicant. So I have always offered to felons. Early on, I got to know our local police contact, in our town they are called Safe Officers and in working with them, I would allow or not allow a person based on the applicants criminal record. I do not take at all:

Carrying concealed weapons charges
Selling drugs in the past 4 years
using in the past 2 years
any gang involvement
prostitution last 4 years.
any sexual crime is a big no no.
Violence is a tough one, if the fight is family maybe, there is no clear cut answer. any violence to public is a big no no.
we get a lot of violence within family, and this is tough. I am currently taking a applicant who has violence against other family members, but in researching it, I am ok with that. I talk to their parol officer or other agent official if I have any questions.

I once took a tenant who had committed murder about 20 years ago, and he was having problems finding an apartment, he was very nice so no issue with him.

I love white collar crime, check fraud, driving while drunk, (I have a tenant that left me and is serving one year in jail for drunk driving and I will take him back next month)

I tell folks to tell me everything and one time I had a guy with a 20 page rap sheet, it was crazy but I took him and it worked great. If they do not tell me everything then I skip them. I want honesty.

I give them a 3 month lease and watch them closely. I do get a deposit

They tent to be very loyal and stay for a long time.

I find that I build a reputation of someone who gives a second chance but only if the applicant tells me everything, I make it very clear, that I have a short fuse, any screw ups and they are out.

My last two years I have averaged a 3.5% vacancy rate and my collections are higher than most in my area. 75% of my tenants have been here at least three years.

We have cameras on the property so I see everything and at all hours of the day and night, causes folks to behave at night.

taking criminal is not for the weak at heart, but it works really well for me. My best tenants tend to come with baggage so when something breaks here on the property I am not screamed at by a tenant.

hope it helps

Sam