Unqualified Traffic

Hi everyone!

Now that we're in the slow season, traffic has slowed considerably. I work at an A property and we have over 700 apartments. The slowing down is to be expected, but what is odd is that most of our traffic right now is looking for the lower end of our budget range and 40% of our rentals in the last month have been denied for credit history. As a Leasing Consultant, I always mention to everyone to go to our website and read through our listed qualifications (it's so nice to have them outwardly listed) prior to submitting their application (I always say "to make sure you know what you're getting into" jokingly AND I do say it to every prospect to avoid Fair Housing issues) and still, we have so many denials! I can't figure out if people just really have no idea what their credit history looks like, or if they are just paying attention to pricing, but I've got managers breathing down my neck for answers and I don't know what to tell them.

What I'm hoping to get from your replies is some ideas or information on why we suddenly have such a high rate of unqualified traffic and anyone's ideas on how to encourage better traffic in the slow season. Thank you in advance for your input!!

The applicants who are not qualified play the numbers game.

They apply everywhere hoping someone will take them. I don't know why management wants answers from you.

They are still collecting the application fee. Maybe it should be increased. That is income for the owners.

I would take as many applications as possible for that reason.

They read part of it, but they are desperate and will apply anyway.

Sandy has the right idea. Maybe increase the application charge? Has the criteria been updated lately?

Our management company does not use credit scores for qualifications, because the number isn't what matters. The prospects behavior matters, so our qualifications are based on that. We evaluate criminal, eviction, rental history, and unpaid collections. Our criteria is updated usually once or twice a year, to make sure we are in line with our demographic and the ever-changing landlord/tenant/fair housing laws.

What I do is go over the criteria with the prospect first and explain that I don't want to take their money necessarily. I've found that one way to get them to fully read the criteria is to tell them that I am not allowed to interpret it for them, since I do not know their history.

If your requirement is just a credit score, make sure you know what the minimum score is, and let them know they need to check their credit score before they apply. (I use creditKarma.)

Hi there! 4 Common reasons why you receive an abundance of unqualified traffic/denials are the following:
1. Inaccurate advertising. Check to see if you have the correct pricing in your ads. Keep in mind a $1 difference in price can change when your property will show up in many ILS search results. For example, if your rents are "starting at $799" -you will show up in anyone searching for "under $800". But not show up in the same search if your rates are "starting at $800".
2. Advertising in the wrong places. Backtrack and see if the sources of your unqualified traffic/denials are coming from the same source. THEN, if so--drop it or really scrub the ad to see why it's attracting unqualified traffic. On the flip side, backtrack to your APPROVED rentals- what was the source of that rental? Maybe beef up your ad on that site(s) to help with the slow season.
3. Waived application fees and/or low cost move in specials. Sandy is correct. Applicants will apply at as many places as they can, hoping for an acceptance. If you are waiving application fees or offering a low cost move in special-- this entices them to choose you. This can be good if they are qualified to rent at your property. Not so good if not. Even if your criteria is posted--they have nothing to lose by trying. Make sure you are consistently charging an application fee.
Finally, 4. This one is bit tougher to discuss...but you have to ask yourself the hard questions... How does my property show? Does it look like it's well cared for and the residents are taking good care of it? Balconies are clean, curb appeal is good, dumpster areas are well-maintained? Are we somehow conveying that our qualifying standards are loosey goosey because our property isn't up to par?
Hope this helps you build a game plan. Good Luck!
-Stephanie

I have found that requiring the Application Fee and a Security Deposit (up front) be left with the application often ensures the Applicant is serious and understands the risks and the acceptable rental criteria at the time they apply. I tell them they will not get back the Application Fee and the Security Deposit is returned only if their Application is declined. If your property charges other fees such as an Administration Fee, I leave that to be paid once the application is approved.

Over the past 3 months I have noticed the same unqualified Internet Leads. I would curious to know your marketing sources. We have had to become even more creative and increased our drive by signage. I agree with increasing existing marketing ads to premium status in being in more qualified leads.

We've noticed a pattern during the winter months here in Wisconsin of having a high number of unqualified applicants.
Why is that?
Typically we find that those who have to move in the middle of winter are poor planners, and this often reflects throughout all aspects of their lives, inlcuding their rental payment history and credit report.
Sometimes their reason for moving so suddenly is an eviction. Knowing that they have to leave, they will apply at all the complexes in the area without looking at availability or price and just sign a lease with whoever approves them first.
Having a high percentage of denials during the winter months is common and your management company should expect this ever year.