How to turn an approved applicant into a signed lease
Send the lease the same day you approve the applicant, with a clear signing deadline and a clear way to hold the unit, such as a holding deposit with written terms. Most losses at this stage come from delay: the longer the gap between approval and signature, the more likely they take another unit. Keep the next applicant ready, and treat both the same way.
Why approved applicants do not sign
After approval, the applicant has not committed to anything yet. They may be waiting on another landlord, a job start date, a co-signer, or the money for the first month and deposit. Silence from you also reads as a lack of interest.
- They applied in several places and chose another.
- The lease arrived days later, or in a form they could not sign on a phone.
- The move-in costs surprised them.
- Their plans changed.
You cannot fix the last one. You can fix the first three.
Make approval and lease one step
- Send the approval message the same day. State the unit, rent, deposit, move-in date and the total due at signing.
- Attach the lease for e-signing, so they can sign from a phone.
- Set a deadline in plain terms, such as "please sign by Friday at 5 pm so I can hold the unit for you".
- Say what happens at the deadline: you will offer the unit to the next qualified applicant.
If your approval depended on a consumer report and you attach conditions, a rental decision that is adverse because of the report needs an adverse action notice under the Fair Credit Reporting Act. See the FTC's landlord guide.
Holding the unit fairly
A holding deposit takes the unit off the market while the lease is signed. State law may limit it or set rules on its return, so check your state. Put the terms in writing: the amount, what it applies to, when it is refunded and when you may keep it. How a rental holding deposit works covers the details.
Offer the same hold terms to every approved applicant.
Keep a backup, and treat both alike
If you have a second qualified applicant, tell them honestly that the unit is on hold for another person until a stated time. Do not promise it. If the first person declines or misses the deadline, move to the next in line, in the order complete applications arrived, using the same written criteria.
Example a made-up unit with rent of $1,800. Applicant A is approved on Monday with a Friday 5 pm signing deadline and a $500 holding deposit. A does not sign. On Friday at 5 pm, you move to Applicant B, who applied second and also met the criteria. If A pays by Friday, B hears the unit is gone, and A's $500 counts toward the first month under the written terms.
After the signature
Once signed, confirm the move-in date, collect the funds, and use the steps in the approved applicant checklist. A quick welcome message is cheap and keeps the tenant comfortable.
Be clear about the money due at signing
Surprises at signing cost leases. In the approval message, list every amount and its due date: the first month's rent, the security deposit your state allows, and any prorated rent. Say how it is paid, and that the unit is held only once the lease is signed and the funds arrive, or the holding deposit is paid. State deposit limits and rules on fees vary, so check yours. Showing the total in one line gives the applicant time to arrange funds before the deadline, not after.
How DoorKeeping handles it
When you approve an applicant, DoorKeeping drafts the lease from the unit and the application, ready for e-signing, so approval and the lease go out together. You approve the lease before it is sent; money and signatures always wait for you. If the deadline passes, the next applicant's record is one tap away. See leases and screening.
Sources
Questions
- How fast should I send the lease after approval?
- The same day if you can. Delay is the most common reason approved applicants take another unit.
- Can I take a holding deposit?
- Often, but state law may limit the amount or set rules on its return. Put the terms in writing and check your state.
- What if the approved applicant never signs?
- Set a deadline in your approval message. If it passes, move to the next qualified applicant in the order complete applications arrived, using the same written criteria.