Apparently as part of the FCRA we’re legally required to provide a letter detailing why someone was denied? Were others aware of this? I was not…
Is anyone setup with AmRent screenings through RentManager? Is it worthwhile
IF that decision was based on credit.
If it was based on other reasons I don’t think you need to provide a letter.
It is always nice to have a good qualified tenant to point to. In other words sorry we chose not to rent to you as we have someone else we chose to rent to.
We are setup with AmRent and I am fairly certain they have an option where they provide a letter.
We handle ours through the virtual post office in rent manager. The Virtual Post Office is free to initiate and can be set up with a simple phone call. So, our District Manager just simply gos in, right clicks on the the prospect’s name, chooses write letter and chooses the appropriate letter format for the prospect. We had an admin set up the letter in a way that it auto fills all the prospect info and has a few questions our District has to answer in order to complete the letter. Such as credit score.
From there, our District will just run through the mailing options and send it over the Rent Manager to process. It costs us 79 cents per letter and takes our team member about 2-3 minutes to complete.
Coincidently, we’ve also recently switched to a scoring model that effectively prices credit risks out of the market for the home, as opposed to denying them. The rent and security deposit fluctuates based on the riskiness of the prospect. So, if you have a 400 credit score and your income barely qualifies, the rent will be higher per month and the security deposit will be at least $1,000-$1,500 (in states that allow for this). If your credit score is in the 650+ range and you make $50k-$60k in the household; then your rent will be lower and you won’t have to pay a security deposit to move in. The second type of tenant (over a large enough data set) has the following characteristics: They stay many months longer on average, they do less damage to the home upon moving out, they are more likely to be a less time consuming tenant for our manager. Therefor, we make it extremely difficult for a risky tenant to move in and extremely easy for a desirable tenant to move in. It helps the sales process because all of our ads suggest that a security deposit is required so when it’s waived, it generally makes it easy for our desirable prospects to decide to move forward.
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This is great. Appreciate it.
Separately, what do you pay this district manager? How many lots do they oversee and how do you manage them? I have about 500 lots in a specific geography and may be getting to that point.
Our District Manager oversees a little over 1,000 lots but probably should’ve been put in place around your size. Grunting through the minutiae likely stunted our growth considerably in the first few years. We also have 500 or so lots in our personal portfolios and around 900 lots under contract so we’re likely in need of a second and possibly a third district soon.
We manage our district mostly through a weekly meeting that lasts an hour an a half and it has a set agenda each time. This meeting occurs after the District runs the same agenda at his own meeting with all of the managers. We also do a daily 10 minute standup where he tells us what he’s working on today and we ask if there is anything he needs our help with today. That occurs in the mornings and he in turn also does that with each of the managers on his own. Think, “military morning formation” type of thing. A quick check in every day to direct the troops properly and then let them go do their thing so we can do ours.
Our guy makes roughly $40k base with the ability to make around $60k through hitting certain performance bonuses tied to occupancy and NOI benchmarks. We also provide health/dental/vision to all full time salaried employees, which includes our District and about half of our park managers.
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Much appreciated. Thank you.