You're reading the rental application, eager to gain an agreement...and you get this funny feeling. You try to convince yourself it's gas, but  you know in your gut that something is just "not right". You can't quite put your finger on it...but something is telling you to "just say no". The application is filled out completely and the information appears to be accurate. But there is that "tickle" on the back of your neck that won't go away.

Let's face it, we have all (horror of horrors) delivered rental merchandise without checking references. There is a tendency among RTO veterans to believe we have a "sixth sense" when making the go, no-go decision on a rental app. A "shoulder devil"  that whispers in our ear..."Go ahead, It's easy.... write-em-up and send-em-out... Gain Gain Gain!"

When reviewing a Rental Application, you are interested in 2 things.

• Is this customer a "Skip Risk"?
• Will they still be renting 4 or 5 months from now?

While there is no substitute for diligently checking references, there are a few responses that warrant increased caution.

Have you ever rented from any other Rent to Own?
While we may like to think we are the only Rent to Own in the universe, the reality is "we all rent to the same customers". 

The typical RTO Customer rents about 4 months. Where do they go? They go down the street to the next guy! If you doubt this, check out a few customers that have had multiple agreements spread over several years. If you have 3 competitors in your market, "your" customer will return about every 12 months. (Math is a beautiful thing)

Bottom line, most, if not ALL of the customers coming through your front door have rented or are currently renting from a competitor. If a potential customer states otherwise (while there is a slight chance this may be true) you should be on the phone to your competition before the ink is dry on the application.

On the flip side, a customer that admits freely to renting elsewhere, and is able to list all references with addresses and phone numbers is "GOLD". This is a way of telling you "Go ahead, call them, I'm the best customer they ever had". Don't let this customer get away! 

Self Employed
{adjective} from the Latin Root "unemployed"
I have been self employed for 15 years. I can't get a sandwich without 2 years of tax returns and a blood sample! A "legitimately self employed" person will have no problem supplying proof of income for a reasonable period. 

"I only know 2 people"
In my years as a salesman, I came to believe in Zig Zigler's  fundamental, inescapable, law of the universe. It is known as "the law of 200". Every person knows 200 people well enough to invite to a wedding or a funeral. Anyone with a pulse should have no trouble listing 5 friends or neighbors they see on a regular basis.

Most RTO Applications require "personal references". The level of difficulty a customer has listing 5 personal references is, in my humble opinion, a better indicator of the customers reliability than actually calling the references listed.  If a potential customer struggles for 30 minutes to come up with references...be on guard. The customer is actually struggling to come up with 5 people who won't laugh when you call and ask if they are reliable.

Do you Own or Rent Your Home?
The percentage of Rent to Own customers who own a home, vs. rent a home or apartment, is essentially non existent. "I own my home" may mean 1-"I own my home" or 2-"I'm behind on my rent and I don't want you to call my landlord.

How to say NO
By now, some of you think I am a hopeless cynic. Nothing could be further from the truth. I could count on one hand the number of times in 6 years I refused to rent to a new customer. When you ask the right questions on a rental application, and you insist that it is filled out completely, most "high risk" customers will simply move on. The level of detail required should be directly proportional to that "funky" feeling you have. Understand that you are in the "risk" business. Accept that risk and manage it.