You've searched and searched and then... yep, probably searched some more to find the perfect rental home or apartment. Now what?... well, as a surprise to no one, the first step is usually to contact the landlord, view the home, and then submit your application. But wait... after all that searching, how can you be certain your application will get approved? And why is that even fair... to have to be 'approved' to 'pay' for an apartment anyway? Well, as you can imagine, there is a lot more that goes into a rental application approval other than just being able to afford the rent... although that is an important one too.
Renting is unique as it involves purchasing of a product known as...'TIME' and involves establishing an ongoing buisness relationship with your landlord and their significant asset—the rental. Beyond move-in costs, factors like character, financial stability, payment ability, communication, and residential history influence rental application approval. We will guide you on improving your chances of approval. Let's go!
Get Organized Before You Apply for an Apartment
Landlords favor rental applicants with organized rental applications. Typically, they require an application form, photo ID, proof of income, and an application fee. If relocating for a job, provide a signed offer letter. Self-employed individuals should submit a tax return and bank statements to show steady income. Being organized strengthens your rental application and increases your chances of getting your rental application approved.
Boost Your Chances with a Co-Signer if Needed
If you have low credit or poor rental history, a co-signer may be necessary. This person (often a friend or family member) guarantees the lease and rent payments if you fail to pay. They must usually also provide similiar application documents as the main applicant, so preparing these in advance saves time. If obtaining a co-signer isn't possible, consider offering a larger security deposit or higher rent if feasible. Before applying, it's a good idea to check your credit score to avoid surprises.
"...the vetting and approval process usually starts from the moment an applicant picks up the phone or sends an email to inquire about a property and schedule a showing."
Stay Within Your Budget
One common mistake renters make is applying for homes beyond their budget. Landlords typically use the rental affordability formula, which suggests that your monthly rent should not exceed 30% of your income or landlords may simply multiply the monthly rent by 2 or 3. If your gross monthly income doesn't meet this, the rent is likely unaffordable.
Impress landlords by knowing your maximum affordable rent and focusing on rentals slightly below that. For a net annual salary of $50,000, affordable rent is approximately $1,380-$2,080. The good news is that combined net income is usually what is considered. Avoid contacting landlords about properties outside your budget - searching for rentals within your financial means improves your chances of rental application approval. If unsure, try this rent affordability calculator to set a smart budget before applying.
Understand the Rental Screening Process
Renting a home or apartment is a distinct process. On one hand, you're paying for the time to use a space, but on the other, the landlord has concerns beyond your ability to afford the rent. How will you care for one of their major assets? Will you treat it like a home, or will you damage it irreparably? Will you be a good neighbor, or will you accumulate complaints and leave the landlord to handle them? Will you contact them for every minor issue during your tenancy, or only for genuine repairs? Are you easy to communicate with, or is interacting with you challenging and unplesant?
These are just some of the concerns landlords have, which is why the approval and tenant screening process often begins as soon as an applicant reaches out to inquire about a property and schedules a viewing. The HUD Tenant Rights Guide provides crucial information on fair housing laws and what landlords can and cannot consider during the approval process.
Be Honest and Professional
Nothing will cause your rental application to be denied more quickly than failing to tell the truth or, dare we say, lying on your rental application and during your interactions with the landlord. It's likely that any details you try to hide or prevent the landlord from discovering in relation to your housing application will come to light either during the application verification process or throughout your tenancy. Both scenarios lead to negative outcomes and may even result in legal consequences. By establishing honesty and transparency from the start, your chances of approval significantly improve, even if it's for something that might have initially led to a denial.
Do not hide a pet from your landlord. If found, you may lose your security deposit, face fees, and risk eviction. Report pets responsibly and pay any fees. If pets are allowed, notifying management should not harm your application. Tenants can impress landlords by respecting the application process, being courteous at showings, and dressing suitably, which presents them as responsible future tenants.
Factor in Rental Fees
Many apartment complexes and landlords require fees before and after approval. Ensure you have sufficient funds saved to cover these costs, as lacking them can give a negative impression. Advance fees may include application fees and credit check fees, and those required after approval, such as security deposits, pet fees, HOA/COA dues, cleaning fees, parking permits, broker fees, utility fees, 1st month's rent and possibly the last month’s rent. Application and cleaning fees are common pre-approval charges and are often non-refundable. Understand which fees are needed pre- and post-approval and which are refundable if leasing elsewhere. Be prepared with the necessary funds before applying to secure your desired property.
Related: Top 5 Most Overlooked Lease Clauses
Know the Market Before Negotiating Rent
As a consumer, seek the best product at the best price. However, real estate is unique, with rentals differing in quality, size, location, amenities, price, and lease terms, affecting rent and leases. Negotiating rent can save money but may lead to a declined application. It's unrealistic to expect a $1,500/month property to accept $1,200/month. Landlords might instead slightly reduce rent to attract new applicants.
Availability often hinders successful rent negotiations. A property with unique features, like a garage, won't likely lower its rent to match less equipped rentals. When negotiating, use similar rentals in your area as examples to support your case, but landlords will likely only consider your offer seriously after you've applied and are qualified. While it might work, landlords often respond with 'I hear you, why not just go with one of those other guys?' - a response with merit.
It's Not Over Until... It's Over
If you get approved, you've distinguished yourself—well done! But remember, it's not over until it's truly over. The time between approval or lease signing and moving in is often when applicants reveal their 'true colors.'
Whether it's the newfound realization of financial obligations or a sense of entitlement from being approved, some applicants raise issues not agreed upon during the approval process or the lease, develop a negative attitude, or ignore the terms discussed and agreed upon, leaving your landlord to question 'There were no issues and no concerns during the showing and approval process or even during lease signing, so why now? Who is this person?'—Ensure you fulfill all move-in requirements, such as paperwork and move-in costs, and continue to present yourself positively. Remember, until you take possession, your landlord can withdraw your approval and lease as easily as they were granted so, don't give up now.
Have a Good Attitude
This might be the most important tip! Searching and applying for apartments can be a stressful time for a prospective renter. Running around looking at multiple places and providing personal financial documents can create anxiety, which sometimes manifests in a bad attitude. Make sure to be polite and friendly to the leasing agent, landlord, or owner. Your pleasant attitude will have a direct impact on the success of your application. This one seems like a no-brainer, but from our experience, sometimes you really do need this reminder.
Final Word - For Rental Application Success
Applying for a rental property is similar to applying for a job. Similar to the ratio of qualified applicants to job openings, in many markets, there are now more interested and qualified renters than there are excellent rental properties available. If you're not interested in the job, you might arrive late, dress poorly, and make unreasonable demands. However, genuine interest requires distinguishing yourself and making your rental application stand out.
Give yourself the best chance to impress potential landlords and secure the rental of your dreams and get your rental application approved faster. By following the simple rental application tips above, you're sure to impress even the most demanding landlords and increase your chances of rental applicaton approval for that dream home.
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About the Author Ricardo Reis - Learn About Ricardo
Entrepreneur, Inventor, Investor, Military Veteran. Ricardo is a member of G3 Management & Investments a division of Great Lakes Real Estate and a real estate professional. He is a real estate professional and a successful real estate investor for over 15 years.
NOT INVESTMENT, FINANCIAL, LEGAL, TAX, OR OTHER ADVICE: This blog is for informational purposes only and not a substitute for professional advice. We do not offer advice, solicitation, recommendations, or endorsements. You are solely responsible for evaluating the information's merits and risks. Always consult a qualified professional before acting.