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 housing application approval other than just being able to afford the rent... although that is an important one too.
Renting is unique... it involves not only purchasing a product, also known as time, but also involves establishing a working relationship with your landlord and one of the most significant and expensive assets to most—their rental. Thus, factors beyond initial move-in costs, such as character, financial stability, payment ability, communication ease, and residential history, influence your rental application approval... and rightfully so. Fortunately, we will guide you on improving your chances of approval... let's go!
Get Organized Before You Go Apartment Shopping
When reviewing rental applicants, landlords are likely to favor those with organized and comprehensive applications. Typically, landlords will ask you to complete an application form, provide a copy of your photo ID, submit proof of income, and pay an application processing fee for verification. If relocating for a new job, ensure you have a signed offer letter from your new employer. For those who are self-employed, prepare a copy of your tax return and several bank statements to demonstrate steady income. Being well-organized reduces the landlord's workload and strengthens your application, giving you an advantage over others.
Get a Co-Signer if You Have Poor Credit or Rental History
Applicants with poor credit or rental history might need to ask a friend or family member with good credit and sufficient income to serve as their co-signer. This individual guarantees to pay your rent if you fail to do so. Landlords may wonder, 'why should we trust someone with a poor track record to pay rent on time each month if even their friends and family won't vouch for them?' The co-signer must also provide the same application documents as the applicant. Preparing these documents in advance can save you a few days of last-minute efforts. If obtaining a co-signer isn't possible, consider offering a larger security deposit or higher rent if feasible.
"...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
Deciding your budget for a new apartment or home is challenging. Showing interest in properties beyond your budget can deter landlords. A common guideline is dividing your annual salary by 40, or landlords may multiply the monthly rent by 2 or 3. If your gross monthly income doesn't meet this, the rent is likely unaffordable. Include all income sources when calculating. 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, as professionals often calculate affordability and will be disappointed if you consider homes you can't afford.
Screening Begins The Moment You Inquire
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 vetting and approval process often begins as soon as an applicant reaches out to inquire about a property and schedules a viewing.
Be Honest and Professional
Nothing will cause your 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 conceal a pet from your landlord. If discovered, you risk losing your security deposit, facing cleaning and pet fees, and possible eviction. To avoid these issues, responsibly report your pets and pay any required fees. If the property allows animals, notifying management should not affect your application negatively.
Tenants can make a good impression on landlords by respecting the application process. It's important to be courteous to property managers at all showings and meetings. Dressing suitably can also help create a strong first impression. Those who present themselves as qualified are more likely to be seen as responsible future tenants.
Factor in 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 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 your Market Before Trying to Negotiate
As a consumer, you should aim to find the best product at the best price. However... there's always a 'however'... real estate is unique. Unless it's an apartment community, you likely won't find two rentals that are identical in quality, size, location, amenities, price, and lease terms. This means that the availability or scarcity of similar properties will affect the monthly rent and lease terms of each specific rental. While negotiating rent might lead to savings, it often results in a declined application in most markets. For instance, it's unrealistic to expect a property listed at $1,500/month to accept an offer of $1,200/month. The most sensible approach, and one that most real estate professionals would recommend to the landlord, is to slightly reduce the 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. If you decide to negotiate, use similar current market examples to support your case, but be prepared for the landlord to consider your offer seriously only after you've applied and are deemed qualified. While it might work, landlords often use common sense and respond with 'I hear you, why not just go with one of those other guys?' - a rather commonsensical 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
Remember, applying for a new rental property—whether it's a house, townhouse, condo, or apartment—is much like applying for a new 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 truly interested in the job, you might show up late without a resume, dressed poorly, and make unreasonable demands. Conversely, if you're genuinely interested, it's crucial to distinguish yourself from other candidates. Give yourself the best chance to impress potential landlords and secure the rental of your dreams. By following the simple tips above, you're sure to impress even the most demanding landlords and boost your chances of being approved 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.