What You Need to Know Before Applying for a Rental

Finding a new rental home can be overwhelming. Whether you are moving to a new city or searching for your first apartment, understanding the process can save you time and money. In this post, we will break down everything you need to know before applying for a rental, including documentation, understanding rental application fees, and tips to improve your chances of approval.

Understanding the Rental Application Process

A rental application is a form you submit to a landlord or property management company to express your interest in renting an apartment or house. It typically requires information about your employment history, income, and rental history, as well as personal references.

Before you start the application process, gather all required documents. This typically includes:

• Proof of Identity: Government-issued ID, such as a driver's license or passport.

• Proof of Income: Pay stubs, bank statements, or tax returns for self-employed applicants.

• Rental History: Previous addresses and landlord contacts, if applicable.

  
  

By having these documents ready, you can expedite the application process when you find a suitable rental.

Rental application form on desk ready for submission

Common Requirements for a Rental Application

When applying for a rental, each landlord may have different requirements. However, there are some common factors that you need to be aware of:

1. Credit Check: Most landlords will check your credit score (soft check, meaning it doesn't affect your credit score) . A score above 650 is generally favorable. If your score is lower, be prepared to explain any discrepancies and or have a co-signer available.

   
   

2. Background Check: This can include criminal history and eviction records. Make sure to be honest on your application, as undisclosed issues may result in denial.

   
   

3. Income Requirements: Generally, landlords require that your monthly income is at least 2.5 to 3 times the rent. For example, if rent is $1,500, your monthly income should be at least $3,750.

   
   

By meeting these common requirements, you improve your chances of getting approved for the rental you want.

In what states are rental application fees illegal?

In some states, rental application fees are regulated or even banned. Knowing these laws can have significant implications for your rental application process. States where rental application fees are illegal include:

• Massachusetts: Restricted rules are in place regarding application fees. Real estate professionals can charge an application fee however, Landlords are prohibited from charging this fee.

• California: Landlords cannot charge a fee for the rental application.

• Oregon: Similar regulations apply, with limits on the amount that can be charged.

• New York City: Restricted rules are in place regarding application fees.

  
  
  
  

Always check your local regulations before applying, as this can save you unexpected expenses.

State regulations document for rental applications

Tips to Improve Your Chances of Approval

Being approved for a rental application is not just about meeting basic criteria. Here’s how you can stand out as an applicant:

• Provide a Co-Signer: If your credit score is low or you do not meet income requirements, a co-signer can help. This individual agrees to take responsibility for the lease if you fail to pay.

  
  

• Include References: Strong personal or professional references can reassure landlords of your reliability.

  
  

• Be Prepared for a Quick Decision: Rentals move fast. Having all your documentation ready allows you to submit your application promptly.

  
  

• Follow Up: If you haven’t heard back after a few days, it’s okay to follow up. This shows your interest and eagerness.

  
  

By taking these steps, you boost your potential for a successful rental experience.

Financial Considerations: What You Need to Budget For

Moving into a new rental property is not just about the monthly rent. Here are some essential financial considerations to keep in mind:

• Application Fees: Occasionally, there may be non-refundable charges when applying for a rental. Familiarize yourself with the cost structure for rental application fees in your state before applying.

  
  

• Security Deposits: Many landlords require a security deposit upfront, usually equivalent to one month’s rent. This sum is typically returned at the end of your lease if there is no damage.

  
  

• Utilities: Check if the rental price includes utilities. Some landlords may include water and electricity, while others may not.

  
  

• Renters Insurance: Some landlords may require renters insurance. It is a small additional monthly cost but can cover your belongings in case of theft or damage.

  
  

Ensure you have a clear budget that accounts for all these factors to avoid financial surprises later on.

Budget planner with rental costs for a new apartment

Final Thoughts on Renting

Understanding the rental application process and what is required can help you secure the home you desire. Be prepared with your documents, know the laws in your state regarding rental applications, and have a solid plan to improve your chances of approval.

With careful preparation, you can navigate the rental market confidently and find a place that suits your lifestyle and budget. Happy house hunting!