042- Today in PM: Making your rental application stronger

This is part 1 of a series about property management. I put this together to help young or new renters become good tenants (like Adulting 101), but I think it can be helpful for everyone. I've also included a download link at the bottom so you can save it, if you'd like.

Many of you know that my "day job" is a property manager. I thought I'd share a list of tips and explanations that I put together on how to strengthen an application for a rental. I'm hoping this will help someone when they need to apply for a rental.

There are 3 things that property managers or landlords look at when determining if someone qualifies for a rental. These 3 things are income verification, rental history, and credit history.

Income Verification- Most landlords or property management companies require a certain income factor to qualify for a rental (for example, 3X the rent in monthly, verifiable income). Know how much you can afford so you don’t get into a place that is too expensive for you. And, just because you qualify for a certain, that doesn't mean that you *should* spend that much on rent. You should still make a budget that includes your other expenses to see the rent amount that works for you.

If you have any cash income, tips, etc, and this income is needed to qualify you for a rental, provide a way to verify your cash income (letter from employer, bank statement showing you regularly deposit the cash into the bank, a ledger showing the amount you regularly earn, etc). Verifiable is the key word here. We have to be able to determine that this is a regular, reliable source of income.

If you qualify for any housing program funds (HUD, Section 8, community programs), include this info with your application. This is part of qualifying income-wise and it will help your application.

Let your employer or human resources department know that you are applying for a rental and that they may be receiving a phone call to verify income. Make sure that you provide the correct contact info for the person that will be best able to verify your income. Income qualification is important, but having long term employment history is also important. It shows that you will have a stable source of income to pay your rent.

Rental History- Assuring a good rental reference begins the day you move into a property. Here are a few tips to help you get a good rental reference going forward:

• Pay rent on time;

• Don’t let your rent payment bounce;

• Communicate with landlord about repairs needed;

• Keep your rental clean and take good care of it;

• Understand and follow contract rules;

• Be a good neighbor;

• Clean up after your pets or Emotional Support Animals;

Let your current and/or past landlords know that you are applying for a rental and that they may be receiving a phone call to verify rental history. Make sure that you provide the correct contact information for the person that will be best able to give your rental reference.

Credit History- This is also something that starts before you apply for a rental (or loan, for that matter).

• Make all payments on-time (this starts before you apply for a rental).

• Know what is on your credit report before you apply.

• If you have any delinquent or collections accounts, get them cleared up before you apply for a rental. Once you get them paid off, keep proof of the payment in case you need to provide it to explain things on your credit report.

• If there is something on your credit report that you feel needs an explanation, please provide a letter with your application.

General Application Tips- Here are a few more general tips.

Tip #1: Submit ALL documentation required when you submit your application. When info is missing, it slows down the processing timeframe. Make sure that the contact info for your past landlord(s) and employer are current.

Tip #2: Be respectful and patient towards the applications processor. They are most likely processing a lot of applications at once, and are trying to get applicants into multiple properties. They are truly trying to help you get a place to live.

Tip #3: Be prepared and have the entire move-in cost, including first month’s rent, security deposit, and any contract fees. Most landlords or property management companies will not hold a property, if you don’t have the funds available. They will likely move on to the next applicant on the list.

Tip #4: Once you have been told you are approved, make sure you view the unit. Most companies do not rent places "sight unseen" no matter how many times someone says it will be fine. Always make sure it's the right place for you before you sign the lease or contract.

This guide was written and compiled by Sarah Albin. © 2023

Disclaimer: Sarah Albin is an experienced Property Manager and Real Estate Broker in California, but she is not an attorney. This is not meant to be legal advice and should not be construed as such. Following the advice in this post does not guarantee approval by a landlord or Property Manager. This is useful information to help rental applicants.