There’s nothing fun or easy about having a lease application denied.
Prospective leasers must fill lease applications out before renting an apartment, home, or other property, and when landlords/owners find fault with one of these applications, they usually deny it. For leasers, the trouble—besides not being able to rent the property!—is that a reason for denial isn’t typically provided.
That said, there are a few common reasons why landlords deny lease applications, and by studying these reasons, leasers can better adjust their future applications.
Let’s take a look.
First and foremost, landlords are concerned with receiving on-time payments from renters. To be sure, this point—getting paid—is the biggest source of headaches for individuals who rent properties. Accordingly, landlords are very particular about the income of potential renters; they don’t want to rent a dwelling or other area out to someone who won’t be able to foot the bill.
As a general rule, most landlords look for an applicant’s salary to be at least 50 percent more than the annual cost of rent. Thus, someone who wants to rent an apartment for $1,000 per month–$12,000 per year—would have to earn at least $1,500 per month, or $18,000 per year.
In bigger and more populated cities, this ratio increases—all the way up to 40 times one’s salary, in certain high-demand spots. The reasoning is simple: there’s more money on the line in destinations where rent rates are considerable.
A poor credit score greatly detracts from the quality of a lease application. An extensive explanation of this point isn’t necessary, as it relates directly to the latter reason: landlords don’t want to worry about being paid.
Credit scores can be boosted by promptly making monthly payments and settling outstanding debts.
A History of Evictions
Last but not least, a long history of evictions is a major red flag on rental applications. Landlords will generally understand if a renter has moved for work, wishes to rent a more accessible or appealing property, or is otherwise looking to secure a new residence.
Landlords will also understand—but they won’t appreciate—if an applicant has been evicted from one or more rental properties. Many past evictions are generally indicative of trouble—for the landlord—in the future.
These tips are sure to help renters pinpoint the issue(s) on their rental applications. Problems can then be fixed, and desirable rental properties can be secured. Remember to hang in there—it’s not uncommon for lease applications to be denied, but in the end, most leasers are able to find a home that’s right for them.
Thanks for reading, and here’s to successfully navigating the property-leasing process!