Are you about to rent a property from a landlord? Then the process may feel quite different from doing so with a big property management company. In fact, the overall process may feel more personal. However, it doesn’t mean that you should take things less seriously. That’s because private landlords still want to know who they are handing over the keys to. As a tenant, you need to understand your landlord’s expectations to avoid trouble. This guide can help you with it.
How Tenant Screening Works in Private Rental Agreements
When you apply to rent from a private landlord, they perform what is known as tenant screening. This is how your application is decided upon. Let’s walk through a general tenant screening process from application to decision.
As soon as you hit send on that rental application, a private landlord will jump into these screening steps:
- Identity Verification – They need to make sure you are who you say you are. This can be done by requesting a copy of your driver’s license or passport.
- Rental History – Landlords will want to know where you’ve lived previously. Did you pay rent on time? Were you ever evicted? They may very well call your old landlords to find out.
- Income Verification – Generally, landlords want to see proof that you can afford the rent. Pay stubs, bank statements, and employment letters are commonly requested to verify this.
- Reference Checks – You may be asked to provide personal or professional references. These references can be called to verify the information provided, including your rental, employment, or professional history.
- Background Check – Some private landlords will run a simple criminal background check. Each private landlord is different, and some cities don’t allow them to look at your criminal history at all.
When you deal with a private landlord, you are not dealing with a faceless corporation. There is no leasing office or HR department reviewing your application. It’s usually just one person who has to review all your documentation and make a decision. This can make things move quicker, but can also feel more arbitrary.
Landlords aren’t just giving you a home; they are trusting you with their property. Many landlords hire an Atlanta property manager to oversee multiple residential units. This makes their lives easy when managing the property.
Do Private Landlords Do Credit Checks Before Approving Tenants
Whether private landlords do credit checks varies depending on property type and location. Yes. Many private landlords conduct credit checks on potential tenants. However, some don’t, and there’s a lot of variance in how these checks are conducted.
Landlords will review your credit report to get an idea of your financial responsibility. The items on your credit report show how much debt you currently have, if you pay your bills on time, and if you’ve had any serious credit issues like bankruptcies or collections in your past.
Landlords typically want to see a credit score requirement that may vary by landlord, property, and local regulations, but rules aren’t always standardized with private landlords. Some might be flexible with a lower score if you can prove you’re a good rental candidate by way of rental history or offering to pay a higher security deposit.
Credit checks usually include:
- Payment history – Making payments on time is important. This accounts for the majority of your score.
- Amounts owed – How much of your available credit are you using?
- Negative reports – Negative items such as late payments, collections, evictions, etc.
- Length of credit history – Landlords love to see a long, stable credit history.
Landlords generally order your credit report from Experian, TransUnion, or through a tenant screening service like RentSpree or Avail. Some landlords will charge you a small application fee to help pay for the credit check.
Before landlords can pull your credit report, they must receive written permission from you to do so (Tenant rights under the FCRA). When a landlord asks to pull your credit, you’ll sign a consent form as part of your application.
Ways Renters Can Improve Their Chances of Getting Approved
Did you know renters with excellent credit scores get denied from rentals all the time? Landlords take multiple factors into consideration when you apply. Here are actionable tips to help you become a more qualified tenant.
Tip 1: Gather necessary documents
A rental application is like a job interview. Have your identification materials, proof of income, and personal references prepared beforehand. This holds you accountable and demonstrates responsibility.
Tip 2: Write a cover letter
Some private landlords really value this personal touch. Include who you are, where you work, and why you’re interested in renting the property. A cover letter will differentiate you from other faceless applicants.
Tip 3: Offer to pay a higher deposit
One to two months of additional upfront costs could work if you have poor credit or a limited rental history. It’ll make the landlord feel more secure that you can pay and won’t default.
Tip 4: Find a co-signer
If you’re renting for the first time or have subpar credit, consider having someone co-sign your application. A parent or family member can serve as a co-signer who will take responsibility if you don’t pay rent.
Tip 5: Obtain a copy of your credit report
Order your credit report from AnnualCreditReport.com before you dive into any applications. Review it for any inaccuracies and dispute any errors you find. Your credit score may be lower due to mistakes on your report.
Tip 6: Prove you have a stable income
Landlords typically want to see that your monthly income is twice or thrice the cost of rent. Provide bank statements or your tax return if you’re self-employed or work in the gig economy.
Tip 7: Communicate quickly and courteously
Respond to your landlord in a timely fashion. Whether it’s answering texts or showing up on time for a tour of the rental, good impressions go a long way with private landlords.
Final Words
Renting from an individual landlord can be wonderful. The application process is typically less corporate and more flexible. However, there are still steps you should take to prepare. Anticipate what landlords will look for when screening. Remember that your credit history will be checked, which is a great chance to start improving your chances before your apartment search begins.
