Property management companies do thorough background and financial checks before approving a tenant.
You’ve decided to rent an apartment and have started looking at properties. Many are available through individual owners or their real estate agents. Others, especially large apartment complexes, are run by property management companies. The application process is similar in all cases; however, property management companies may delve deeper into your credit and job history to establish your worthiness as a tenant. Some may even do a criminal background check. Be prepared for a financial and personal evaluation if you want to rent through a property management company.
Application Fee
Most property management companies charge an application fee, per tenant, to subsidize the time and expense of researching prospective tenants. This is non-refundable, even if you are not approved for tenancy.
Proof of Identity
Most companies require a valid driver’s license that includes a photograph and one other valid identification such as a passport, Social Security card or a non-resident alien card. They do not hold the originals, but make copies for their files.
Income
Most property management companies require proof of your monthly earnings and verification of the length of time you’ve been employed in your current situation. If you’re relocating from outside the area, have a letter from your new employer stating your earnings and contract length. Also be prepared to provide bank statements and income tax returns. Some companies require a list of your monthly expenses and consider 75 percent expenses-to-income, before taxes, to be the threshold of acceptance.
Credit Score
You’ll have to give permission for the management company to run your credit score. A low score doesn’t necessarily mean you’ll be denied the tenancy. Rather, you may be asked to increase your security deposit as assurance against a rental default. If you know your score is low, state the fact up front. The fewer surprises the company finds, the better your “honesty” profile. Delinquencies, collections and unpaid debts and an active Chapter 13 bankruptcy may lead to your application being denied. If this is your situation, offer to pay several months’ rent up front.
References
Personal and business references, especially from previous landlords, are important additions to your tenant application. Be sure the previous landlords state the regularity of your rental payments, how much you paid and how good a tenant you were. Previous evictions may deem you unqualified.
Criminal Background Check
Many companies request a background check on their tenants to avoid unsavory candidates from moving into their properties, especially if children are located in the community. While they cannot discriminate because of race, age or family status, they do have a responsibility to their other tenants to keep the premises free from criminal behavior and illegal activities.
Co-Signer
If you are new to the rental market and don’t have a history of rental payments to back-up your application, or if your debt-to-income level is beyond the basis established by the property management company, you may be asked to supply a co-signer before they’ll rent to you. The obligations of the co-signer are to provide a back-up source for rent payments in the event you default. This is a legal obligation for the co-signer and must be handled knowing the responsibility being established between the tenant and the co-signer. The co-signer is subject to the same rental application process as the tenant.
