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I’m currently living with my parents and looking for an apartment, but the various requirements imposed on would-be renters are very frustrating.
My situation:
I’m 24, have a college-degree, and have been working at my first “real” job for the past 18 months. I’ve never rented an actual apartment before – I’ve lived in college housing or with my parents for the last 6 years.
I’ve been rejected for all of these reasons, and now I don’t even consider other apartments that have similar restrictions (tired of throwing away $40 at a time):
1) Income: my income is rather low relative to local rents. As a result, the standard “income > 3x monthly rent” requirement means I’m shut out of many apartments. Those I can afford are often in questionable neighborhoods, would require owning a car, or are too far from work. I can afford to pay more than 1/3 of income since I would have few other expenses, but this doesn’t seem to help me in the eyes of managers/landlords.
2) Credit history/score: I have no negative marks on my credit report, but just 1 credit card (for less than a year) and no debt. My parents won’t co-sign.
3) References: I have no previous apartment manager to use as a reference. That is a deal-breaker for some managers. My boss would be happy to give one, but that doesn’t help me at some places.
4) Employer’s perceived stability: one landlord was intent on renting to someone who worked for a “big company” or the government. Even though my job is secure, I work for a small business. The landlord was not convinced. This “requirement” seemed like red flag to me, anyways.
I have enough cash to cover an entire lease, but landlords don’t seem interested in savings, only income. I have no debt or other financial commitments.
Roommates are not a viable option – of my friends/potential roommates, several have moved to other cities, many already have roommates, and the rest are unemployed.
I never realized I was such a "bad" potential tenant. Can I do something, or do I just have to get lucky and find a sympathetic landlord?
Last edited by aa85; 02-05-2010 at 05:14 PM..
Reason: bad formatting
I’m currently living with my parents and looking for an apartment, but the various requirements imposed on would-be renters are very frustrating.
My situation:
I’m 24, have a college-degree, and have been working at my first “real” job for the past 18 months. I’ve never rented an actual apartment before – I’ve lived in college housing or with my parents for the last 6 years.
I’ve been rejected for all of these reasons, and now I don’t even consider other apartments that have similar restrictions (tired of throwing away $40 at a time):
1) Income: my income is rather low relative to local rents. As a result, the standard “income > 3x monthly rent” requirement means I’m shut out of many apartments. Those I can afford are often in questionable neighborhoods, would require owning a car, or are too far from work. I can afford to pay more than 1/3 of income since I would have few other expenses, but this doesn’t seem to help me in the eyes of managers/landlords.
2) Credit history/score: I have no negative marks on my credit report, but just 1 credit card (for less than a year) and no debt. My parents won’t co-sign.
3) References: I have no previous apartment manager to use as a reference. That is a deal-breaker for some managers. My boss would be happy to give one, but that doesn’t help me at some places.
4) Employer’s perceived stability: one landlord was intent on renting to someone who worked for a “big company” or the government. Even though my job is secure, I work for a small business. The landlord was not convinced. This “requirement” seemed like red flag to me, anyways.
I have enough cash to cover an entire lease, but landlords don’t seem interested in savings, only income. I have no debt or other financial commitments.
Roommates are not a viable option – of my friends/potential roommates, several have moved to other cities, many already have roommates, and the rest are unemployed.
I never realized I was such a "bad" potential tenant. Can I do something, or do I just have to get lucky and find a sympathetic landlord?
Looks like you will have to keep looking... have you tried any social network like church, campus housing office or putting the word out through friends and family?
Not have 3 x the rent and not having a parent willing to co-sign is a definite problem as you are finding out... For many, not having a family member willing to co-sign raises the question of why not... since they know you.
I never charge an application fee because I do my own verification and view the cost of credit reports as part of the cost of doing business.
I agree that handing out $30 to $40 dollars each time gets old quickly...
Looks like you will have to keep looking... have you tried any social network like church, campus housing office or putting the word out through friends and family?
Not have 3 x the rent and not having a parent willing to co-sign is a definite problem as you are finding out... For many, not having a family member willing to co-sign raises the question of why not... since they know you.
I never charge an application fee because I do my own verification and view the cost of credit reports as part of the cost of doing business.
I agree that handing out $30 to $40 dollars each time gets old quickly...
Determination is your best bet...
Thanks for the input.
My parents won't cosign because they got hard pulls when they cosigned for my sister. They might be getting a HELOC in the near future and don't want to hurt their scores.
My friends & family are kind of poor, unfortunately. I know people who have houses for rent, but I can't afford them.
Try looking in the area you are interested in renting for a private apartment, that is a landlord renting an apartment. You can tell because the sign will not be a company. A sign outside a building will be a plain sign with a telephone number. A private LL may be easier to convince you are a worthy tenant. Keep looking, someone with your credentials will find the right LL. don;t bother with the big apartment complexes, they are run by rules, not people.
If you look in your little community paper for non-complexes you may be able to find a landlord that will rent to you. My first apartment was actually the second floor of a woman's house and it worked out great.
The only other thing I can think of would be to get some alternative credit. You could get letters from your cell phone compay and/or car insurance company and have them do up letters of credit for you. The letter will say how long you've been with them and that you always make your payments on time. You could then give those letters to prospective landlords to go along with your regular credit report.
To me it is sad that your parents won't co-sign...must be a reason for that or they aren't the nicest parents...
I do charge $ 20.- application fee per adult, but I distract it from first months rent for both adults. I'm not in the business of rental application profits, but I'm neither in the business to check applications for people who lie or aren't serious and go application hopping...as I call it. It reduced the lies and the time I have to spent on it...
His parents have an excellent reason not to co-sign; one that I personally agree with! To co-sign subjects you to a credit hit, and if you're about to apply for a loan or something, it can definitely impact the situation negatively. Not everyone can afford to take the chance.
aa85, keep looking for that private individual who has a rental, that's probably your best bet. You could offer to pay a few months up front if that's allowed in your state.
Parents not co-signing: Don't be too hard on your parents (if you are being hard on them). If they co-sign and you fail to meet your obligations, they are on the hook. Whereas if they don't co-sign and you can't pay, you can always move back in with them (most likely). My parents did not co-sign for any of my loans/rent applications/etc. It gave me a sense of responsibility that is more real than if you can fall-back on Mom and Dad to pay the bills.
Not having a big company/gov't job: That was probably just a BS excuse used by the LL instead of telling you the truth...
Which brings me to the key point here:
You might not be able to afford to either
- live on your own
- live on your own in the circumstances you'd like (better neighborhood, no need for car)
There is a reason LLs won't rent to someone making less than 3x monthly rent. Its hard to live when your rent payment plus other bills (which you will accumulate) is eating up your entire salary.
As much as it stinks, stay home and live with your parents until you are more financially ready. That doesn't just mean savings (but savings are very good). Work your way towards your career job.
I moved out immediately after I earned my degree. Best thing I did for my personal freedom and maturity. Probably the worst thing I did financially. I was probably making 2-3x more than my brother who lived home, but he took advantage of living at home, sucked up his pride and bought his house first
Hello!!! College housing IS rental history. You signed a lease agreement. You paid rent (presumably on time). You probably had an inspection when you moved out and incurred penalties if your room was not in good order. Name the school housing department as your landlord and provide their phone number.
You might also point out to your parents that harder stance they take, the longer you will be living with them. At the very least, they could acknowledge that as an adult living in their home, you are effectively their tenant and they are your landlord. Therefore you should also list their names as landlord for the dates you have lived there as an adult.
Last edited by kodaka; 02-08-2010 at 11:31 AM..
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