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Hey guys, I am in a bit of a weird situation and am coming to the internet in hopes of getting some opinions on the best approach in getting an apartment.
I'm 22, lived with my parents my entire life, and am looking to move states and get an apartment. I have no credit history , but I do have a sizable amount of money in the bank (7figs, all legal/taxes paid). I know I'll get questions about this on here, but no it's not an inheritance, I made the money myself. I've never gotten a credit card because I generally don't make large expenditures, I don't even own a car, and up until now it's really seemed unnecessary (short-term thinking, I know). I was thinking about offering a few months rent up front, but the more I've looked into this the more I've discovered that this is a red flag to most land lords. I can show bank statements/tax statements to prospective land lords, but my income is generally "unstable", and I don't have any paystubs.
I feel like I should be honest about my situation, and perhaps offer to pay a higher security deposit (3 months?), but do you guys have any tips that would make you feel better about renting to someone in my situation? To me it seems ridiculous, but should I have my parents cosign?
And before you all tell my to buy a house, I've considered it, but I need large amounts of liquid cash for my job and I honestly don't foresee myself staying in one city for very long--1-2 years--and want to start traveling in the next couple of years. I know is not an ideal tenant situation, but it's the one I'm in.
Any ideas or approaches you guys suggest will be greatly appreciated!!!
Edit: Also, I don't know if this matters, but the apartments I would be looking at would likely be large studios/smaller one bedrooms that would be in the 1.2k-2k price range.
No rental history, no credit, no job..... you are going to have to hunt hard to find a place that will take you.
You have a large savings account yet you say that you need large amounts of liquid cash for your job, so that savings account isn't really available to pay rent.
Someone will take you with either a large extra deposit or a cosigner. An older apartment building in a less nice neighborhood is your best bet. Be a good tenant, pay rent on time, don't do any damage or cause any trouble and when you leave you will have a good landlord reference, which will help immensely.
Good landlord reference is gold when you have other issues with tenant screening. I will occasionally accept an applicant with no credit score if that applicant has excellent landlord references and can prove enough income to pay the rent. So, an additional issue for you, can you prove your income is steady and from a legal source?
You mentioned "my job." WHAT job? Are you going to be self-employed or will you have an employer and be a W-2 employee? This is a critical difference.
And, were it me, I'd be applying for a credit card like, right now, online.
Applying for credit cards, but a few months credit still probably meh.
Online poker/daily fantasy, so self employed.
Quote:
Originally Posted by oregonwoodsmoke
No rental history, no credit, no job..... you are going to have to hunt hard to find a place that will take you.
You have a large savings account yet you say that you need large amounts of liquid cash for your job, so that savings account isn't really available to pay rent.
Someone will take you with either a large extra deposit or a cosigner. An older apartment building in a less nice neighborhood is your best bet. Be a good tenant, pay rent on time, don't do any damage or cause any trouble and when you leave you will have a good landlord reference, which will help immensely.
Good landlord reference is gold when you have other issues with tenant screening. I will occasionally accept an applicant with no credit score if that applicant has excellent landlord references and can prove enough income to pay the rent. So, an additional issue for you, can you prove your income is steady and from a legal source?
I have a job, just self employed.
I need ~2/3 of my net worth for my job. Too much for a house, but whatever for rent (big difference in 20k a year in rent, plus 100k depositit and paying off 400k for the next however many years). Anything in my bank account I don't use for work, but if I bought a house I'd have to move money from my portfolio or pull money off of sites, which I don't particularly want to do if I might just sell a house in a year or two.
Yes, I have all necessary documents proving where my income came from.
Quote:
Originally Posted by JONOV
Do you have tax returns proving your past income? Past tax returns plus bank statements should get you most of the way three.
Yes, I have all tax documents for the last four years.
I accepted a retired tenant who had an excellent credit score and provided a copy of his bank statement showing a sizable amount of deposits (IIRC high 6 figures). I also he had a high end house for sale (divorce sale of house), several hundred $K.
The case of the OP is a bit different. Since he is young and unemployed, I'd like to know the source of the funds and probably a few or several months bank statements, along with tax returns. If you are going to go on money in the bank alone, it's just like buying a house, they want to know where the money came from. Inheritance? Drug dealing? Temporary loan from daddy that gets taken back as soon as tenant moves in?
I'd also run a full credit check plus criminal background check.
I accepted a retired tenant who had an excellent credit score and provided a copy of his bank statement showing a sizable amount of deposits (IIRC high 6 figures). I also he had a high end house for sale (divorce sale of house), several hundred $K.
The case of the OP is a bit different. Since he is young and unemployed, I'd like to know the source of the funds and probably a few or several months bank statements, along with tax returns. If you are going to go on money in the bank alone, it's just like buying a house, they want to know where the money came from. Inheritance? Drug dealing? Temporary loan from daddy that gets taken back as soon as tenant moves in?
I'd also run a full credit check plus criminal background check.
I have detailed transaction records/bank statements/tax returns going back four years.
Edit: I also have some 1099s, plus I have an accountant who has all my records.
Being good at math is pretty profitable these days
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, but I do have a sizable amount of money in the bank (7figs, all legal/taxes paid). I know I'll get questions about this on here, but no it's not an inheritance, I made the money myself. I've never gotten a credit card because I generally don't make large expenditures, I don't even own a car, and up until now it's really seemed unnecessary (short-term thinking, I know). I was thinking about offering a few months rent up front, but the more I've looked into this the more I've discovered that this is a red flag to most land lords. I can show bank statements/tax statements to prospective land lords, but my income is generally "unstable", and I don't have any paystubs. 
Must be pretty savvy to have earned that much money at your age. 
