The 5 Crucial Parts of the Application Process when Renting an Apartment or Home

When you’re ready to rent an apartment or a home, you’ll likely have the applicant go through an approval process. This can present a challenge for some would-be renters but it doesn’t have to be a burden. You need to understand what’s considered so you make the right decision and rent to a responsible person. That’s why it’s good to know the five crucial parts of the application process when renting an apartment or home.

The 5 Crucial Parts of the Application Process when Renting an Apartment or Home

Renting comes with a lot of responsibility, particularly because it is you who owns the property. Therefore, you need to carefully screen applicants to lower your risk. Because of this, you’ll have to define a solid vetting process. But not all are the same. Some are more stringent than others, depending on the situation. In general, though, these are much the same, with little differences. Here are the five crucial parts of the application process when renting an apartment or home:

1.The applicant’s income. Okay, put this one in the “obvious” column. But, it’s worth mentioning because this will constitute a huge portion of the approval or denial. Generally, applicants need to earn 3 to 4 times of the rent amount in their gross monthly income. So, if the rent is $1,200, they will need to earn between $3,600 and $4,800 per month.

2.Their rental history. If they haven’t rented before, it's good to require a larger security deposit than others with a demonstrable rental history. Of course, if they have a good rental history, this won’t be an issue but rather, a plus. But, if they do have a spotty rental history, you’ll have to decline and move on and accept other rental applications.

3.Their credit file. Yes, it is very important to run a credit check through all three reporting bureaus. But, it’s important to not that medical debt and student loans aren’t counted the same way. So, applicants with a decent to fair credit score should be able to qualify.

4.Their background. Along the same lines is the applicant’s personal background. If they have a criminal record or even have been involved in lawsuits and/or bankruptcy, these can constitute significant obstacles. Be sure to run a thorough criminal and civil background history so you aren’t unpleasantly surprised later on.

5. Their employment history. In addition to the above, their employment history should also be examined. Renters with a good employment history are preferred to those with a spotty work record. For help with Real Estate Investments in Texas please contact http://proactivelendinggroup.com

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