The Importance of Rental History When Leasing a Property

If you’ve ever rented a home or apartment, you are all too familiar with the process of filling out the application then waiting to see whether or not you have been approved. One of the major keys to your approval will be your rental history. Before filling out an application, it is a good idea to know exactly what the company or person who owns or manages the property is looking for from this perspective.

If you are just starting out, you’ll want to go with a manager or owner who understands that. Some property managers allow a stay in a college dorm to count while others have steeper requirements. The management must be able to verify you will be able to pay your rent each month. That is why it is a good idea to talk over these requirements with the manager while looking at the property. After all, you don’t want to waste your time or that of the manager. You certainly don’t want your credit run unnecessarily if you know you won’t be eligible to rent the property.

Resident screen companies use data to determine whether or not a renter will be financially worthy of signing a lease. During the screening process, a lot of data is scanned and collected. This goes far beyond just rental history. Past purchasing behaviors, job history, credit history, on-time payments, and payments that were overdue are also considered. This is why many rental applications ask for social security numbers. This small piece of information is what enables such a vast amount of data to be collected in a very short period of time.

If you have been a renter and wish to remain as such, make sure you shoot for properties that are well within your price range. Some management companies require a certain credit score to be present before a person can rent from them while others specify renters must gross at least three times the rent each month before a lease can ever be signed. No matter the exact requirements, a good rental history is essential.

Another piece of information that will also prove useful to management companies where overdue payments are concerned is the fee charged for payments that aren’t made on-time. Most companies and landlords allow a grace period of sorts, requiring rent be paid by the fourth or fifth of each month. A late fee is then charged for every day after that rent has not been paid.

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