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Tag: apartment faqs and tips

  • Living On Campus vs. Off Campus: Pros, Cons, and Everything in Between

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    Decision Day has come and gone, but it’s far from the last big choice you’ll face in college. From first-year students to upperclassmen, weighing between living on campus vs. off campus can be a hard choice. There are pros and cons to each, and several important factors to consider before taking the leap. We’ll take a closer look at all of them with you below. 

    In this article: 

    Can I live in off-campus housing? 

    Before considering off-campus living, make sure it’s actually an option. Many schools require first-year students to live on campus, and some even require it of all students. There are typically a few exemptions to these rules, but you’ll need to check your school’s website to see what their guidelines are. 

    On the other hand, some smaller colleges or online universities may not offer on-campus housing at all. So if you’re set on moving out of your childhood home, you’ll want to look for off-campus housing. 

    Pros and cons of on-campus housing

    Whether you’re required to live on campus or just not ready to take on renting for the first time, on-campus housing is still a great option. We’ll talk about the upsides and the downsides to help you prepare for the year so you can make the best choice between living on campus vs. off campus. 

    Pros 

    • Proximity and convenience: Living on campus means you’re right in the middle of everything. From classes to extracurriculars, the whole college is at your doorstep.
    • Campus amenities: Libraries, gyms, study lounges, cafeterias, and more are much easier to access when you’re living on campus vs. off campus. 
    • Easy to meet people: Living in a community like a dorm or campus apartment gives you more opportunity to meet other students. Some of those friendships can even turn into future roommates when the time comes to move off campus. 
    • Simplicity: Many schools include the cost of utilities, Wi-Fi, laundry, and more in the total cost of room and board, and payments are often one and done. 

    Cons 

    • Can be expensive: The average cost of room and board at a 4-year college is $12,986 annually, which doesn’t include the added expense of a dining plan. 
    • Little privacy: With small rooms and communal bathrooms, there is little opportunity for a moment alone in the dorms. Unless you’re able to get a single, you might also have multiple roommates sharing your space. 
    • Noisy and harder to focus: Dorms are great for socializing, but it can be hard to focus among activities or noisy neighbors. Quiet hours help, but a neighbor who doesn’t have an exam the next day might not be as concerned with their loud music as you are.
    • Less choices on housing: Lots of universities, especially larger ones, use a lottery system to assign housing. You might have your heart set on the newly renovated dorm, but you could end up with a random assignment that wasn’t on your wish list. 
    • Roommates: While you might get lucky and find someone that matches your lifestyle and personality, the wrong roommate can throw a wrench in your college experience. Avoid the random-roommate lottery and ask lots of questions to make the right choice. 

    Pros and cons of off-campus housing 

    Living off campus is a great first step towards independence and learning how to rent your own home, but it can also be a lot to manage. Before deciding between living on campus vs. off campus, consider the pros and cons carefully to determine whether this is the right choice for you while navigating college. 

    Pros 

    • More housing options: There are lots of different types of rental properties that could work for you depending on location or roommates. Use Redfin.com to search for housing with filters for number of rooms, ideal price range, and more. 
    • Can be less expensive: You can create your own budget rather than pay the fixed costs and meal plans of most on-campus housing. Roommates can also help split costs. 
    • Independence: Less supervision or campus rules means more freedom to enjoy your space. You might even be able to use your favorite candles or paint a wall. 
    • More space: Depending on the type of rental you choose, you could have a kitchen or even a living room space to spread out or host your friends for study parties. 
    • More privacy: Having a little privacy goes a long way, and getting the bathroom to yourself or even having a door between your room and the rest of your rental space can do wonders for both your comfort and concentration. 

    Cons 

    • Increased responsibility: You’ll have a lot more to manage on your own with off-campus living. Paying rent and utilities on time, managing groceries and cooking, and keeping your living space clean are all part of your responsibility as a renter. 
    • Can feel more expensive upfront: Most rentals require first and last month’s rent and a security deposit when you sign your lease. In addition to furniture, textbooks, and tuition, this can feel like a lot, and might require a smaller budget for a little while. 
    • Commuting to campus: Depending on how far away your off-campus rental is, you might need to consider an increase in your commute time and cost. 
    • Difficulty finding housing: Off-campus housing can fill up quickly, so timing your search right is key to securing a rental before the school year starts.
    • Can feel isolating: Being away from campus can make your friends and campus life seem harder to access. Keeping your college experience enjoyable and sociable might require a bit more effort. 

    Three students sit around their rental apartment chatting. When considering between living on campus vs. off campus, they decided to rent an apartment off campus together.

    5 things to think about before deciding 

    There are a few things to consider before you jump into off-campus life. Each one will help you narrow down your search window and help you make the final decision between living on campus vs. living off campus. 

    1. Roommates

    Choosing a roommate is one of the biggest decisions you’ll make in college, and that decision becomes even more critical when you sign a lease together. Having one or multiple roommates is a great way to cut costs as well as have in-house support through your college years. However, you’ll want to make sure your friends are compatible with your lifestyle, as well as reliable for paying rent on time. 

    2. Budget 

    Whether you’re working your way through school, using student loans, or getting help from home, creating a detailed budget for rent will set you up for an easy off-campus living experience. Even if you decide to live on campus, keeping to a budget and tracking expenses will help prepare you for buying a home in the future. Roommates can help you cut costs, and having a co-signer or a guarantor to back you up on the lease will encourage landlords to accept your applications. 

    3. Lifestyle and priorities

    You know yourself best, and choosing between living on campus vs. off-campus is a personal decision. Check in with your top priorities and how well each housing option balances with your courses. Weigh your wants against your needs to find the best middle ground that will work for you. 

    4. Transportation

    If you want to live off campus, you’ll need to consider how you’ll get to class. The farther away your rental is from campus, the more you’ll likely need to budget for transportation. Some rentals require payment for parking a car, and gas can get costly if you’re driving back and forth a lot. Public transportation, where available, is typically the cheaper option, and some schools even have free student passes for local transit. 

    >> Read more: The 10 U.S. Cities With the Best Public Transportation

    5. Flexibility

    Some landlords will be willing to offer a shorter term lease to fit the academic schedule, but most typically last a year. If you’re planning to stay near campus for work or summer courses, a 12-month lease might be convenient. You may even be able to renew your lease for another year and avoid the yearly college moving cycle. For those wanting to return home and save on rent over the summer, ask prospective landlords about lease lengths, or subletting and subleasing options. With a subletter or subleaser, you can avoid moving all of your furniture and return to the same rental once the school year starts up again. 

    Proximity to campus amenities and common areas can be a pro of living on campus vs. off campus. Students sit on a large campus green space in groups across the lawn.

    Living on campus vs. off campus: Which should I choose? 

    Making a choice between living on campus vs. off campus is not one to make lightly. There are pros and cons to each, and lots of things to consider. The most important thing to think about is what will be best for you. Luckily, there is no right or wrong way to have the college experience. No matter which choice you make, it will be uniquely yours. 

    FAQs about living on campus vs. off campus

    Is it cheaper to live on campus or off campus? 

    The cost of living on campus vs. off campus is highly dependent on school, location, and lifestyle. For example, a university in a city with a high cost of living might have cheaper on-campus options, but a stricter budget or multiple roommates can offset the cost of rent to make off-campus housing a more attractive option. 

    Can financial aid pay for off-campus housing? 

    Yes, financial aid can pay for off-campus housing. Cost of living is factored into a school’s estimated Cost of Attendance (COA). After tuition and other fees have been paid, your school will disburse the remaining amount as a direct deposit or check to go towards your off-campus housing costs. 

    Can student loans pay for off-campus housing? 

    Yes, student loans can pay for off-campus housing. Student loans are a type of financial aid, and follow a similar process to what we’ve mentioned above. However, student loans are expected to be paid back with interest, so be sure to budget carefully. 

    How much is the average rent? 

    The average rent in the U.S. is $1,785 per month, but can vary by city. A hub like San Francisco, CA, can see upwards of $3,000 per month, whereas a smaller town like Wichita, KS, could see sub $1,000 prices. This variation is largely due to location and the broader economy of a city. 

    Can I get a lease that is less than a full year? 

    Yes, you can get a lease that is less than a full year if you don’t want to live in your rental outside of the academic year. You can ask about short-term leases or month-to-month rental agreements. When considering a month-to-month lease, be aware that it’s a two way street: while you can terminate your lease at any time with the proper notice, so can your landlord. 

    >>Read more: Can a Landlord Break a Lease Early? 

    Can I still be involved at school if I live off campus? 

    Yes, you can absolutely still be involved at school if you live off campus. Even though your school may not be right outside your door, you can still participate in campus activities, use most campus amenities, and, of course, go to class. You might just need to make a more conscious effort to be on campus more often if you don’t live there.

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    Kaitlyn Neitman

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  • Study in the USA: How to Rent an Apartment as an International Student

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    Key takeaways: 

    • You can rent an apartment as an international student in the U.S., but may need a co-signer or guarantor. 
    • Gather required documents early, including your passport, visa, and proof of enrollment. 
    • Create a budget that covers rent, utilities, food, transportation, and personal expenses. 
    • Research neighborhoods, know your tenant rights, and read your lease carefully before signing. 

    Beginning the search for off-campus housing is a thrilling adventure for any college student, but for international students, renting in the United States for the first time can be especially intimidating. Luckily, the excited glow you’ve been sporting from your acceptance letter doesn’t have to be dulled by nerves. 

    With so many great universities in the United States, you could be looking for an apartment anywhere between New York, NY and San Francisco, CA. From knowing what documents you’ll need, to understanding the rental process, to finding the perfect apartment near your new campus, this Redfin real estate guide is here to help you rent an apartment as an international student. 

    In this article: 

    Can I rent an apartment as an international student? 

    Yes, you can rent an apartment as an international student, although you may encounter more challenges during the process. Many students moving internationally choose to live on campus or with a host family.

    These options may provide more structure and support from your school’s international student program. However, if living off-campus on your own is an important part of your college experience, we’ll walk you through the most important steps – and important things to look out for – along the way.

    How to rent an apartment as an international student 

    There are a lot of great tips for first time apartment renters, but moving internationally requires extra planning and attention to detail throughout the process. The steps below outline the basic necessities for renting as an international student:

    1. Determine a budget 

    Creating a realistic budget is an essential step in any home search, and is especially crucial for college students. As an international student, you’ll also need to consider how currency exchange rates might affect your cost of living. Look into prepaid foreign exchange (forex) cards or opening a local bank account to help manage fluctuations. 

    When budgeting for your cost of living, be sure to include the following: 

    • Monthly rent and utilities: Some apartments include the cost of utilities in their total monthly rent. Ask whether utilities are included to make sure you stay within your planned rent budget. 
    • Internet connection: You’ll most likely need to access your coursework from home, so don’t forget to add internet costs to your budget. 
    • Transportation: If your campus does not offer a transit pass or you’re living far enough away to commute, be aware of local fares or costs of parking permits.
    • Groceries and food: Consider local store prices and how often you want to go out to eat or grab a late-night study coffee when building a food budget. 
    • Personal expenses: Tuition and textbooks should be first on your overall study-abroad budget, but set aside some fun money to aid in your experience of the local culture. 

    2. Prepare documents in advance 

    Have all of your documents organized and ready to go first. Here’s what you’ll need to show a landlord if you’re renting as an international student: 

      • Proof of identity: You typically need to show your passport or government-issued photo ID to rent an apartment in the United States. 
      • Proof of enrollment: School documents such as an official class schedule, transcript, student ID card, or enrollment verification letter can serve as proof of enrollment. 
      • Valid student visa: You’ll need to obtain a student visa to both study in the U.S. and show proof of lawful presence on your rental application. Your school’s international student program can help you learn more about the visa application process. 
      • Proof of income or assets: Most apartments have an income requirement for renters. This ratio is often set between 2 to 3 times the monthly rent cost. This can be a challenging hurdle for many prospective renters, and especially for college students. Getting a co-signer or guarantor will help make your application more attractive to a landlord. 

    3. Get a co-signer or guarantor 

    If you don’t have a steady income or American credit, don’t worry, there are still ways you can rent an apartment as an international student. In fact, most students who are just starting out with off-campus housing use a co-signer or guarantor. Both provide financial security to landlords and assume the responsibility of paying the rent if you cannot pay yourself. 

    Co-signers also sign your lease, and are identified as tenants with the same legal rights to the apartment as you. They can be a roommate or a personal contact, but must meet the basic requirements, such as good to excellent credit and proof of employment with a steady income. Some employers may accept co-signers, like a parent or other family member, who lives out of the country, but it’s important to ask for their specific requirements upfront before getting too far in the process. 

    Guarantors, on the other hand, are typically a third-party service. They do not have access to the apartment, and only step in if you default on your rent. While a person you know and trust can be a guarantor, the financial requirements are much higher than those for a co-signer. Ask your landlord for their specific guarantor requirements first. Some landlords either do not accept guarantors or will only work with certain third-party companies.

    4. Research the neighborhood and the property

    Whether your school is near a classic college town or a major city, researching the nearest neighborhoods is essential. You might want to know the top things to do in Boston if you’re Harvard-bound, but you’ll also need to prepare for the competitive markets. Enlisting the help of a broker, or rental agent, while not technically required, is extremely beneficial in certain cities in order to quickly find the right apartments, avoid scam listings, and get a good deal on rent costs. Be sure to budget for broker fees if you end up using a rental agent. 

    Regardless of where you’re looking, it’s always a good idea to tour the neighborhood and the property in person. Combine a campus visit with an apartment search if you’re able, or request video tours from listing agents and landlords. When you do move in, take photos of everything to record the current state of the apartment. This can help you recoup some costs of your security deposit when you’re ready to move out. 

    5. Understand your rights as a tenant

    Every renter has rights that protect them on local, state, and federal levels. Familiarize yourself with both federal tenant rights and local tenant rights when you know where you’ll be renting. Knowing what is protected and allowed by both you as a tenant and your landlord will help set your expectations and provide peace of mind during your housing search and tenancy. 

    6. Review your lease agreement thoroughly 

    Your lease agreement should outline all of the information about the residence you will be renting, including: 

    • Names of your landlord, your co-signer or guarantor, and all tenants
    • The address and condition of the property 
    • The duration of the lease, its beginning and end date, and renewal policy
    • Agreed upon rent rate and utility costs
    • Rules and policies, like quiet hours, pets, and parking
    • Maintenance and repair policies 
    • A signature section for all parties 

    Thoroughly review each section before signing the lease to make sure everything aligns with what you’re expecting. If you have any questions, speak to your landlord to make sure you’re both on the same page before proceeding. 

    Students walking on a university campus at golden hour.

    Where to look for off-campus housing 

    Your university is a great place to start your off-campus housing search. Many schools have resource pages for international students moving to the U.S. to help with documents, roommate searches, and housing searches. 

    Once you’re ready to look for listings, use a national rental website like Redfin, ApartmentGuide, or Rent.com. Local social media pages and neighborhood message boards can also be a good source of local listings, but be extra careful of rental scams. 

    International student housing FAQ

    How much does it cost to rent an apartment in the United States?

    The average monthly rent in the U.S. is $1,789, but the cost varies widely depending on multiple factors, such as location and type of residence. Research the neighborhoods near your campus to gain a better understanding of average local rent costs. 

    What documents do I need to show my landlord?

    Your landlord will need to see proof of identity, enrollment, legal residency, and income. Your university should provide you with enrollment documentation and may even be able to direct you on how to obtain a student visa. 

    Do I need a Social Security number to rent in the U.S.? 

    No, you don’t need a Social Security number to rent in America, as you can provide other proof of identity. You will need to provide proof of legal residency, however, which your student visa will show. 

    What if I don’t have any local credit history? 

    If you don’t have local credit history, use a co-signer or a guarantor. Having a third party, whether it’s one person or a company, to back up your rent will provide landlords with the financial reassurances they need to accept your application. 

    Does my co-signer or guarantor have to live in the United States? 

    Whether your co-signer or guarantor is required to be local is highly dependent on the landlord’s policies. Many landlords do require them to be local, so ask about these details upfront to save time and prepare correctly. 

    Is it better to live on campus or in a homestay instead? 

    Renting as an international student can be a complex process, but it’s not an impossible feat. While on-campus housing or homestays provide a unique level of convenience and support, you can still find a great apartment close to campus and central to exploring your new city as well. Ultimately, deciding where and how to move to the U.S. for college is a highly personal choice. It’s up to you to decide what the best option will be for your situation. 

    International moving can be stressful, but you can do this 

    Housing for international students requires a bit more planning and research, but if renting an off-campus apartment is high on your college experience list, it’s certainly doable. Whether you’re searching for homes on Redfin with a roommate or embarking on a solo journey, you’ll be ready to rent with the steps above to guide you.

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    Kaitlyn Neitman

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  • Ask Our Chief Economist: What Is a Rent Concession? How to Ask, Negotiate, and Save on Your Next Apartment

    Ask Our Chief Economist: What Is a Rent Concession? How to Ask, Negotiate, and Save on Your Next Apartment

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    Key takeaways

    • Rent concessions are generally one-time incentives, like three months of free parking, six weeks of free rent, or a waived security deposit
    • Concessions can be great for a renter’s budget by reducing short-term housing expenses, but can lead to surprisingly high costs when it comes time to renew
    • Landlords are more likely to offer concessions when rents are flat or falling, or when demand is low, to attract tenants without lowering rents

    Rents are starting to fall in some pockets around the country, which is good news for renters and a stark contrast from the pandemic-induced record highs. This is because more new apartments continue hitting the market, causing supply to outpace demand. Rents are falling the most in metros that are seeing the biggest gains in supply. 

    But for landlords, too much supply often results in higher vacancy rates. When this happens, they may offer rent concessions to attract tenants and fill units faster. That’s what’s happening now, and is why more than one-third of landlords offered at least one concession in July. These concessions are designed to make leases more appealing without permanently lowering monthly rents.

    Renters may now find themselves in a negotiating position, with opportunities to score a better deal if they know what to look for. But knowing how to spot concessions – and when to take advantage – can be tricky. So what exactly is a rent concession, and how can it benefit you as a renter? 

    We asked Redfin’s Chief Economist, Daryl Fairweather, to help answer some common questions for renters. Let’s dive in, uncover answers, and learn tips along the way. 

    What is a rent concession?

    A rent concession (also called a lease concession) is a temporary discount or incentive that landlords can offer to make a rental more attractive. “Concessions are a way of sweetening the deal for renters without reducing rent,” says Fairweather. “They might include a free month of rent, waived security deposits, or waived fees like application or parking fees.”

    Landlords typically use concessions to fill vacancies more quickly or stay competitive in the market. While these one-time offers can help lower a renter’s upfront costs, they generally don’t affect the longer-term monthly rent, so it’s important to review the terms carefully before signing a lease. 

    Rent concessions vs discounts

    Rent concessions and discounts both offer financial relief, but in different ways. Concessions are temporary perks, like a free month of rent or waived fees, without lowering the monthly rent. Discounts, however, reduce the monthly rent for the duration of the lease, providing ongoing savings.

    Types of rent concessions

    Rent concessions vary widely and can offer savings or added value to renters. You may be offered one or more concessions, depending on your landlord, lease, and any negotiations. 

    Common types of rent concessions include:

    • Free rent: A certain number of months offered rent-free, typically at the start of the lease.
    • Reduced rent: A temporary reduction in the monthly rent for a specific period.
    • Waived fees: Landlords may waive application fees, administrative fees, or move-in fees.
    • Discounted security deposit: A lower security deposit than what’s typically required.
    • Free amenities: Access to services like parking, gym, or storage at no additional charge.
    • Lease flexibility: Offering shorter or more flexible lease terms without the usual premium.
    • Upgraded unit features: Free or discounted unit upgrades, like appliances or flooring.

    Financial consultation with financial advisor

    How to ask for a rent concession

    Asking for a rent concession involves research, negotiation, and documentation. Here’s a breakdown.

    1. Research the market

    If you’re a renter on the hunt for a new apartment, research is vital. Fairweather suggests, “shopping around for what other properties are offering before advocating for concessions from a potential landlord.” This helps you understand the market and gives you a better position when negotiating.

    2. Make a clear request

    Prepare a clear request explaining the current market conditions and be specific about the concession you’re seeking. Whether it’s a reduced rent or waived fees, having the data to back up your request is essential.

    3. Negotiate lease renewals

    If you’re looking to renew your lease with an additional concession, communication is key. Explain how the concession would help you stay longer, and bring market data if necessary. Be open to negotiation and flexible with alternatives if your initial request isn’t feasible.

    4. Document the agreement

    If you and the landlord reach an agreement, make sure the concession is reflected in the lease or added as an addendum. Review all terms carefully before signing, and plan for future expenses when the concession period ends.

    Rent concession considerations for renters

    Rent concessions can make a property more affordable initially, but renters could see a significant increase in overall housing costs once benefits expire. So, it’s important to plan ahead. Here are a few considerations to keep in mind. 

    Calculate the total value of a concession

    To grasp the full benefit of the concession, translate it into a monthly expense and multiply it by the number of months you receive it. A waived security deposit of $1,000 is an immediate $1,000 saving, whereas $60 waived parking for three months is worth $180.

    Anticipate increased expenses once concession ends

    This is crucial. “You could see a large increase in your overall housing expenses once the concessions expire,” cautions Fairweather. For example, if parking costs $60 per month, and you have free parking for three months, that’s a total savings of $180. After the concession, you’ll need to start paying that $60 monthly fee, which increases your housing expenses.

    Look at the fine print

    Notice clauses that might make the concession less valuable in practice, and be a stickler for details. Free parking for 1 month versus 12 months is a big difference, after all. 

    Prepare your budget

    Make sure you aren’t under budgeting or overspending. “You should be ready for increased costs after a concession ends,” continues Fairweather. “A waived security deposit won’t matter at lease renewal time, but waived amenity fees could become an expensive ongoing expense.” Adjust your budget accordingly to improve your finances throughout your lease, and know how much rent you can afford.

    Why do property managers offer rent concessions?

    Property managers might offer rent concessions for a variety of reasons. More often, they’re used to attract new tenants in a competitive market with high vacancy rates. Landlords might also provide concessions to retain existing tenants, reduce turnover costs, or respond to economic downturns.

    Additionally, “Some places restrict rent increases (rent control),” Fairweather points out. “But landlords can still factor in an effective rent increase by offering a concession for just one year, like free parking or a few months of free rent, while still raising the base rent.”

    In this case, while the tenant’s overall payments during the lease remain the same, the official rent listed in the lease will be higher. If the tenant then decides to renew their lease, their monthly payments might rise substantially, unless they negotiate for additional concessions. 

    Why are concessions so common right now?

    New apartments are filling more slowly (absorption rate) than in the past two years due to an imbalance of supply and demand. Many landlords are responding by offering concessions to stir up interest. This trend is largely due to the surge in construction that occurred during the pandemic, which has led to an oversupply of inventory today. 

    So, as new apartments keep entering the market and supply outweighs demand, rents have flattened or even begun falling in some places. “When rents fall or hold steady, concessions become more common,” adds Fairweather. 

    In Sun Belt cities like Tampa and Austin, supply far outweighs demand, so a greater percentage of landlords are offering concessions. Nationwide, one-third of property managers offered concessions in mid-2024. 

    Concessions can also improve the long-term rental market by helping property managers entice new tenants in times of low demand. “They’re a way of breathing life back into their own market, in a sense,” she notes. 

    How to find concessions on an online rental listing

    Finding incentives and concessions on an online marketplace is easy. Most will indicate that a listing is a good value or offers incentives.

    On Redfin, for example, any listing that offers incentives will have the “Deal” watermark on the photo.

     rent-concessions

    When you click on the listing, you can find a more thorough description of what they’re offering. 

    rent-concessions-3

    You can also filter to only show listings with deals or promotions

    rent-concessions-2

    When in doubt, call the property manager or landlord to clarify what incentives they’re offering. Their phone number should be on the listing.

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    Jamie Forbes

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  • How to Screen Tenants: Step-by-Step Guide to Screening Renters

    How to Screen Tenants: Step-by-Step Guide to Screening Renters

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    When listing your home for rent, there’s plenty to do like creating an application, finding tenants, and signing a lease agreement. One thing you’ll need to learn about is how to screen tenants during the application process. 

    In this Redfin article, we’ll give you the step-by-step guide to screening renters, from setting application requirements to pre-screening tenants and verifying their information. Whether you’re renting your home in Austin or renting your condo in Chicago, read on to find out how to screen tenants. 

    1. Understand Fair Housing laws

    Before screening any potential tenants, you’ll need to understand Fair Housing laws. While you can choose the renters that fit your requirements, you still need to follow local, state, and federal laws. Under the Fair Housing Act, you can’t reject a tenant based on race, color, national origin, religion, sex, familial status, or disability. 

    Some states have additional protected classes and laws preventing housing discrimination. Familiarize yourself with local and state laws to make sure you’re not inadvertently rejecting a tenant based on protected classes.

    2. Set application requirements

    By setting application requirements, you can better objectively determine the best tenant for your property. Here are some things to consider when setting up your qualifications.

    Income

    It’s common to set income requirements for your property to ensure that tenants are capable of paying rent on time. Many landlords use a rent-to-income ratio to determine income requirements for their applicants. You want to make sure that any prospective tenants are going to be able to cover rent costs without stretching their budget too much. Choosing an income requirement that’s disproportionate to the area you’re renting in may cause your property to stay vacant longer than you’d like. 

    Credit history and score

    Many landlords require a higher credit score, often above 670. This means you’re often looking for tenants who have a credit score in the good range or better. Higher credit scores can be indicative of a more reliable tenant who pays bills on time. However, someone with a lower credit score isn’t necessarily unqualified to rent your home. It’s possible that they’ve recently begun building their credit or have unpaid debts, like student loans. 

    You can read their credit history, ask questions, or ask for references if you want to have a lower credit score requirement for your property. Potential tenants may also have a good rental history report that supports their ability to make on-time payments – even if they have a lower credit score. 

    Previous evictions

    You may want to require applicants to disclose any prior evictions. If an eviction appears during your screening process, consider asking for additional details and requesting permission to contact the previous landlord or property management to better understand the circumstances.

    Criminal history

    Set clear guidelines on how criminal history will be evaluated. While certain convictions, like a DUI, may not be valid grounds for denial, more serious offenses—such as arson—could be. It’s important to ensure that any criteria for denial are based on safety concerns and legal standards. Consult with an attorney to clarify what qualifies as a “dangerous criminal conviction” under the law.

    3. Pre-screen renters

    While pre-screening renters may sound like you’re interviewing them before they submit the application, that’s not the case. The way you pre-screen tenants is through the rental listing itself. Some information you might include:

    • Monthly rent
    • Security deposit
    • Application fee
    • Background check
    • Credit report fee (if applicable)
    • References from previous landlords
    • Smoking policies
    • Pet policies and pet rent
    • Any additional rules

    Listing out information allows tenants to decide whether they want to apply to your rental. For example, if a tenant has multiple pets, and you don’t allow pets in your rental, they likely won’t apply, saving you both time and money. 

    People discussing how to move their house

    4. Create an application

    Having the same application for all applicants is a great way to keep the tenant screening process fair and objective. You’ll need to request information like their current address, employment history, current and previous landlords, references, gross and monthly income, monthly debt payments, and any information about pets. To streamline this, you can use a template or online form builder to ensure consistency. All this information can help identify qualified tenants and help you follow Fair Housing laws. 

    5. Run a credit check

    Running a credit check can be more than just seeing an applicant’s credit score. It can also show any bankruptcies (up to 7-10 years later, depending on the type of bankruptcy), late or missed payments, and other financial problems. You can also use a credit check to verify their name, past addresses, current and previous employers, and date of birth. 

    For more information, you can ask tenants to submit a credit reference. Depending on what the credit report details, you can consider asking the tenant to have a cosigner or a higher deposit amount if you have concerns about their financial situation. 

    6. Conduct a background check

    Another important part of the screening process is to conduct a background check on potential tenants. Running a background check will identify any criminal records and public records, such as court cases. If an applicant’s background check shows violent criminal records, you may be able to legally reject their application. However, certain types of criminal behavior are not legal reasons to turn down an applicant. You’ll need to evaluate each tenant on a case-by-case basis to ensure you’re following any laws – and making the right decisions. 

    what-is-fair-housing-2

    7. Verify other information

    There are other types of information that you’ll need to verify. This includes W-2 forms, recent pay stubs, and speaking with their employer. You can also reach out to their current or previous landlord to learn more about their payment history. Or you can contact any personal references they’ve included on the application. 

    8. Meet potential tenants and ask questions

    It’s not a requirement to meet potential tenants, but if you would like to learn more about them, you can. However, there are plenty of questions that you can’t ask them, as it can violate Fair Housing laws. Here are some example questions to ask:

    • What is your intended move-in date?
    • Why are you moving? 
    • How long do you intend to stay? (ex. 6 months, 12-months)
    • How many people will be living here?
    • Do you have any pets?
    • Do you smoke?
    • Do you have any prior evictions?
    • How many parking spaces are you looking to have?

    Meeting applicants in person or speaking with them on the phone can also give them the opportunity to ask you about the home’s features or any additional questions. 

    9. Decide on tenants

    Once you’ve collected all the information on your prospective tenants, you’ll need to evaluate each one objectively. It can sound like a difficult task, but there are some tips that can make it easier.

    Follow the requirements you’ve listed above – these can highlight which tenants fit your criteria. Don’t judge applicants based on subjective criteria, which in most cases is illegal. Consider leasing to the first tenants that meet your criteria. For example, if you have nine potential tenants who all meet the criteria, consider choosing the first person who applied, “first person, first served.”

    At the end of the day, creating clear guidelines for screening tenants can help you keep the process objective. Finding the right tenant takes time, but following a streamlined process can make the screening potential tenants easier.

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  • What is a Credit Reference on a Rental Application?

    What is a Credit Reference on a Rental Application?

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    When you submit your rental application, you want to make sure you stand out as a quality tenant. One of the ways you can showcase the positive aspects of your application is by adding a credit reference. Not only can a credit reference attest to your creditworthiness as a renter, but it can also give a potential landlord additional information about you. 

    In this Redfin article, we’ll explain what a credit reference is and what to include in it when submitting your rental application. Whether you’re renting a home in Dallas or an apartment in Orlando, find out how you can make your application the best it can be.

    What is a credit reference?

    A credit reference is a document that attests to the creditworthiness of an applicant. The letters can come from a variety of sources, but their goal is the same — to provide detailed information proving you make on-time payments when bills are due.

    When applying for a rental, the landlord or property management company may already have reference requirements in place. If they don’t, you can consider offering these supplementary materials. Just make sure to choose credit references who will speak positively about your credit history.

    If you don’t have a strong credit history or you have outstanding debt, credit references can double as character references or employment references. Both can help show you’re a responsible tenant.

    When do you need credit references?

    Since credit references can expand on your payment history, and demonstrate your likelihood of making timely payments, there are a few scenarios you may want to use them. This can include applying for a loan or opening a new credit card. Of course, they can also be a key piece in the rental application process.

    These references not only shed light on an applicant’s credit history but also help landlords get an idea of your creditworthiness and whether you’re likely to pay rent on time.

    Can they replace credit reports?

    Credit scores are the most concise way for landlords to get an idea of your payment history and whether you’re missing payments, like from previous leases or other debts. However, credit scores don’t have additional details, just facts.

    Credit reports come from the three main credit bureaus, TransUnion, Equifax, and Experian. There’s no character reference attached to your credit score, and credit reports often leave out information about extenuating circumstances that led to you making a late payment.

    As a result, credit references can help fill in the blanks. They provide the specifics that can help a landlord understand what happened. For example, if you have a ding on your credit report for not paying a month’s rent on time, but your check got lost in the mail, a letter from your previous landlord could clear that all up.

    Most landlords will still want to see a credit report, so think of your credit references as a supplement rather than a replacement.

    Two people talking about condos

    How to choose credit references

    When choosing credit references, it’s important to ask people who will speak positively about your credit history. Choices might include:

    • A previous landlord
    • Utility companies
    • An employer
    • Financial institutions or any previous lenders

    Poor references might include:

    • A family member or friend
    • A former boss you haven’t spoken to in years
    • An ex-spouse

    A previous landlord could also be a bad credit reference if you had any issues with them. This includes issues with payments, but also just getting along in general.

    Friends and family members will most likely say good things about you, but because of their personal connection to you, won’t always be considered a reliable choice. Although friends and family are great to ask, they won’t carry as much weight as an employer, coworker, or past landlord.

    Character references

    If you don’t have a credit history and need someone to provide a character reference, you may instinctively go to your friends and family. If possible, reach out to a coworker, neighbor, or even someone you volunteer with instead. They can offer a more unbiased opinion of your character.

    What’s included in a credit reference letter?

    When asking people to write credit references for you, let them prepare a letter and that you’ll add in relevant information. Make sure any reference letter has:

    • Your name
    • Current address
    • And email and phone number

    Make sure the letter is going to your prospective landlord, so ask whoever is writing it to include your landlord’s name, address, and email. You may even want to send them sample letters to make it easier to write one for you.

    If you’re simply responding to a request for credit references by providing a landlord with a list of contacts, make sure each entry has their:

    • Name
    • Contact information
    • Relation to you

    For example, if you were listing your current landlord, the entry would look like this:

    Mr. Joe Landlord, joeland@landlord.com, Current Landlord

    Lease agreement

    Other forms of credit reference

    There are several different types of credit references that support credit reports and your actual credit score. They don’t necessarily have to be a note written by a specific person. Supporting documents can also add depth to your personal financial situation.

    Additional supporting documents include:

    • Checking or savings account history
    • Public records
    • Retirement funds statement
    • Pay stubs and/or W-2 forms

    Each of these different forms and documents may positively impact your application to a potential landlord. They add greater detail to your credit history that goes beyond a single number. All these documents come together to help establish your creditworthiness.

    Financier support documentation

    A credit reference may also come in the form of financial support documentation. This type typically comes from a family member or friend who agrees to co-sign your lease agreement or act as a guarantor for your rental payments. This type of reference is particularly helpful if you don’t have strong credit references and are trying to counter negative items in your credit history.

    Employment references

    Employment references are another type of credit reference used to show that you’re a responsible tenant. A current or previous employer can provide an employment reference, but make their letters include your job title, dates of employment, and salary.

    Asset documentation

    Asset documentation is a type of credit reference that shows your financial stability, which translates to your ability to pay rent. It includes bank statements, investment account statements, and retirement account statements.

    Rental history

    Your rental history is another type of credit reference that landlords may check. Your rental history includes information about your previous rentals, such as whether you made your payments on time, how long you stayed in each rental, and whether you left behind any damages.

    Utility services references

    Utility references help demonstrate your ability to pay bills on time. They include information about your electricity, gas, water, and trash bill payments. Rent is just another bill when you get right down to it, so your pattern of payment with these smaller bills can help influence your creditworthiness for bigger ones.

    When in doubt, include a credit reference letter

    A credit reference adds depth to that potentially deceiving credit score. Even if your landlord doesn’t request credit references, consider adding in a few to really show who you are as a renter. Ensure they illustrate how responsible you are and how likely you are to pay rent on time. Coming from the right sources, credit references can help your application, and hopefully get you the rental.

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  • Can a Landlord Break a Lease Early? Reasons You May Need to and How to Do It

    Can a Landlord Break a Lease Early? Reasons You May Need to and How to Do It

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    When thinking about someone breaking a lease, you most likely picture a tenant who ends the lease early. However, that’s not always the case. In some circumstances, it’s the landlord who needs to end the tenant’s lease early. So, can a landlord break a lease early?

    Landlords can break a lease, but only within specific circumstances. In this Redfin article, we’ll outline the reasons you can break a lease agreement and how to tell your tenant in advance. Whether you’re a landlord renting your home in Phoenix or a property manager leasing an apartment in Denver, find out when you can break a lease early.

    Reasons landlords may need to break a lease agreement

    There are a variety of reasons that can lead to property owners serving an early termination notice to a tenant. This isn’t the same thing as an eviction, although there are some common reasons for breaking a lease and wanting to evict a tenant.

    Landlords often fit one of the following reasons for breaking a lease or rental agreement.

    • You want to sell the property or decide to live in it yourself.
    • The tenant has violated the rental agreement or is behind on paying rent.
    • The tenant committed illegal activities on or near the property.
    • The property is in poor condition and the necessary repairs are too expensive for you to pay for.

    Breaking a lease is a difficult decision for landlords, but it’s important to understand the consequences of doing so before taking any action. Most states have very specific laws dealing with breaking a lease by either a tenant or a landlord. Understanding local law first ensures the reason you’re providing for breaking your lease isn’t going to get you in trouble with the renter.

    Adding a termination clause in your lease agreement

    Even if you don’t anticipate a reason for terminating a lease agreement early, it’s best to include an early termination clause in your lease. That way, you’re protected and expectations are clear, should you need a tenant to vacate a property before their lease is up.

    A good early termination clause will follow the local law and set out the process for this situation. You need to spell out what must happen, no matter who’s initiating the lease termination. Include everything from how much notice you need to how you’ll notify the tenant about ending the lease early. A typical notification period is between 30 and 60 days in advance of the date a tenant needs to move out.

    Most landlords prefer a written notice whether they’re receiving notification or giving it to the tenant. If you’re breaking the lease, you’ll most likely want to put your written notice on the tenant’s door, as well as send a digital copy. This ensures they get the message.

    This clause should also specify any fees the tenant will have to pay if they’re in violation of the lease terms, and what will happen to their security deposit and any prepaid rent.

    organizing-mistakes-4

    How to terminate a lease early as a landlord

    To avoid an eviction lawsuit, you must carefully follow the process you’ve spelled out in your existing lease and comply with local laws. If you can wait for the lease term to finish, it’s always easier and less complicated. However, if you need to end a lease early on your rental property, here’s what to do:

    • Notify the tenant in writing of your intent to terminate a lease.
    • Give the tenant a reasonable amount of time, 30-60 days, to find a new place to live.
    • Recommend the tenant to another landlord or rental housing authority to help them search.
    • Discuss how this impacts the tenant’s security deposit and/or paying rent for the remainder of their stay.

    In theory, if it’s you who decides to break the lease, there are no fees the tenant must pay. That typically only happens if they contact you to move out early. There also may only be fees if the lease is a fixed term, rather than a month-to-month lease.

    Additionally, all deposits made at the time the lease was signed are treated the same way even if you break the lease. You should use the security deposit to assess damages, and return it (or as much as possible) within a proper amount of time once you’ve set the new move-out date. You’ll want to do the same for the last month’s rent deposit if that was part of the lease. You can use it to cover the tenant’s final month of rent, rather than asking them to pay again. . 

    What if my tenant has a month-to-month lease?

    Having a tenant on a month-to-month lease definitely makes it easier to ask them to move out of a property in a shorter time frame. A month-to-month lease only ensures the renter access to the property one month at a time. For this reason, you have the ability to ask them to move out at almost any point.

    Though you must provide 30 days’ notice, it’s not really the same thing as terminating a lease for a month-to-month renter. They’ll most likely expect the notice to come from you at some point.

    Once your tenant completes their first year on a lease, offering a month-to-month rental agreement may be a good strategy. It can make being a landlord easier and gives you more flexibility with your property.

    How does my tenant pay rent if the lease ends early?

    Even if you initiate the process to terminate a lease, your tenant must pay any unpaid rent they owe you. They should also keep paying rent until they move out. If your tenant paid last month’s rent upfront, you can apply that to the new last month your tenant will be on the premises.

    Multi color Leaves in Neighborhood

    Local laws when breaking a lease

    Many states and cities have similar laws when it comes to either a landlord or tenant terminating a lease early. However, these laws can vary depending on your location. Laws can differ on how much notice you have to give, what fees are charged, and the valid reasons for breaking a lease early.

    An important factor in the process though is keeping tenants’ rights in mind. Based on state laws, tenants may be able to:

    • Remain in the property until a new tenant is found.
    • Receive compensation for any damages caused by the landlord breaking the lease.
    • File a lawsuit against the landlord.

    To avoid these issues and any extra costs, you want to approach the whole process very carefully. This is especially true if you’re taking this step with prospective tenants or are selling your home. If you’re unsure of your local or state laws, you can consult with an attorney.

    When you can’t terminate a lease early

    The only time you can really terminate a lease without any reason is at the actual end of a lease term. At that point, it’s your call to not renew the lease agreement. However, there are situations where you may want to terminate early, but can’t. These include:

    • You don’t like your tenants, but they’re still following all the terms of the lease and the law.
    • You want to rent your property to a friend or relative, although you have a current tenant in place.

    Even if you have a good reason to terminate a lease early, you may want to start with a warning letter, giving a bad tenant the opportunity to fix their issues. For example, this could be appropriate in an instance where the tenant is late on rent or has possibly broken a term of the lease that they can fix. An example of a fixable issue is if they recently got a pet, but pets are not allowed in the lease terms. If the tenant rehomes the pet within your set time frame, you may not want to follow through with terminating the lease.

    On the flip side, if you do decide to terminate a lease, and the tenant refuses to leave, you’ll have to evict them. Eviction is a costly legal process that requires an attorney. With so many legal factors to consider, deciding to terminate a lease early isn’t a decision to take lightly. 

    Deciding to terminate a lease on a rental property

    There are many reasons why you may need to break a lease early, but you still have to navigate things carefully. Maintain solid contact with tenants and be clear on when and why they need to vacate. You’ll need to handle everything correctly which means it’s not always the right decision to terminate a lease early. Weigh the pros and cons, make sure you have a valid reason, provide proper notice and protect yourself throughout the process.

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    Alison Bentley

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  • How Long Does My Landlord Have to Fix Mold?

    How Long Does My Landlord Have to Fix Mold?

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    One of the most unwelcome issues in any home or rental property is the appearance of mold. It’s a tough problem to combat since there’s no sure way to keep it from showing up. There can be many reasons why mold occurs, and some are difficult to prevent. 

    There’s always a chance landlords or tenants will come across mold in a rental property. If you do find mold, it’ll need to be taken care of as quickly as possible, as it’s a health hazard to those living in the home. Here’s what to know about removing mold from a rental property and how long a landlord has to fix mold.

    Is a landlord responsible for mold in a rental?

    Ultimately, since the landlord owns the home, they’re responsible for taking care of the mold. It’s the landlord’s responsibility to make sure the property is safe and habitable for tenants. That means mold shouldn’t threaten the health of those living there.

    Since mold is uncontrollable and unpredictable, landlords should educate your tenants on mold and how to prevent it in the home. Let tenants know the places where mold is common, like under sinks, in the corners of bathrooms, and other humid areas. Encourage tenants to check for potential mold often. Be sure renters understand they should let landlords know as soon as possible if they find mold so the problem can be corrected before it gets worse.

    How long does a landlord have to fix mold?

    Once a tenant reports mold, landlords typically have 14 days to check it. Two weeks is common in most states, but always be sure to check your state’s regulations. If the problem is mold, the landlord has 30 days to take care of the problem.

    When getting rid of mold in your rental, the solution isn’t to just remove the current pieces of mold from the home. Landlords will need to also fix the underlying cause of the mold. For example, there may be a leak that caused water to seep into the walls and floors and mold grew due to the moisture. In that case, landlords need to fix the walls and floors where the mold is present and fix the leak to prevent it from happening again in the future.

    Mold in home because of Humidity

    Checking for mold in a rental property

    Before a tenant even moves in, landlords should thoroughly clean and check the property for any mold or signs of future mold issues. Common places where mold appears are underneath kitchen sinks and in bathrooms. Note other places that may have extra humidity and moisture in the rental, like the laundry room, closets, or basement corners, as these are often environments where mold grows unnoticed.

    Landlords can also use an at-home mold testing kit if there’s something they think might be mold or they can call in a professional to check the home out.

    How to remove mold from a rental property

    Depending on the type of mold and how much of it there is, landlords have a few ways to get rid of mold. Cleaning with a bleach solution can get rid of basic surface-level mold, but make sure to clean it thoroughly.

    However, if there’s a large quantity of mold, and it’s found inside walls or underneath the carpet, landlords likely need to call in a professional. Mold removal companies will ensure that they remove and properly dispose of all of the mold. They’ll know where and how to check for mold in all areas of the home.

    If there’s any doubt about whether or not a rental property has mold, don’t hesitate to get a professional opinion. Spending a little bit of money for an expert to check for mold at the beginning can end up saving lots of money and hassle in the end, as it can avoid future problems that could be costly.

    living room with lots of windows and curtains

    Key tips for preventing mold

    It’s much harder to fix a mold problem than it is to prevent it from happening. Landlords and tenants can’t always control whether or not mold starts to grow in a rental since mold is unpredictable. However, there are things both parties can do to make it so the rental property doesn’t foster mold growth.

    Airflow and ventilation

    Make sure there’s good airflow and ventilation throughout the home, especially in places where mold is likely to grow. The bathrooms should have windows you can open to let out any additional moisture from bathing and showering, and a working exhaust fan in each bathroom.

    If the rental property is in a humid location, like a home in Orlando or an apartment in Houston, landlords may want to consider installing a dehumidifier to extract the excess moisture from the air.

    Check for leaks often

    Leaky sinks can create an environment in which mold likes to grow. Check underneath sinks often to ensure there aren’t any leaks — even a small one can cause big mold problems. Tenants should report any leaks immediately, no matter how big or small the leak is, so maintenance can take care of it.

    Educate yourself about mold

    Learning about mold and how and where it can grow will help keep the rental mold-free. Tenants should reach out to their landlord as soon as they find mold or even if they think they’ve found signs of mold so it can be removed.

    Be thorough and exercise caution

    The best thing to do as tenants and landlords when it comes to mold is thoroughly preparing your property and exercise caution. You can’t control mold in a rental property, but you can take preventative measures and check often to keep any potential problems in check. If you’re careful, you’ll create a safe, healthy environment for your tenants, and you shouldn’t have any big mold issues on your rental property.

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    Alison Bentley

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  • What to Include in a Proof of Residency Letter (Template)

    What to Include in a Proof of Residency Letter (Template)

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    As a landlord there are a variety of things you can expect a tenant to ask you – and one of those things is for a proof of residency letter. Tenants may need proof of residency to change their address on their driver’s license, set up utility bills, or even update their voter registration. So, what exactly do you need to include in a proof of residency letter?

    At Redfin, we’re here to help. So whether you’re a landlord renting your home in Dallas or a property manager renting apartments in Phoenix, here’s what you need to know about proof of residency letters.

    Marcus Lindstrom via Getty Images

    What is a proof of residency letter?

    A proof of residency letter is a sworn statement that confirms that the person named in the letter actually lives at the current address listed. It ensures the contact details they’ve provided match up with your official documents. As a landlord, you’re a reliable source to provide proof that your tenant actually lives at the address. 

    As a result, the letter you submit is considered a legally binding document. The proof of residency letter confirms the recipient’s address, so your tenant has evidence they live where they say they live.

    Why might a tenant need a proof of residency letter?

    While a variety of documents can establish residency, some situations require the individual to provide proof from more than one source. This is why they may need a residency letter along with additional documents.

    Possible scenarios where a proof of residency letter is necessary include:

    • Applying for in-state tuition at college
    • Going to the Department of Motor Vehicles to update (or get) a driver’s license
    • Getting a local library card
    • Verifying a child lives at a particular address to go to school in a specific school district
    • Establishing a tenant lived at a certain address for a specific period of time
    • Applying for a job with any government agencies
    • Gaining eligibility for specific insurance programs
    Modern townhouses
    AnthonyRosenberg via Getty Images

    Proof of residency letter template

    To make it quick and easy to generate a residency letter for your tenants, this proof of residency template can help.

    Today’s date

    The name and address of the party requesting the residency letter

    Dear ____________,

    This letter is to confirm that [Tenant’s legal name] resides within the property located at [Complete address information]. [Tenant’s name] has been a tenant at this property since [Start date of lease], and their current lease expires on [Date].

    If you have any questions, please do not hesitate to contact me.

    [Your actual signature]

    Your Name

    Job title

    Your contact information

    Past proof of residency letter template

    For tenants who lived in your rental property previously, but need to establish proof of residency during that time frame, you’d use a slightly different template.

    Today’s date

    The name and address of the party requesting the residency letter

    Dear ____________,

    This letter is to confirm that [Tenant’s full legal name] lived within the property located at [Complete address information] from [Start date] to [End date].

    If you have any questions, please do not hesitate to contact me.

    Sincerely,

    [Your actual signature]

    Your Name

    Job Title

    Your contact information

    belongings in a house

    Do you need to get the letter notarized?

    While it’s not required to have a notary public stamp a letter to prove residency, it often helps make the document more official. Many landlords will opt to get notary proof for their residency letters, especially if they know the tenant is using the document as a cover letter for other documents that establish proof of address.

    Other options for proof of residency

    Oftentimes, your tenant will need more than one piece of proof to establish residency. They’ll likely use your letter in addition to other documents that feature their mailing address.

    If your tenant ever asks you what other documents establish residency, options include:

    • A valid driver’s license
    • Utility bill
    • A piece of mail sent to your current address
    • Lease agreement
    • Voter registration card
    • Bank statements
    • Credit card bill

    Proof of residency letter vs. landlord reference letter

    A proof of residency letter is different from a landlord reference letter. A landlord reference letter is a letter written by a property owner or manager that attests to the good character of the tenant. Reference letters are often used for former tenants looking to rent in a new location.

    A landlord reference letter may help convince a future landlord that this tenant would be a good choice. It may lead to follow-up questions from the potential landlord related to how well the tenant paid monthly rent, among other key points, that make a tenant a good renter.

    A proof of residency letter only confirms that the person named in the letter actually lives at the address listed, or was a resident within a specified period.

    While both documents serve different purposes, they can complement each other in various situations. Proof of residency letters primarily focus on verifying an individual’s address history. They may be requested for purposes like obtaining a driver’s license, enrolling in school, or applying for government benefits. It essentially confirms a person’s physical presence at a specific location.

    What should you include in a proof of residency letter template?

    Since a proof of residency letter is an official testimony, it should be professional. Use a business letter format, which means you should make your residency letter clean and short. You want to get to the point as quickly as possible in a residency letter.

    The necessary information your proof of residency letter should include is:

    • Your name, address, and contact information
    • Date
    • Name and full address of the person/organization making the residency claim
    • Complete address of the rental property
    • Legal name of the person whose residency is in question
    • The timeframe the individual lived in the rental property (the lease term), or whether they’re a current resident
    • Your signature

    You can consider adding a witness signature by the current tenant or having the document notarized. Both add an extra layer of professionalism to the letter.

    Offering a residence letter makes you a better landlord

    Providing a proof of residency letter for your tenants is an easy way to be a good landlord. This supplemental evidence can make a big difference for your tenants, and as long as you’ve got a template ready to go, generating a proof of residency letter takes barely any time at all. Keeping tenant-landlord relationships strong isn’t always easy, and this is one way to keep things going smoothly between the two of you.

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    Alison Bentley

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  • How to Find Landlords That Accept Section 8 Vouchers

    How to Find Landlords That Accept Section 8 Vouchers

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    Many renters know that finding affordable housing is tricky these days. As a result, many low-income families turn to housing vouchers to help cover the cost of the rent. More than 5 million households use federal rental assistance through the U.S. Department of Housing and Urban Development’s Section 8 program, and about 70 percent of those individuals are older people, children and people with disabilities.

    Still, many renters may not know where to look to find private landlords that accept housing vouchers. Here are some tips, along with an overview of what housing vouchers are and who’s eligible to receive them.

    What are U.S. Department of Housing and Urban Development (HUD) housing vouchers?

    HUD’s Housing Choice Voucher Program, also known as Section 8, helps low-income people afford homes to rent, whether it’s an apartment, single-family house or townhouse.

    A public housing agency (PHA) administers the housing choice voucher. But, it’s up to low-income families to find rentals and private landlords that accept vouchers.

    A private landlord receives a payment from the PHA on behalf of the renter participating in the Section 8 program. Tenants pay the difference between the rent payment and what the voucher covers.

    The program benefits private landlords and tenants. Landlords receive a voucher for fair market rates, while a tenant can find rental housing that better fits within their budget.

    How do you qualify for Section 8 vouchers?

    Public housing agencies determine eligibility for Section 8 vouchers based on a household’s income and the number of family members living in the home. The rental assistance applies only to U.S. citizens and specific non-citizen groups. There are also financial requirements to qualify.

    Financial requirements for Section 8

    To be eligible, a family can’t earn more than 50 percent of the area’s median income. The local housing authority is also required by the federal housing program to offer 75 percent of its housing choice vouchers to people with incomes not exceeding 30 percent of the local median income.

    Waiting lists for Section 8

    There are often waiting lists to access housing vouchers, usually a few months but sometimes longer. The length of a waiting list depends on location.

    The housing authorities will contact you once you reach the top of the list. Then it’s time to find apartments and other rental property that take Section 8.

    Save money for home cost
    ridvan_celik via Getty Images

    How do Section 8 vouchers work?

    Low-income individuals and families have a choice in housing. Once the PHA selects someone for the federal housing program, they select the type of rental that best meets their needs but that also accepts the housing choice voucher.

    There are two types of housing choice vouchers: project-based vouchers and tenant-based vouchers. Project-based vouchers must use specific housing developments. You can use tenant-based vouchers for any home, as long as the owner will accept the voucher and the property meets the program requirements.

    When renters find houses or other suitable property where the private landlord accepts the voucher and works out the terms of a lease agreement, the housing and urban development agency inspects the home to make sure the landlord is asking for a reasonable payment.

    The voucher covers part of the rent amount, based on how much renters can afford.

    How to find affordable housing that accepts vouchers?

    Once you’ve been approved for the program, the next step is to find houses and apartments that accept Section 8 vouchers. And, this is tough, depending on where you live.

    Tips to find apartments and other rentals that take Section 8

    To find apartments and other rentals owned by private landlords that accept Section 8 vouchers, follow these steps:

    • Start with your local PHA, which can point you in the direction of property owners that accept vouchers. The Department of Housing and Urban Development website lists PHA contact information by state.
    • Check with your local HUD office to apply for the program and to learn about rentals that accept vouchers.
    • Ask friends and family members for recommendations for private landlords that accept vouchers.
    • Search Rentals.com to find properties in your area. You can filter your search to find “income-restricted” rentals.

    Do landlords have to accept housing vouchers?

    Section 8 allows private landlords to accept housing vouchers and rent to low-income people at a fair market rate. The PHA signs a lease with private landlords and pays a piece of the rent, while tenants must pay the difference.

    However, private landlords are not required to accept Section 8 vouchers and participate in the program, under federal law. Some states require private landlords to accept vouchers.

    Connecticut, Maryland and Massachusetts are states where landlords can’t refuse to rent to tenants who are eligible for Section 8, according to the American Apartments Owners Association.

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    Can Section 8 vouchers be used anywhere?

    Not all private landlords accept Section 8. Many apartments and houses around the country will accept Section 8 — as long as they meet the federal government’s rules and regulations.

    Private landlords screen renters

    Whether it’s apartments or a single-family home, a landlord still screens renters when they accept Section 8. This usually focuses on a background check and credit check to learn about the individual’s criminal history and rental history.

    The Section 8 program verifies a renter’s income before approving them for the program.

    HUD must approve apartments and other rentals

    To accept Section 8, private landlords must have their apartments and other properties approved by HUD. A Section 8 renter can’t live there otherwise.

    A landlord will submit a tenancy request with HUD that includes the address of the apartments or other rental properties, projected lease start date, the tenant’s rent and any included utilities.

    Rental properties must pass an inspection

    Apartments and other rentals that accept Section 8 must pass an inspection by HUD and the local PHA.

    HUD stipulates minimum housing standards, which you must to accept Section 8. The standards focus on safety, security and the condition of the property. Private landlords must guarantee that apartments and other rentals will protect the health, safety and security of their residents.

    Section 8 authorities inspect the home once a year. Private landlords must pass inspections to continue to accept Section 8.

    Follow the lease

    Just like with any other renter, private landlords must follow the lease agreement when they accept Section 8. That means private landlords must handle repairs and maintenance, as stated in the lease.

    Section 8 renters also must comply with the lease, including paying their portion of the rent payment on time and following other rules and regulations.

    Inform HUD of rent increases

    Private landlords can raise the rent for Section 8 apartments and houses. They just need to inform their local HUD office in advance.

    However, private landlords must charge Section 8 renters the same as other renters for comparable apartments. And, they can only raise the rent once a year.

    Abide by fair housing rules

    Federal fair housing laws protect renters from discrimination when renting a home, including Section 8 rentals.

    Fair housing prohibits discrimination based on race, color, national origin, religion, sex, familial status and disability.

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    What is the most Section 8 will pay?

    The Section 8 program determines how much to pay private landlords based on several factors, including how much apartments and houses typically rent for in the area, and the PHA determines the maximum amount they’ll pay.

    The exact amount the government pays for Section 8 varies based on where the property is, but the amount is usually 90 to 110 percent of the fair market rate.

    Renters who receive Section 8 must contribute to their rent, as well. How much also varies, but it’s often 30 percent of their adjusted monthly income or 10 percent of their monthly gross income, whichever is greater.

    Renters pay their portion directly to the private landlords that accept Section 8.

    While Section 8 pays part of the rent to make finding a place to live much more affordable, it doesn’t cover everything. Renters still have to pay their security deposits.

    How to apply for Section 8 vouchers?

    To apply for Section 8, contact your local PHA office or HUD office.

    The Section 8 application process involves providing personal details, like name, Social Security number and income. The PHA will verify your monthly income with your employer and determine whether you’re eligible and the amount of Section 8 funds you’ll receive in housing assistance.

    After approval, you may get wait listed. Then, it will be time to landlords who will accept housing vouchers.

    What to know about Section 8

    Section 8 is a huge help to many renters struggling to find a place that they can afford. Under the program, the government pays a portion of your rent. You just need to find homes that accept the voucher.

    The best ways to find Section 8 rentals are to check with the PHA in your area and search sites like Rentals.com, where you can filter “income-restricted” properties. This will help you find houses and apartments that meet your family’s needs and that are well within your budget.

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    Alison Bentley

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  • How to Get an Apartment with No Credit: 9 Tips for Renting an Apartment Without a Credit Check

    How to Get an Apartment with No Credit: 9 Tips for Renting an Apartment Without a Credit Check

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    When you lack a credit history or have a lower credit score, you may find yourself wondering whether you can find an apartment rental without submitting to a credit check. While this is possible, there are some important considerations to keep in mind to ensure you’re finding a legitimate and safe living situation.

    Whether you’re searching for apartments in Denver, rentals in Boston, or properties anywhere else in the country, this Redfin article provides essential information to help you determine if a no-credit-check apartment is the right choice for you.

    What are no-credit-check apartments?

    A no-credit-check apartment is an apartment that can be rented by anyone, regardless of their credit history. The landlord or property manager does not check your credit report during the application process, instead relying on other information to prove that you can make your rental payments on time.

    Apartment rentals that do not require a credit check are rare in most places. Smaller towns with cooler rental markets are less likely to have credit checks, while hotter rental markets with a ton of demand are far more likely to involve credit and income requirements in the rental application process.

    How to get an apartment with no credit

    There are few strategies you can use to get an apartment if you don’t have a credit history or have poor credit. Make sure you’re prepared to approach your prospective landlord beforehand to make your case.

    1. Get a cosigner

    The easiest way to rent with bad credit is by leasing with the help of a cosigner. A cosigner is a person with great credit and income who can vouch for you. Keep in mind that your apartment cosigner will be responsible for any unpaid rent you leave behind. Most renters work with a parent, guardian, or trusted family member. Your cosigner will need to meet some basic qualifications like a minimum credit score and a stable income.

    2. Find a roommate with good credit

    In addition to splitting the cost of rent, living with a roommate can make it easier to secure an apartment without credit. If your roommate has a high credit score, they can help you secure an apartment that would otherwise be out of range. Keep in mind that any unpaid rent would legally be your roommate’s responsibility. This option provides all the benefits of a cosigner while saving you some money every month.

    3. Show proof of income

    Your recent pay stubs plus a year or two of tax returns will show your landlord that you make enough money to cover your rent. In many places, especially competitive rental markets, you may also need to show your bank statements. This provides proof that you have enough savings to cover you if you hit a rough patch.

    4. Use a reference

    Providing a reference, especially an employer who can affirm that you are a valued employee, is a great way to bolster your application. References can help push your application to the top of the pile. Your reference should provide a short written note with a phone number, so the landlord can follow up if they need to.

    5. Provide a higher security deposit

    Another way to sweeten your application is by offering a larger security deposit at the start of your lease. This is money that provides a cushion to your landlord in the event that you don’t pay your rent. Typical renters provide the equivalent of one month’s rent, so offering two or three months can give you an edge. This strategy won’t work everywhere, as some cities have strict rules regarding security deposits.

    6. Offer to pay rent upfront 

    If possible, offer to pay a few months’ rent upfront. This can mitigate the landlord’s risk and show your commitment. This approach can be particularly effective if you have a steady income, but lack a credit history or have a low credit score. It reassures the landlord that they will receive payment despite your credit situation, and it can make you a more attractive candidate compared to others who may not have the ability to make such an offer.

    7. Consider renting from private properties

    Working directly with the landlord is generally easier than working with a property manager. The property manager has one goal: rent out units to well-qualified tenants as soon as possible. Property managers make money on the rent paid, and that’s it.

    Landlords, on the other hand, make money off rent but also gain equity and tax breaks through their property. Because their investment is a little more dynamic, they are naturally more open to negotiations.

    8. Offer to move in quickly

    Landlords and property managers always value a quick move-in. You don’t even have to physically move into the apartment, so long as you’re paying the rent and utility costs. In some markets, renters offer to pay a week or several weeks in advance of their actual move-in date to secure their apartment.

    9. Explain your situation

    Be honest about your credit situation and explain any extenuating circumstances. Transparency can sometimes help sway a landlord’s decision. For instance, if your credit issues stem from a specific event such as a medical emergency, job loss, or other temporary setback, sharing this information can provide context to your credit history. Highlighting how you’ve managed your finances since then and any steps you’ve taken to improve your situation can also be beneficial. This demonstrates your responsibility and commitment to improving your financial standing.

    Couple discussing options for renting with low credit

    How to build credit for an apartment

    While it is possible to rent an apartment without a credit history, taking steps to build and improve your credit can significantly enhance your rental options and overall financial stability. Establishing a strong credit profile not only makes it easier to secure future housing but also provides access to better rental terms and reduces the likelihood of needing co-signers or large upfront payments. In the following section, we’ll explore practical tips and strategies to help you boost your credit score and achieve greater financial stability.

    1. Review your credit report

    Begin by taking a full, honest look at your financial situation. You can pull a free copy of your credit report from all three credit bureaus: Equifax, Experian, and TransUnion. Make a list of what’s causing your low credit score and needs to be addressed. Common culprits include:

    • High credit card balances
    • Late payments
    • Balance in collections

    2. Set a credit score goal

    Setting a score goal is a great way to motivate yourself and track your progress. Most landlords and rental agencies are happiest with scores at or above 720. But, many will accept scores as low as 680. Just remember that you may be competing with other prospective renters, so the higher your score the better.

    3. Pay off debts

    Debt is the number one killer of good credit, and there are three debts that have a big impact on your score:

    • Collections debts: unpaid bills that are now with collections agencies
    • Credit card debts: unpaid balances on a credit card
    • Other loan debt known as “good” debt, such as a student loan

    Debts in collections hurt you the most and have the longest-running impact, even after the debt has been paid. Pay these down first. If you have any bills with late payments, you’ll also want to address those as soon as possible. After this, you can move on to paying off your other debts.

    4. Get a secured credit card

    You need credit to build credit. Getting a secured credit card is a great way to build credit. You may start with a low balance, typically less than $500, that you pay in full beforehand (prepay). After some time, your lender or creditor may offer you a traditional credit card with a revolving line of credit.

    5. Take out a loan

    Another way to build credit is by getting an installment loan and paying it off on time every month. You may need to work with a community bank or credit union. And you may need to provide a cash deposit to back your installment loan.

    6. Consider living with a roommate

    A roommate with better credit can make things easier for you while you continue to build your credit. If you have a high income, you may be able to join forces with someone with a lower income but higher score. You should also find it easier to save money as living expenses tend to be lower with roommates. Just make sure you know how to find a good roommate that fits with your lifestyle.

    7. Make payments on time

    A positive payment history is an important part of your credit score. Making payments on time every month is critical in building and maintaining good credit. Late payments become less relevant as they age, and as you continue to make your payments on time. Eventually, late payments will “fall off” your credit history.

    8. Monitor your credit over time

    Checking your score at least once a month is a great way to ensure you’re staying on top of your financial obligations and meeting your goals. It’s also important for ensuring that incorrect information stays off your credit report and allows you to catch suspicious activity early. There are many free services that allow you to track your score.

    Future tenant looking for no credit check apartments

    Renting an apartment with no credit – FAQs

    1. Do you need credit to rent an apartment?

    No, you do not necessarily need credit to rent an apartment, but having a good credit history can make the process easier. Many landlords and property management companies use credit checks as part of their screening process to assess a tenant’s financial responsibility. However, there are several ways to secure an apartment without a credit history or with poor credit. 

    2. Is it hard to rent an apartment without credit?

    Yes, renting an apartment without credit can be more challenging. Landlords and property management companies often rely on credit checks to evaluate a potential tenant’s financial responsibility and ability to pay rent on time. Without a credit history, you lack the financial track record that gives landlords confidence in your reliability as a tenant. This can make them hesitant to rent to you.

    3. Is no credit worse than bad credit?

    In most cases, landlords will be more hesitant to rent to tenants with bad credit. While having no credit simply means a lack of credit history, bad credit is the result of missing or late payments, which are much riskier for landlords.

    4. What credit score do you need to rent an apartment?

    The minimum credit score you need will vary depending on the apartment, location, and landlord. However, many landlords will find it difficult to accept scores below 680 when prospective tenants with higher scores are available. Many landlords won’t even consider an applicant with a score below 620.

    5. Why do landlords check your credit for an apartment?

    Credit checks are an important part of the screening process for landlords. Your credit score isn’t a perfect indicator of creditworthiness, but it is useful for landlords trying to gauge whether a tenant will pay their rent on time. In addition to a credit check, most landlords will perform a background check and ask for proof of income.

    6. What should I look out for with no-credit-check apartments?

    Landlord’s who promise a no-screening process may not be legitimate. Beware of deals that seem too good to be true or lack pictures or adequate descriptions. These are likely rental scams. You should always be wary of any listings with glaring red flags.

    Though a no-credit-check apartment could be legitimate, there may be other factors that make living conditions less than ideal.

    7. What if I can’t get an apartment?

    A possible alternative to a traditional apartment is to rent a privately owned property. Some homeowners might be willing to rent rooms out of their homes. As we mentioned earlier, private property owners are usually more flexible than large property management companies, so they may be more willing to look past your lack of credit history or bad credit.

    While it can be hard to find a no-credit-check apartment, there are some out there. In the meantime, using some of these tips can help you land a rental even if you don’t have a credit history to lean on.

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    Chibuzo Ezeokeke

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