If I have bad or no credit, minimal work history, low income or other adverse issues, how can I qualify for an apartment rental?
Depending on your exact situation, it may not be that easy to get approved for an apartment; however, there are certainly several options that you can try to secure a rental. These include using a guarantor, offering to pay rent upfront, providing additional months of security deposit or finding a sublet. In order to improve your chances of getting approved, your goal should be to find ways to limit your risk (of not paying rent) to the respective management company / landlord.
Guarantor
A guarantor provides a guarantee on behalf of the tenant that all rent due according to a lease agreement is paid, if such tenant is unable or does not do so. Guarantors must have an annual income of at least 80x the monthly rent, possess solid credit and demonstrate additional financial stability. Typical guarantors include parents, relatives, friends and sometimes corporations.
Insurent
Insurent is a company that acts as a guarantor for an annual fee. If one cannot secure a guarantor, this service is an option for individuals willing and able to pay a fee of up to the equivalent of one month’s rent (potentially more for international customers with no U.S. based credit history). The application process for Insurent requires a review of financials and credit history, which determines the required fee for the year.
Upfront Rent
Offering to pay several months of rent upfront at the lease signing could improve your chances of obtaining approval, as it can demonstrate your financial ability to pay rent during future months. If your credit score / history is not optimal or you are a non-U.S. citizen, but you can afford to pay a full year’s rent upfront, some mgmt cos / landlords may look at you more favorably and be willing to approve you as their risk of loss is considerably limited.
Security Deposit
Providing multiple months of security deposit could be another option to help a mgmt co / landlord get more comfortable with an approval. In circumstances with questionable tenants, mgmt cos / landlords may end up requiring additional security anyway.
Sublets
If all else fails, finding a sublet may be your best and potentially only option. Many sublet situations do not require credit checks or a standard application process, so as long as you show that you can pay the monthly rent and provide a security deposit, you can find yourself a new home. Sublets can range from a few weeks to multiple months and could lead to extensions for longer periods of time.
