What are the factors that help get a rental application approved by a landlord or management company?

Management companies / landlords possess various application requirements, but generally share similar policies with respect to good credit, adequate income, employment and guarantors (if applicable).  The most important aspects of any application are usually proof of the ability for a prospective tenant to pay full rent on time throughout the duration of the lease and the demonstration of good conduct (i.e. will not cause any problems in the building or with other tenants).

Credit History & Criminal Record
A credit report with your credit score is required for most rental applications, as it is a good indicator of your financial past and demonstrates credibility or lack thereof.  Therefore, credit is a primary factor during the approval process and a bad credit score, no credit or multiple blemishes on your record could negatively impact your ability to get approved for a rental apartment.

Generally, credit scores of 700 or more are considered strong, while scores of 650 or less could cause problems with some mgmt cos / landlords who may require the use of a guarantor in such situations.

Some mgmt cos / landlords may even go a step further and require a criminal background check as an added option to the credit report.  If this is the case, any issues found could adversely affect your application.

Income & Tax Returns
Income requirements are another primary factor used to determine the financial capability of a tenant to pay rent every month for the duration of the lease.  Annual income must usually be at least 40x monthly rent (but can range from 35-50x).

For more than one tenant living together, some mgmt cos / landlords will allow combined income, while others may not.  In addition, if you are starting a new job, the promise of future income may not be considered enough, as many mgmt cos / landlords ask for copies of 2-3 prior paystubs as part of the application.

Tax returns (e.g. 1040, W-2, etc.) are another common requirement on most applications, as they are official documentation of prior income.  For self-employed applicants, mgmt cos / landlords generally require several years of prior tax returns and a CPA-certified letter stating income and other information about the business activities of the individual and his/her company, if applicable.

Employment
A Letter of Employment (or LOE) is generally required to describe various details about the current employment status of an applicant, including position, salary, additional compensation and length of employment (on company letterhead and signed by a supervisor or human resources representative).  Stable employment at a current position is obviously a plus, but new jobs are a common occurrence and can be viewed as adequate with the accompaniment of an offer letter and prior employment information (including compensation) from your last company.

As mentioned above, for self-employed individuals, a CPA must usually provide a certified letter and documentation describing the business activities of the applicant.

Assets
A common application requirement is to submit copies of prior bank and/or investment account statements, demonstrating a sufficient level of personal liquid assets that can be used to pay rent if income is unavailable.  Therefore, showing more liquid assets will make your application look more attractive.

References
Some mgmt cos / landlords require a variety of references to verify the credibility of prospective tenants.  These references could be from a recent landlord, business colleagues, personal contacts, a local bank branch (with respect to checking and/or savings accounts), etc.

Guarantor
If some or even one of the above factors does not meet a mgmt co / landlord’s standards, you may be required to submit an application with a guarantor who can cover all of your obligations (e.g. payment of rent, etc.) in the case that you are unable to.  This is common with non-U.S. citizens, who do not have U.S.-based credit history, recent college graduates and other individuals who have issues submitting an adequate application.

Additional Security Deposit
If an application does not specifically meet certain requirements, a mgmt co / landlord may still approve the applicant with the condition that a certain number of additional months of security deposit are provided.  This helps to reduce its risk and protect it from non-payment of rent or damages to the apartment caused by the tenant.