There are nearly 38 million apartment residents in the United States. Each one has their own story to tell and each one chose apartment living for a different reason. I remember my first apartment. It was 1993 and I had milk crates for end tables and a high-voltage line spool for a coffee table. I can still hear the A/C compressor sputter as the unit kicked on. The apartment was small and very old, but it was three blocks from the beach and I loved being able to walk or bike to the sandy shoreline. My apartment was the social center for all of my friends. We would laugh until the early morning hours, and more than once we had a noise complaint. (Hasn’t everyone at one point or another?) It was a great time in my life, but that’s my “first apartment” story. What’s yours and why did you chose apartment living? Read the rest of this entry »
‘rental history’ Tag
As your long and possibly arduous apartment search comes to a close, it comes time to submit your applications and begin the wait for approval. One critical element of the rental application is your rental history, which could mean good or bad things for you. Your rental history is significant to your potential new landlords, as it is essentially a record of your prior rental experiences. Landlords will want to know what kind of tenant you were in the past, so they can minimize the risk of renting to someone with, for example, a history of consistently being late on rent. While late rent payments do not directly affect your credit score, landlords requesting credit checks may also request data on your rental history from those credit agencies. Although late rent payments don’t affect your credit score the way a late mortgage payment would, late rent payments in your rental history will raise a red flag to prospective landlords.
What hurts your rental history?
When requesting a rental history for a potential renter, landlords will be provided with all kinds of information about you. Among the negative things they could learn about you are events such as bounced checks or late rent payments. Even worse, unpaid housing debts, eviction proceedings, and breaches of lease terms can also be reported to credit agencies for distribution to landlords. Financial irresponsibility aside, rental histories may also report on complaints about you or significant damages to your past apartments. All of these are huge red flags to potential landlords and probably weigh heavily in their decision to rent to you. Whether you’ve squared away your debts and kept your apartment in good shape are also factors in getting your deposit back.
What helps your rental history?
On the flip side, maintaining a good rental history and credit score is the best way to show potential landlords that you’re a good fit and a low-risk renter. Being a model tenant isn’t hard – so long as you pay rent on time, be a considerate neighbor, and take good care of your apartment. With no judgments or evictions against you, landlords can feel good about renting to you – possibly even at a lower deposit amount.
I remember when I rented my first apartment, my landlord asked me for my information for a credit check. Having just finished my freshman year of college, I had no credit history to speak of let alone any clue what they might want to know from my credit history. I had a cosigner for my first apartment but through the years I’ve had to make sure my credit score is good so that I can continue to be able to rent an apartment. A landlord wants to ensure that the tenants they select are responsible and will take care of their property and pay their rent on time. Performing a credit check on a prospective tenant can give a landlord a reasonable indication of what to expect from that tenant.
Here is what most landlords actually look for when they check your credit report:
It’s a no-brainer that the more debt you have, the less likely a landlord is willing to rent to you. Landlords run credit checks to see how much debt prospective tenants have. Once they know your debt load, they often compare that to your income to see if you can afford to rent the apartment while still being able to pay off your debt. If your income and debt load do not match up, the landlord will not be likely to rent to you.
Consistency and Predictability
Landlords look at a potential tenant’s credit report for evidence that the candidate has established consistency, stability and predictability in their finances. Consistency is demonstrated by what a prospective tenant does over and over financially. If a credit check reveals that a borrower has on-time payments with several accounts, over several years, then he or she is consistent. Stability can be determined by a number of factors. The number of years you’ve held a job, the number of accounts you have open, and your payment history all contribute to stability. A potential tenant who can handle his or her financial obligations and works for the same employer long-term is a financially stable individual. Landlords check credit reports to predict the behavior of the person who will be renting the property. The more consistent and predictable you are with your job and your finances, the more likely you are to be approved to rent an apartment!
A landlord can check a prospective tenant’s rental history through a credit report. A landlord can use rental history data to see where you have lived and make inquires concerning your previous rental agreements to see if you paid your rent on time or owe any money to your previous landlord. They will check your rental history for predictions on your future behavior as a renter. Rental payment history only goes on your credit report if your landlord reports your payment history to a credit bureau. One of the main ways I build credit is through paying my rent. I don’t have any other big expenses to build credit with other than my rent so I pay my rent online through WilliamPaid and they report my payments to a credit bureau so that every time I pay my rent on time each month, it goes towards building my credit. This helps not only my personal credit but also makes me more likely to be approved for an apartment in the future!
Submitted by WilliamPaid.com. WilliamPaid lets renters & roomies pay rent online, automatically, with more flexibility and it’s FREE. Users can also build credit with each rent payment.