How Credit Affects Your Rental Search

Credit can tricky to understand under normal circumstances and is a primary concern for those looking for rental housing of any kind.

A person's credit report and score are part of the standard application process during the pre-lease period.  It's also a common cause for a rental application to be denied.

Why all the fuss?  What are property managers and/or owners looking for when they get that report?

That depends on the landlord, but generally they are looking for past collection accounts, vehicle repossessions, judgments and evidence of poor history (evictions and associated costs).

Some properties have a minimum credit score they will accept.  For example, ABC company will only accept applicants with scores over 620, while XYZ Management will accept 600 or above.

There are also properties that will work with bad and poor credit, charging a higher deposit to the applicant.

Rental Matchmaker recommends checking your own credit before you start your search to verify it's correct, without errors.

Should your credit be questionable, work with a locator who can identify properties that will work with you.  It's much cheaper than paying out application fees on denied applications.

Here in the Greater Phoenix Area, it's free to the tenant.  Pricing and who pays the fee depends on the market in your specific area, so if you live outside of the area or state, it's best to ask locally what the policy is.

If you have questions or would like assistance in your finding your next home, please get in touch! We are happy to help you get started!


Source:

http://YourRentalMatchmaker.com/

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How Much Rent Can You Afford?

Choosing an apartment or house is a big decision.

Most people need to stay within a budget they can afford. The question for thousands of renters each month is how much rent can I afford to pay?

Nearly all landlords and property managers have requirements, but those requirements vary. Adding to the mix a co-signer adds increased confusion if one becomes necessary.

Typically, it is suggested that no more than 30% of gross household income should be spent on rent. Across the Greater Phoenix Area, income requirements range between 2 to 3 times the amount of the rent. The most common are 2, 2 1/2 and 3 times the rent for income, although rarely someone will work with 1 1/2 times the rent.

Say you want to rent an apartment for $850 per month. The landlord or property manager has an income requirement of 2 1/2 times the rent. In this case, you would multiply $850 by 2.5. Your gross income must be $2,125.00 per month in order to qualify for the unit.

 It looks like this:

$850 x 2.5 = $2,125.00 (required income)

For 3 times the rent:

$850 x 3 = $2,550 (required income)

You can calculate how much you want to spend in rent the same way. Find a number that is comfortable for you, that will leave money left over for cell phone, internet and other expenses so you have some wiggle room.

 A little room in your budget can go a long way!

 Utility expenses also need to be figured into your affordability. If all of the utilities are included, you can go higher on rent amount accordingly. If not, sticking to the 3 times the rent is a great standby rule.

If you have questions or would like assistance in your finding your next home, please get in touch! We are happy to help you get started!

Source:

http://YourRentalMatchmaker.com/

Rental Matchmaker on Facebook

Thanks for stopping by!
Rental Matchmaker
info@yourrentalmatchmaker.com
602-492-5285