When you apply for a rental property, landlords have the right to conduct a tenant screening process. This is their way to identify the prime tenant for their rental unit. Landlords dig deep into your personal background, rental history, and financial situation to gauge your capability and suitability as a tenant.
Considering this, there is a possibility that you don’t pass the screening process. So, what do you do if your rental application is denied? To help you answer this question, here’s a comprehensive guide on the steps you need to take when you don’t pass your landlord’s screening process.
Key Takeaways
When your application is denied, ask the landlord to provide the reason for the disqualification.
Poor credit history, inadequate income, as well as bad rental and character references, are some of the most common reasons for denied tenant applications.
Building better credit, securing steady income, and maintaining good relationships are key strategies to strengthen your rental profile
What to Do If Your Rental Application Is Denied
As a property manager in Austin, we are well aware of the tenant screening process and how it’s used to determine the applicant’s suitability. Although we realize that there’s a continuously growing demand for housing in the country and want to give tenants the home that they want, that is easier said than done.
Tenant screening is a critical procedure designed to protect landlords and their rental properties by allowing them to identify tenants capable of living in their rentals sustainably. Generally, it follows a standardized process and has established best practices used to maintain fairness, consistency, and transparency.
So, what does it mean when your application is denied? Basically, this means that your landlord (or the property management company they work with) saw something in your background or details that has raised some red flags.
Now, this leads us to the topic of what to do if your rental application is denied. Here are some tips:
Review the reasons why your application was denied. Landlords typically state the reasons for rejection in their denial letter, so identify the potential reasons for the unfavorable outcome.
Make sure that your rejection aligns with Fair Housing Law, which prohibits housing discrimination. In Austin, protected categories include race, color, religion, sex and gender, disability, familial status, national origin, marital status, student status, and age.
Politely ask your landlord or property manager to clarify the reason for your unsuccessful application. If the disqualification is for something that you can fix within a reasonable time, ask if there’s room for negotiation.
Common Reasons Rental Applications Get Denied
One way to better understand how tenant applications and screenings work is to learn what exactly landlords and property managers look for during this process. Specifically, what details in your application and background could raise red flags and make you an unsuitable tenant?
Insufficient Income
The general rule of thumb is that your rent should not cost more than 30% of your monthly income. This helps ensure that you have sustainable and livable funds while you rent the property. If you can’t meet this, that will be a cause of concern and a potential red flag.
Poor Credit History
Your credit history provides insight into your overall financial habits and capabilities. Aside from your credit score, landlords also look into your payment habits, debt, loans, and more to see how well you manage and handle your finances.
Unfavorable Rental History
Other than your financial status, landlords also look into your personal background. This includes your previous rental records and history. The tenant screening process can see if you have past evictions, or outstanding balances.
Negative Character References
Tenant screening also looks into you personally. In particular, it checks your ability and suitability as a tenant. To do this, landlords will ask you to provide character references to gauge your reliability, especially when it comes to following payment deadlines and property rules and regulations. Having a bad reputation from your references can harm your application.
Incomplete or Inaccurate Details
Submitting incomplete or inaccurate information in your application form, even if unintentional, can raise a red flag for your landlords. Why? It’s a sign that you may be careless or a reason to question your attention to detail. Not to mention that any wrong information will cause a delay on the whole screening process.
Long-Term Strategy for Getting Approved
With all of these in mind, the question is – how do you get yourself approved to finally secure your dream rental?
First and foremost, you need to address the issues that your landlord or the property manager found in your application. If it’s a relatively low credit score, work towards building a stronger credit status before applying again. For rejections caused by inadequate income, you can consider getting a co-signer or guarantor for your lease, or find a roommate with whom you can split the rent with.
On top of that, make sure that you build a good rapport with your potential landlord or property manager throughout the whole process. Keep every interaction polite and professional so that you’ll be in a better position when it comes to future applications.
Find Your Next Home With Us
Rejections can be frustrating, no matter what. But when it comes to rental property applications, there are ways for you to put yourself in a better position to get approved. First, you need to know why you got denied in the first place and make sure that the reason doesn’t step on your rights as an applicant.
On top of that, it’s essential to understand what criteria makes you a qualified tenant and work through any potential red flags before applying. From inadequate income to negative rental history, try your best to clarify past rental issues, then ask if there’s room for negotiation.
Looking for the next rental property you’ll call home? We at Stone Oak Property Management have an extensive portfolio of properties for you to check out. Come visit our website and view our latest listings in Austin and nearby areas.
