The Biggest Reasons Your Rental Application Was Denied

Finding the perfect rental is exciting, but sometimes applications get denied without further communication, leaving you confused and frustrated. While it can be discouraging, understanding the common reasons for denials can help you improve your chances for future applications. Here's a breakdown of some key areas landlords often scrutinize.

Poor Credit History

A low credit score can be a red flag for landlords. A credit report is a normal part of tenant screening, and will show a landlord your debt-to income ratio and if you have any outstanding bills.

If you did not pay your utility bills and they ultimately went to collections, a landlord could infer that means you won't pay your rent in the future. Additionally, outstanding debts or delinquencies on previous accounts raise concerns about your overall financial stability.

If your credit score is below the national average, start taking steps to improve it now. You can also ask any future landlords if they will approve a co-signer or accept a higher security deposit to allow you to rent the property.

Inadequate Income

If a landlord is reviewing a rental application and notices that the applicant does not make enough money to reasonably pay for the apartment at hand, they may deny the application.

In an ideal world, rent payments account for 30 percent of your monthly income. If someone makes $50,000 a year, they should budget $15,000 a year for rent or approximately $1,250 a month. If your monthly income is not 3x the amount of rent, a landlord may decide that your income is inadequate and deny your rental application.

Eviction History

An eviction on your record is a major cause for concern. It suggests potential issues with following lease agreements and fulfilling financial obligations, making landlords hesitant to take a chance.

If you do have an eviction on your rental history, you may want to discuss it upfront and explain your side of the situation on the application.

Criminal Activity

Certain criminal offenses might disqualify you depending on the severity and the landlord's policy. It's important to be upfront about any criminal background and be prepared to discuss it if necessary.

It is illegal for a landlord to deny you housing for having a criminal record or for being arrested. However, if you have been convicted of a dangerous crime that would put the property, community or other tenants at risk your application can be denied.

Bad References from Former Landlords

Bad references from previous landlords can paint a picture of irresponsibility. If you have strained relationships with past landlords, try to address any outstanding issues or consider getting a character reference from someone else familiar with your tenancy history.

It would be in their best interests for applicants to request a letter from their previous landlord stating how long they resided in the property, and the landlord's overall experience with you as their tenant. A good landlord reference letter will do wonders for giving a potential new landlord the security they need to feel comfortable renting to you.

Missing Information on Application

Leaving sections of the rental application blank raises doubts about your attention to detail and responsibility. A complete and well-organized application shows professionalism and makes a positive first impression. If you intentionally leave part of your application blank, forget to include relevant information or fail to complete the application, you may be denied. Take time to review your application before submitting to verify that you have filled it out to the best of your ability.

False Information on Application

Providing false information on your application is a big red flag. Not only can it be grounds for immediate denial, but it also damages your credibility and trustworthiness.

Landlords and property managers have a variety of tools at their disposal that allows them to verify your employment, credit, and criminal history. If you have a criminal background or a low credit score and are worried you not get approved for a rental home, you should be upfront with the landlord when applying.

In some cases, the landlord will allow you to rent the home provided you have a co-signer. However, if they find out you lied or omitted information about yourself, you are more likely to get denied. If you lie about anything on your rental application, it's highly likely a property manager or landlord will find out and deny you.

Too Many Occupants

Exceeding the allowed number of occupants might violate fire codes or lease agreements, leading to denial. Be upfront about the number of people who will be residing in the unit.

You Own Pets

Despite the fact that over 70% of renters have pets, pet restrictions are common and many rental properties do not allow pets of any kind. If you have furry friends and the property doesn't allow them, your application might be denied. Be clear about any pets you have, including their breed and weight, and inquire about pet policies before submitting your application. Never try to sneak in a pet, as you run the risk of being caught sooner rather than later and could face an eviction for lease violation.

Remember, Denial Isn't the End:

1. Don't despair! If your application gets denied, take the time to understand the reason. If it's something you can address, such as improving your credit score or gathering stronger references, take action before applying again.
2. Be proactive! Gather the necessary documents, explain any discrepancies in your application history, and provide strong references to improve your chances next time.
3. Ask for Feedback: If you're confused about why you were rejected, you may want to ask the landlord for feedback on your application. They may be willing to let you know what was the tipping point for denying your application

Landlords are interested in quickly filling any vacancies in their rental property in order to start collecting rental income right away. Despite this eagerness, they will not do so at the risk of approving an unqualified or high-risk renter. Make sure your application stands out to your future landlord or property manager by doing your best to avoid all the rental application denial reasons provided above. By being prepared, honest and presenting yourself professionally, you can increase your chances of landing your dream rental.

Thinking of applying for a rental? We can help!

Created on: 04/10/24

Author: CreditLink Secure Blog Team

Tags: late payment, eviction history , pets , bad credit , low credit , rental application , denial , denied application , tenant , renter,