Credit Criteria And Application: Fill & Download for Free

A landlord should aim to fill vacancies with low risk applicants, because you don’t succeed in any business by taking pointless risks.A landlord has an obligation to her tenants, but aside from that she should operate based on self-interest. She is not responsible for providing housing to any one person, and her goal should be to fill her properties with those tenants who are the most likely to pay rent on time, take care of the place, and not create trouble. We aren’t psychic, but we can look at records from the past for indications of behavior in the future. People who have always been good tenants, who have good credit scores and no evictions, judgments, or crimes in their past, are safer choices – common sense and and a wealth of data tells us that, so landlords should pick applicants who meet as many of these criteria as possible.If you don’t have any references from past landlords because it’s your first time living away from home, I have no way to gauge your level of risk. You’re not high risk like someone who has bad credit or has been evicted, so unlike them, you shouldn’t be instantly disqualified if you’re the only one to apply in months, but your risk is unknown. As long as the landlord has other applicants who meet the other criteria and have a verifiable rental history, they should choose them over you.It might sound unfair or harsh, but it really is the only sane choice. Landlords spend hundreds of thousands to millions of dollars on their properties, and then we continue to have significant expenses just to own them, so we need to collect rent and protect the buildings from damage. You’re probably not going to destroy the floor and skip out on rent in the middle of the night, but my odds are better if I get a tenant who has spent a decade building a credit score and a reputation as a trustworthy tenant. It’s not that a landlord should reject you as much as it is about her approving the best qualified applicant.I understand that it puts you in a tough spot when you first move out, and it does mean that you won’t get your ideal apartment right away. You’ll have to settle for a place with less competition, where you’re the best candidate, or you might be able to find a private landlord who doesn’t fully understand what he should require in a tenant. If you’re lucky you might find someone who is willing to accept a co-signer and a larger deposit, but no landlord should have to take an unnecessary risk for your sake.

Dear ManmeetGetting a home loan from any housing finance company or a bank would entail similar criteria.First and foremost, the applicant should have the capacity to repay the loanSecond, he should fit into the credit criteria including the performance on loans and other credit instruments that he may have taken in pastThird consideration will be the value of propertyIf the above three criteria are met, then broadly speaking the home loan request should get approved.

Bad credit is the most common disqualifying factor, by far.Past behavior is a decent predictor of future behavior, which is why I never accept applicants who have a history of not paying their bills, or who have been evicted or involved in legal disputes with a landlord. I charge a non-refundable application fee to pay for the background checks and discourage time wasters, and we let people know that a minimum credit score of 650 or 700, depending on the unit they want, is an absolute requirement. You would expect most people to know that they would fail and to decide against paying a fee and having their credit poked, but we still reject more than half of all applications based on hard criteria that would have been totally predictable.Something like 2/3 of those applicants who are rejected based on the checks are rejected because their credit score didn’t meet the minimum, and a small number fail because they have been evicted in the past. Almost all the rest are disqualified because their income is too low to convince me that they can afford the rent even if something else comes up. I don’t want to make it impossible for normal people to rent from me, but I do need tenants to bring home at least three times as much money as their rent will be. That’s still not enough for a sound budget, because your combined living expenses shouldn’t even take up that much of your income, but wages just haven’t kept up with the cost of living.I have some apartments that are as low as $1050 ($950 for those tenants whose lease still needs to be renewed) so all you really need is a monthly income a bit over $3,000 and a credit score of 650. If you meet those criteria and you haven’t been evicted or received a bad reference from a landlord, getting approved won’t be a problem.