The exterior of a nicely maintained apartment building.

 

When landlords screen would-be tenants, they look for financial reliability and safety around their property and other tenants. To be financially reliable, the tenant applicant must prove they're financially stable and manage their income well. Safety considerations involve proving character through effective communication, proactive effort, and reliable references.

 

This guide explores the 12 circumstances that can disqualify you from renting an apartment. We'll explore why landlords may reject an application based on these factors and provide actionable steps to address and remedy each situation.

 

12 Factors to What Can Disqualify You From Renting an Apartment

 

If your rental application has been declined, it's advisable to contact the landlord for feedback. Constructive feedback can help you understand the reasons for the denial and improve your prospects for future applications. Below are the 12 factors that commonly lead to rental application denials: ​

  • There are Many Applicants, and You Applied Too Late
  • Application Errors of Renters
  • Your Income is Not Enough for Rent
  • Poor Credit Score
  • Your Debt-to-Income Ratio is Outside a Landlord's Threshold
  • Presence of Evictions in Rental History
  • Presence of Frequent Moving in Rental History
  • Convictions or Evidence of Illegal Activity Found During Background Checks
  • Faulty References
  • Number of Occupants Allowed as Tenants
  • Smoking
  • Pets

Being transparent about any of these factors is crucial during the application process. Failure to disclose significant details to the landlord may lead to complications and potential eviction later on.

 

 

#1 There are Many Applicants, and You Applied Too Late

In some areas with high apartment demand, it's not uncommon for numerous applicants to vie for the same property.

 

Many applicants would do the smart thing in choosing an apartment: They'd look at many apartments for rent and then weigh the pros and cons. 

 

However, some applicants can make this common mistake: they only apply to their favorite apartment.

 

What to Do:

To increase your chances of securing a rental, it's crucial to act swiftly. Apply once you find a place you like and are qualified for. Then, move on to look for other apartment spaces and repeat. 

 

This proactive approach ensures that your application is among the first to be reviewed by landlords, who often process applications on a first-come, first-served basis.

 

 

#2 Application Errors of Renters

Here are some common mistakes tenant applicants may make during the application process:

 

Filling out the Form

Landlords use forms to assess applicants. When a filled-out form is incomplete or missing important information, the landlord has a valid reason to deny the application and move on to the next applicant. 

 

Document Submission

Landlords are keen to avoid forged documents. If the required documents are submitted in the wrong format, their anti-fraud software will reject said submissions.

 

Tenant Interview

The interview reflects the tenant's compatibility and ability to follow the landlord's rules upon agreement. Arriving late, displaying unprofessional behavior, or being rude during the interview can negatively impact the applicant's standing and future rental relationship with the landlord and property.

 

What to Do:

After completing your tenant application form, thoroughly review it to ensure all sections are filled out accurately. Familiarize yourself with the required document formats to avoid potential rejections. Treat the landlord interview like a job interview: arrive punctually and be professional and courteous.

 

 

#3 Your Income is Not Enough for Rent

According to the Office of Policy Development and Research, US housing costs must be 30% below income to afford housing. For instance, the average monthly rent is $1,377 in Spokane, Washington. Therefore, applicants are generally expected to earn at least $4,590 monthly to afford rental expenses comfortably.

The landlord will ask for pay stubs, bank statements, and employer references to verify income. These documents help confirm whether the applicant has a steady and reliable income to meet rental obligations. Failure to demonstrate adequate income may result in the application being disqualified.

 

What to Do:

Make sure that your required income documents (pay stubs or bank statements) match the income listed in your application. Any discrepancies between the stated income and supporting documentation could result in automatic disqualification. 

 

Fabricating or inflating income information also risks potential legal consequences. It's essential to accurately and honestly fill out the rental application to avoid such pitfalls.

 

 

#4 Poor Credit Score

Landlords assess applicants' credit scores to measure their financial responsibility and management. A low credit score can signify a history of late payments or economic hardships, raising concerns if the applicant can meet rent obligations promptly.

A favorable FICO credit score typically falls around 670. FICO, or Fair Isaac Corporation, scores are widely used to evaluate creditworthiness based on credit history.

 

What to Do:

If your credit score is low, consider alternative arrangements to secure the rental. Options include offering a higher security deposit or rent upfront for several months. Doing so gives your landlord more cushion to fall back on if you default on your lease.

 

Another approach is to enlist a guarantor who commits to covering rent payments in the event of default. Guarantors can be trusted family members or third-party services. However, they typically need to meet higher income requirements than tenants.

 

Additionally, actively work on improving your credit score over time. Credit scores can be improved with on-time bill payments and maintaining low credit card balances. Consider exploring credit builder loans and rent reporting services. These services enable credit improvement without the risks of maxing out your credit card.

 

We also recommend contacting a second chance approval service company. This service refers to properties that accommodate credit issues.

 

 

#5 Your Debt-to-Income Ratio is Outside a Landlord's Threshold

The ratio of your monthly debt payments to your monthly income is called debt-to-income (DTI) ratio. A high DTI suggests that most of your income goes to debt repayment. It signals potential financial instability and challenges in meeting rental obligations on time.

Landlords determine their DTI thresholds, guided by the Fair Housing Act. Their regulations prohibit them from setting disproportionately high thresholds that may discriminate against low-income renters.

According to the Motley Fool, an ideal DTI typically falls at or below 35%. If your DTI ranges between 36% and 49%, it may still be acceptable, but landlords may scrutinize additional factors to assess your suitability as a tenant.

 

What to Do:

You can lower your DTI ratio by taking care of smaller debts. Consider augmenting your income to facilitate higher debt repayments.

 

Negotiating reduced interest rates with creditors or obtaining a loan co-signer can also help alleviate financial strain and reduce one's DTI ratio.

 

 

#6 Presence of Evictions in Rental History

A history of previous evictions can lower the chances of being approved as a tenant.

A landlord checks for eviction history by asking the applicant for their previous landlords' contact information.

They can also check an applicant's eviction history by checking their court records. Court records can be accessed by visiting the courthouse, their state's website, or asking the courthouse for a mailed copy.

 

What to Do:

If you have a history of evictions, it's advisable to be transparent with your landlord. Providing context, such as a job loss or medical emergency, can mitigate the negative perception associated with evictions.

 

Additionally, furnishing references from previous landlords, employers, or other reputable individuals can prove your reliability.

 

Offering increased financial security can remedy landlord concerns in cases where references are limited. Consider proposing a larger security deposit, advance rent payments, or securing a financially stable co-signer. You can also show your commitment to pay on time by having automatic payments.

 

Alternatively, explore second-chance leasing programs tailored for individuals with eviction histories to find a suitable apartment within the area.

 

 

#7 Presence of Frequent Moving in Rental History

Even without an eviction history, frequent moving can raise red flags for landlords. Frequent relocation patterns may signal financial instability, posing concerns regarding potential disruptions to the property and increased turnover costs.

 

What to Do:

Similar to what to do in case of eviction history, applicants can bolster their credibility by providing references from previous landlords, employers, or other reputable individuals. A prior landlord with whom an applicant had a good relationship can reassure the new landlord that the applicant pays on time and takes care of their rented property.

 

In cases where references are limited, offering a larger security deposit, advance rent payments, or securing a financially stable co-signer can assuage landlord apprehensions. Timely payments through automatic payment setups can further reinforce tenant reliability.

 

 

#8 Convictions or Evidence of Illegal Activity Found During Background Checks

Landlords conduct thorough background checks to ensure the safety of their tenants and property. Before the landlord performs a background check, applicants must sign a release form authorizing the landlord to do so. 

The background check involves scrutinizing criminal records across federal, state, and county offices for the following:

  • Aliases

  • Physical descriptions

  • Arrests

  • Convictions

  • Pending criminal charges

  • Prison sentences served

  • FBI reports on terrorism suspects

  • Sex offender status

However, rejecting an applicant solely on a criminal record is not a fair basis for rental denial. A landlord must use caution in assessing the applicant's record and its relevance to being a responsible tenant.

 

What to Do:

If you have a history of illegal activity, it is best to be transparent with your landlord. Explain the actions you've taken towards rehabilitation. Furthermore, you can prove your commitment to the law and being a responsible tenant by providing character references.

 

A second-chance leasing company can also help people with criminal histories find living spaces to rent.

 

 

#9 Faulty References

References allow landlords to assess a tenant's character and reliability. When provided with contact information for previous landlords, landlords typically inquire about the tenant's rent payment history, property maintenance practices, and general behavior.

However, if the reference contact information is inaccurate or non-responsive, it can raise doubts about the applicant's credibility and may lead to application denial.

 

What to Do:

Before submitting any references, double-check the contact information to ensure it's correct.

 

Address any outstanding issues with previous landlords, such as unresolved disputes, to improve your references. If problems arise from unfair treatment, seek legal advice to determine your following action. You can also write a letter of explanation to your new landlord, emphasizing your commitment to be a responsible tenant. 

 

Furthermore, applicants can look for positive references demonstrating their financial stability and responsibility. This may include providing proof of income, offering a larger security deposit, or securing a reputable co-signer or guarantor to vouch for their reliability.

 

 

#10 Number of Occupants Allowed as Tenants

Landlords maintain the right to deny rental applications if the number of proposed occupants exceeds the legal limit based on local, state, or federal housing laws. 

Under the Fair Housing Act, two tenants are permitted per bedroom. However, landlords may justify a lower or higher occupancy limit within the constraints of local regulations. Factors influencing the occupancy limit include occupant and property safety, the occupants' age, and the rental property's size.​

 

What to Do:

When searching for rental accommodations, tenant applicants must prioritize properties with occupancy limits that align with their household size. Ensuring compatibility with occupancy regulations can minimize the risk of denial based on occupancy limitations.

 

 

#11 Smoking

Smoking presents a significant fire hazard in many apartments. Therefore, landlords incorporate strict no-smoking policies in their rental agreements. By doing so, they uphold a safe living environment and prevent smoking-related property damage. If a tenant applicant smokes, landlords may hesitate to approve them.​ 

 

What to Do:

If you smoke, it is best to be upfront about it when applying for rent apartments. Prove your commitment to non-smoking policies by providing references from past landlords about your adherence to their non-smoking policies. 

 

Additionally, smokers can discuss potential safety measures, such as establishing designated smoking areas outside the property. To address landlord concerns about property damage, applicants can consider offering increased security deposits. They can also include professional cleaning provisions at the end of the lease term in the rental agreement.

 

 

#12 Pets

A survey by FIREPAW, Inc. revealed that approximately half of rental units are pet-friendly. However, only 9% of these accommodations allow pets without significant size or type limitations. 

Most apartments enforce strict no-pet policies, except for service animals, which are protected by law. Attempting to sneak pets into non-pet-friendly flats can lead to discovery and subsequent eviction.

 

What to Do:

When searching for an apartment, it's essential to review their pet policies. If no apartments can accommodate your pet, ensure they’re with someone who can take them in.

 

What Landlords CANNOT Disqualify You For to Rent an Apartment

While landlords can legally reject your tenant application for the above reasons, the Fair Housing Act does not allow them to deny renting applications based on the following:

  • Race, Color, or National Origin
  • Citizenship
  • Religion
  • Gender or Gender Identity
  • Sexual Orientation
  • Age
  • Familial Status
  • Disability
  • Source of Income

Know more about your rights as a tenant in Washington, Idaho, Oregon, and Montana.

 

Successful Apartment Renting Where You and Landlords Will Benefit

Applying for apartments can be exhausting but rewarding: you'll have an apartment you can call home. There are reasons to what can disqualify you from renting an apartment. Still, with good references, assistive services, and actionable steps, you're bound to find an apartment that meets your needs and preferences. Trust is a two-way street. Don't forget that you can negotiate with your landlord where both of you would benefit when renting with them.

 

Ready to embark on your apartment search? Explore our range of apartments in Spokane, W, to kickstart your journey towards finding your perfect home.