Mikes Real Estate Blog

I have helped many clients successfully find and lease residential properties. Property types range from Condominiums and Townhomes to Single Family residences. Many rental applicants are not ready to purchase a property or can not qualify for a mortgage due to financial constraints or prior marks on their credit report. An owner of a rental property (referred to as "the lessor" on a lease contract) wants to make sure the applicant (referred to as the "lessee" on a lease contract) is able to make the monthly payments on time and keep the property in good condition during the term of the lease.

What are the usual requirements for leasing a property?

1. A signed application and authorization for credit check. Sometimes the credit check requires a non-refundable fee (somewhere around $40). Other times the owner will ask that the applicant submit a current copy of their credit report.  

2. If the application is accepted, a security deposit is usually required to hold the property. This deposit amount can range widely anywhere from 1 to 2+ months rent.  Any damages to the property incurred during the term of the lease will be deducted from the security at move-out and the remainder refunded to the lessee. 

3. Upon move-in, a check for the first months rent, and any additional agreed upon deposits such as pet fees. 

To be successful in getting the property you are applying for - as an applicant with less than perfect credit, what can you do to help convince them of your ability to make the payments on time?

What can I do to help my chances when applying for a rental with less than perfect credit?

1. Write a letter to the owner introducing yourself, explaining the reason(s) for prior marks on your credit... divorce, job loss, medical bills, etc. This letter will be presented with your application. The reason for the letter is to give the owner an idea of who you are, an explanation of the event(s) that contributed negatively towards your credit, and a reason to rent the property to you. Without this you are just a number on a credit report. 

2. Include the reasons why you want to rent the specific property... near work, in desired school district, close to relatives, near transportation, etc.

3. Outline your employment history and monthly income amount to show stability and the ability to cover the rent and monthly bills.

4. Include references such as employer contact information, previous landlord contact information, personal and professional referrals.

5. If credit and employment history are not verifiable or in really bad shape, you may want to list a cosigner that would also sign the lease and agree to assume financial responsibility that the payments will be made on time. This could be an employer, family member, friend, ... anyone with good verifiable credit and employment history.

6. Inquire about a longer lease term. This will save the owner on move-in and move-out expenses.

7. Offer to pay a larger deposit or a certain amount of months rent in advance. 

How do I find properties to rent?

If you let me know what areas you are looking in, and what requirements you have such as: type of property, location, rent amount limit, bedrooms, bathrooms, pets allowed, yard, garage, basement, etc. I will set up a custom search for you in ConnectMLS that will send you listings that meet your requirements directly to your email for you to preview at your convenience.

As a Realtor®, Accredited Buyer Representative ABR®, and Short Sale Foreclosure Resource SFR®, I can help guide you thru the home search, buying, selling, or leasing process. Feel free to call or email me if I can help you with your real estate needs.

Michael Skerrett ABR® SFR®

Realtor®
Milestone Realtors
Cell: 630-310-9587
Web: www.michaelskerrett.com
E-mail: mike@michaelskerrett.com