NO RENTAL REFERENCES???
Hey there, I did a video on this but writing it down for some of you.
BOLD FIRST NOTE- these are suggestions, NOT GUARANTEES,
only sharing personal stories that have worked in past deals.
So you’re ready to fly the nest? Congratulations, that is a BIG first step into adulthood.
Seriously, monthly bills, big step into adulthood.
Now it’s your first time, naturally you have no rental references
& here is how we will finesse the system a bit.
#1 We make sure any future landlord and their agent know
every last cent & every last bank account that we have.
Proof of cold hard cash, HELPFUL!
#2 We are calling your boss, or HR, whoever we need to get these two things.
We want a Letter of Employment & are politely asking for a letter of personal recommendation.
When asking, please let your boss know you are looking for a place to live not a new job. T
his way you don’t freak them out + you get a better letter : )
TA DAHH- We now have proof of employment which we collect up with pay stubs (2-3 of them)
+ we add a PERSONAL REFERENCE to our rental application.
These are all great things when submitting an offer.
#3 We might need to phone a friend, parent or rich auntie,
somebody solid & see if they will be your guarantor.
WHAT DOES THIS MEAN ???????
In short form- The lease is still in your name however,
skip town, trash the place, default on rent etc. the landlord can LEGALLY go after you and/or your guarantor. Generally students will use guarantors (at least in the deals I do).
Students who have no earnings, since they are full time students,
parents will be guarantors for a lease (think students studying abroad).
Since they have no earnings for a landlord to see,
a guarantor + you will be on lease
and their credit + proof of income
will be “GUARANTEED” cold hard cash to pay the rent.
Now, speaking of CHC (cold hard cash), let’s have the money talk.
So…… Legally, a landlord cannot ask for more than first & last,
HOWEVER, legally they can accept much more than first & last if offered.
This may stun you, but it happens & people offer
multiple months of rent up front for multiple reasons.
My approach, (if financially possible of course) is this.
FOR EVERY DING ON YOUR APPLICATION DUMP A MONTH INTO THE DEPOSIT!
A list of potential “dings”* that could impact your offer,
Low Credit
Self Employment
Earnings below a threshold in comparison to monthly rent
First time renters & large groups of people (think a group all pitch in for one bigger place)
*Again, these are only suggestions & I always suggest leaving multiple months of rent out of the equation unless absolutely necessary & only after an offer has been initiated, your agent has spoken with the listing agent, you know if there are multiple offers, newness of the listing etc. etc. An offer is always put together in several pieces, showing your earnings, your credit, who knows you, years at your job speak to consistency, etc etc. As a realtor it is my job to package you and your information up to look like a solid candidate. This always starts with conversations with listing agents and speaking with you my client and ensuring we present everything we have and at least stand a chance for thorough review and we work with the offer step by step. When you are ready to rent please have these discussions and explain what you are comfortable with, with your agent.
Side bar- would love to be your agent of choice when renting so reach out : )
Lastly, ALWAYS USE A REALTOR WHEN RENTING.
It may not be me but always use a professional to review everything and assist you in showings and protect your information & watch out for any scams out there.
Have an awesome day from wherever you are reading this & in the comments please share your wildest renting stories, first apartment stories, horror stories. Anything at all, they are always fun to read.