Trying to get an apartment, especially in a place like Texas, can feel like a challenge. With the growing demand for rental properties in metro areas such as Houston, Dallas, and Austin, knowing what you need to apply for rentals can be a huge advantage. So, what do you need to get an apartment in Texas? Continue reading to find out.
Key Takeaways:
- To answer, “what do you need to get an apartment,” your monthly income should be at least three times the rent. This shows you can comfortably afford both the rent and other expenses.
- Also, a strong credit score signals you’re financially stable. You should have credit that meets or exceeds your landlord’s requirements to get an apartment.
- In addition, your references play a huge role in supporting your character and building your image as a qualified tenant. That’s also critical to get an apartment.
Proof of Income
When you apply to become a tenant, the first thing you need to get an apartment is prove to the landlord that you can afford the rent. From our experience as a property manager in San Antonio, one of the first things that we look into is the documents supporting your finances. Landlords ask for documents that prove your source of income and show your financial qualifications. Here is a rundown of the different documents that you can submit as proof:
Pay stubs
These are the pay statements from your employer showing how much you earned. The common practice in the rental industry is to submit your last 2 to 4 pay stubs. Essentially, it shows that you have been generating income consistently for the past months.
Bank Statements
Your bank statements show a comprehensive report of your financial record. Typically, landlords use this as a supporting document to verify your source of income and finances. As you can imagine, these documents should show that your income is enough to cover the rent qualifications.
Job Offer Letter
For prospective tenants who are starting a new job, you can use the signed job offer letter from your employer as proof of future income. Primarily, this document should state your job title, hourly rate or salary, as well as your start date.
Tax Returns
Self-employed individuals, independent contractors, and freelancers can submit their income tax returns as proof. Provide the most recent copy and explain any significant changes from your year-to-year report. Also, you should have these in conjunction with something else, like bank statements. These don’t hold up well on their own.
Also, no matter your method, remember this: as a rule, your monthly income should be at least three times the amount of your monthly rent.
Credit Score
Credit is another important factor that landlords consider during tenant applications. Here, they will look into not only your credit score but also your overall credit report to gain better insight into your long-term financial history.
Your credit score ranges from 300 to 850, with anything 670 and above considered good. But why does this matter? In the simplest terms, your credit score is an indication of your financial health and patterns. It reflects your financial choices and how well you manage your financial responsibilities. Therefore, if you have a low credit score, you are going to have a tough time qualifying.
With all of these in mind, what can you do to get an apartment if you don’t have any credit or a low credit score? In these cases, you can provide bank statements showing your financial qualifications. You can also get a co-signer or guarantor for your lease, but we’ll discuss that later in this article.
Background Check and Rental History
The process of getting an apartment also includes comprehensive background checks. It’s a critical tool that landlords use to gain a deeper understanding of an applicant’s qualifications as a tenant.
Also, you should keep in mind that landlord background checks must align with federal fair housing laws. According to the American Apartment Owners Association (AAOA), landlords in Texas can look into applicants’ backgrounds as long as they have signed permission. Through this pre-screening process, Texas landlords have legal grounds to deny applications based on the applicant’s:
- Current income
- Credit history
- Previous rental history
- Criminal history
- Failure to provide accurate and complete information on their application form
So, these are all crucial things to keep in mind as you work to get an apartment.
References
In tenant applications, references play a huge role in boosting your chance to get an apartment. First, landlords ask for references to learn more about you from a different perspective. Aside from your previous landlord, you can also provide a list of personal references that can support your character. You can ask your employer, co-workers, mentor, and the like to do this for you.
Co-Signers and Guarantors
You might have heard us mention co-signers and guarantors before, and you’re probably wondering what they are. So, let’s get into that.
Let’s say that you have no credit, so you’re unlikely to pass the financial requirements on your own. When you’re not in the best financial position to qualify for an apartment, a co-signer or guarantor can share the legal responsibility of your lease.
Although used interchangeably with one another, co-signers and guarantors have different roles and responsibilities in tenant applications. First, both co-signers and guarantors need to pass a stringent qualification process. They must have excellent credit and make a significant amount in income to shoulder the financial burden if the lessee defaults. Here’s a brief comparison between the two:
- Cosigner – Equally responsible and on the lease; So, if the tenant fails to pay, the landlord can go directly after the cosigner for payment.
- Guarantor – Liable only after the tenant fails to pay through a contract separate from the lease, they have no rights to occupy the unit, are not listed on the lease, and the landlord must make efforts to collect from the tenant before pursuing the guarantor.
So, if you require support improving your qualifications in the eyes of a landlord, co-signers and guarantors may be a way of helping you get an apartment.
Security Deposits and Fees
Most landlords ask for an application fee to cover the cost of running tenant credit and background checks. This is a one-time expense, roughly $25 to $50, and is non-refundable regardless of the outcome of the tenant screening process.
When you are approved to get an apartment, you are likely going to pay a holding deposit, which is typically around $500 or so. The holding deposit demonstrates your intent as an applicant to move forward with the lease. It literally “holds” the property as it will be removed from the market, and the lease/move-in process will continue. If you do go through with the lease signing, the holding deposit is applied to the first month’s rent or security deposit balance.
If you do not go through with the lease, the holding deposit is typically non-refundable and goes to the landlord for lost marketing time, etc. Also, if multiple applicants approved for the same property, whoever signs the Holding Agreement and pays the holding fee first gets the unit.
Meanwhile, security deposits serve a different purpose. Once the lease is signed, before you take possession of the keys, you have to pay a security deposit. Typically, that equals 1 to 2 months’ rent. Essentially, they can use it to cover the repair of damage caused by the tenant throughout their lease. However, they will refund your security deposit to you if they find you kept the unit in shape.
How Bay Property Management Group Can Help You to Get an Apartment
Knowing the answer to, “what do you need to get an apartment in Texas” is important for preparing your application. As a prospective tenant, a key element of this screening process is to determine your financial and other qualifications. You’re going to need to provide proof of your income and a strong credit record. Also, don’t forget about your references, since they will provide your landlord with insight into your background and character as a tenant. Knowing all this can help you know how to get an apartment with more confidence.
That said, we know that trying to get an apartment can still feel overwhelming. That is why, at Bay Property Management Group, we aim to provide you with the support and guidance you need to make this process easier. As property managers, we take a tenant-focused approach in our screening process. We make sure our assessments comply with tenants’ rights on a federal and local level. Our biggest goal is to provide transparency, fairness, and consistency across all tenant applications.
Ready to take steps toward getting your ideal home? Connect with our property management services and visit our website to check our latest property listings in the Texas area.
