Module 6 Flashcards
common reasons for rental denials
- low income
- outstanding utility bills
- insufficient savings
- poor credit history
- unfavorable rental history
- bank account overdrafts
common reasons for rental denials - low income
description
landlords may request paycheck stubs or other documents from applicants to verify monthly income
some have a policy to reject applicants when the stated monthly rent exceeds 30% of the applicant’s gross monthly income
common reason for rental denials - low income
solution
- consider applying for housing assistance programs for which you are eligible
- expand housing search areas
- share rental units and expenses with roommates - it is best to select a roommate who is dependable and will be able to pay his/her portion of the rent for the duration of the tenancy
- move in with family or friends and contribute to their rent
common reasons for rental denials - outstanding utility bills
description
landlords may deny an application if the applicant has any unpaid debts, including utilities, related to previous rentals
unpaid utilities will often appear on the applicant’s credit report
common reasons for rental denials - outstanding utility bills
solution
to improve credit specifically for the purpose of renting, applicants can pay off unpaid utilities before other debts
common reasons for rental denials - insufficient savings
description
landlords will expect renters to have sufficient savings to pay upfront costs associated with renting, including:
- credit report fee
- security depost
- first month’s rent
- last month’s rent
- moving expenses
- appliances
- connection fee for utilities
- outstanding utility bills
common reasons for rental denials - insufficient savings
solution
to prepare to cover upfront rental costs, potential tenants can plan ahead and use budgets
to reduce upfront rental costs, individuals may:
- seek to rent from an individual landlord rather than a rental management company - individual landlords may be more likely to waive or negotiate lower prices for various upfront costs
- ask friends and relatives to help them move
- buy refurbished appliances
common reasons for rental denials - poor credit history
description
landlords typically run a credit report on applicants; info that might concern them includes:
- low credit score
- history of late payments to creditors
- collections or judgments
- bankruptcy or foreclosure
common reasons for rental denials - poor credit history
solution
to reduce a landlord’s concern about issues stated on a credit report, an applicant can:
- explain reasons for the issues
- describe steps taken to correct the issues
common reasons for rental denials - unfavorable rental history
description
landlords may be hesitant to trust an applicant who has been evicted from prior rental properties or who has no rental history
common reasons for rental denials - unfavorable rental history
solution
applicants can provide a landlord with proof of capacity for responsible tenancy, such as:
- a letter from a friend or relative with whom they previously lived and to whom they informally paid rent
- a letter from a housing counselor confirming that they have participated in tenancy counseling and are now aware of the related rights and responsibilities
- a reference of a landlord with whom they have had no disputes
common reasons for rental denials - bank account overdrafts
description
landlords may not trust an applicant’s ability to pay monthly rent responsibly when the applicant has a history of overdrafts on a bank account, leading to bounced checks and other issues
bank overdrafts occur when an account does not have sufficient funds to cover a payment, such as covering a check written from that account
common reasons for rental denials - bank account overdrafts
solution
applicants can adjust their financial habits by participating in a financial management education course
subsequently, a housing counselor can confirm the applicant’s participation
lease types - written lease
a written document outlining the terms by which a property will be rented
written leases provide security and can simplify the process of resolving conflicts
lease types - oral lease
an agreement that is discussed verbally, but not put in writing, which outlines the terms by which a property will be rented
oral leases are recognized and enforced in many states, but they rely simply on the memories of involved parties and thus can lead to arguments
tenancy types - contractual tenancy
an arrangement in which both a tenant and a landlord sign an official lease, which outlines a fixed term of tenancy, a rent payment process, and other rental conditions
tenancy types - tenancy at will
an arrangement in which the tenant receives permission from the homeowner to reside in a home without a formal lease, rent payment, or a specified rental period
tenancy types - tenancy at sufferance
an arrangement in which a tenant is allowed to reside in a home after a lease has expired as long as they continue to meet the conditions of the original lease
typical tenant responsibilities
- remove trash regularly
- keep the unit as clean and safe as conditions permit
- repair any damage residents or guests cause to the unit
- notify the landlord immediately of major damage
- ensure the property is clean and in good condition upon move out
typical landlord responsibilities
- inspect the unit as needed
- make repairs soon after the tenant submits a work order
- ensure locks and windows are safe
- repair and replace large home systems and appliances as needed, including the heater, stove, and refrigerator
- ensure unit is in compliance with housing codes
- maintain common areas, such as entryways, hallways, parking lots, and decks
- provide adequate fire protection
- maintain properly functioning plumbing and heating systems
- ensure the home is in good condition when a new tenant moves in
tenant tips for maintenance
- be persistent in contacting the landlord when household items need repair
- complete a home inspection before moving in
- complete a home inspection when moving out
actions to take before signing a lease
- understand all conditions outlined in the lease
- verify that the lease does not contain any blank areas
- ensure that any promises made by the landlord have been put in writing
- review the term of the lease and any other important dates, such as when the rent is due
renters insurance - content coverage
contents coverage is also known as personal possessions coverage
contents coverage reimburses policyholders for personal property destroyed by certain perils
depending on the policy, insurers can reimburse the tenant for damaged clothing, furniture, household items, musical instruments, laptops, and other items
renters insurance - loss-of-use coverage
aka additional living expense coverage
it provides funding for housing and food expenses of policyholders who temporarily cannot live in their rental home when it is damaged or destroyed by certain perils
renters insurance - personal liability coverage
provides funding for a defense lawyer or legal judgment if a policyholder is sued for a negligent act that led to a guest’s injury
renters insurance - add-ons
often referred to as “riders” and “endorsements” - common add-ons include:
- earthquake coverage
- business merchandise coverage
- incidental business liability
unlawful detainer
the act of remaining in a rental property while in violation of the conditions outlined in the lease
writ of possession
a court order that serves as an eviction from a property
the writ outlines the specific time a person has to vacate the property before authorizing an official to forcibly remove a person and their belongings from a property
