Module 6

Question 1

common reasons for rental denials

Answer 1

1. low income
2. outstanding utility bills
3. insufficient savings
4. poor credit history
5. unfavorable rental history
6. bank account overdrafts

Question 2

common reasons for rental denials - low income

description

Answer 2

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

Question 3

common reason for rental denials - low income

solution

Answer 3

• 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

Question 4

common reasons for rental denials - outstanding utility bills

description

Answer 4

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

Question 5

common reasons for rental denials - outstanding utility bills

solution

Answer 5

to improve credit specifically for the purpose of renting, applicants can pay off unpaid utilities before other debts

Question 6

common reasons for rental denials - insufficient savings

description

Answer 6

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

Question 7

common reasons for rental denials - insufficient savings

solution

Answer 7

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

Question 8

common reasons for rental denials - poor credit history

description

Answer 8

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

Question 9

common reasons for rental denials - poor credit history

solution

Answer 9

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

Question 10

common reasons for rental denials - unfavorable rental history

description

Answer 10

landlords may be hesitant to trust an applicant who has been evicted from prior rental properties or who has no rental history

Question 11

common reasons for rental denials - unfavorable rental history

solution

Answer 11

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

Question 12

common reasons for rental denials - bank account overdrafts

description

Answer 12

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

Question 13

common reasons for rental denials - bank account overdrafts

solution

Answer 13

applicants can adjust their financial habits by participating in a financial management education course

subsequently, a housing counselor can confirm the applicant’s participation

Question 14

lease types - written lease

Answer 14

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

Question 15

lease types - oral lease

Answer 15

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

Question 16

tenancy types - contractual tenancy

Answer 16

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

Question 17

tenancy types - tenancy at will

Answer 17

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

Question 18

tenancy types - tenancy at sufferance

Answer 18

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

Question 19

typical tenant responsibilities

Answer 19

• 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

Question 20

typical landlord responsibilities

Answer 20

• 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

Question 21

tenant tips for maintenance

Answer 21

• 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

Question 22

actions to take before signing a lease

Answer 22

• 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

Question 23

renters insurance - content coverage

Answer 23

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

Question 24

renters insurance - loss-of-use coverage

Answer 24

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

Question 25

renters insurance - personal liability coverage

Answer 25

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

Question 26

renters insurance - add-ons

Answer 26

often referred to as “riders” and “endorsements” - common add-ons include:

• earthquake coverage
• business merchandise coverage
• incidental business liability

Question 27

unlawful detainer

Answer 27

the act of remaining in a rental property while in violation of the conditions outlined in the lease

Question 28

writ of possession

Answer 28

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