If you are renting an apartment for the first time and find the perfect apartment, you may run into problems renting it if your income is not high enough. Some landlords use pre-set income standards to determine if an application meets the guidelines for renting, and this could ruin your chances of getting approved. Here are two things to know about this before you start looking for an apartment to rent.
What is the pre-set standard?
When landlords use pre-set standards, it means they have a percentage they use to determine if an applicant has the ability to pay for the rent. This percentage is usually around 40%, but it can be 50% in some cases.
To calculate this, you must add up all your income for the year. This can include your regular wages, commissions, bonuses, and child support or alimony. You must then look at rent prices.
For example, if you are considering getting an apartment that has a monthly rate of $1,000, you must multiple this amount times the percentage. For example, 40% times $1,000, is $40,000. To rent an apartment with a 40% rate that is $1,000 a month, your annual income must be at least $40,000.
What options are there if you do not meet this requirement?
If you do not have enough income to cover this pre-set standard, there are several options you could consider, including:
- Locate a different apartment – You could look for an apartment that is cheaper than this amount, or you could look for one that does not have pre-set income requirements. This is something you could ask the landlord when you call about apartments for rent.
- Find a roommate – Another option is to look for a roommate to share the unit with. If the unit is big enough for two people, you could share the apartment and all the costs. In this case, the landlord would add up the incomes of both applicants, and this would probably help you meet the requirement.
- Get a cosigner – A third option is to get someone to cosign for you. This is also called a guarantor. The person that signs for you would then become responsible for paying the rent if you fail to, and this option is available with most rental companies. The person that signs for you must have good credit and verifiable income.
Finding the right apartment to rent can take time, and it may take applying for several units before you can get approved. If you would like to learn more about this, contact a landlord that has apartments for rent.