Preparing for a Rental Open House

You graduated from college, found a job, and are now ready to move into your first big boy/girl apartment. Congrats!

You looked through Craigslist and found several possible contenders. Some have open houses, for others you called/emailed and made an appointment. But you should do more than just show up at the designated time. (Though do show up a few minutes early to maximize your alone time with the prospective landlord.)

If you’re serious about moving, you need to arrive at the property ready to commit (at least 90% there.) If you like the property at the showing, you should apply on the spot. You’re not signing the lease agreement yet, so you can still back out later. But if you wait to apply after the open house, you may have missed your chance. This may not be the case in small towns, but in big cities where many residents are renters and turnover is high, landlords choose their tenants based on the first satisfactory application submitted. You can improve your chances by having most of the application process completed before you even arrive at the showing, and by completing the rest at the showing.

Most landlords will require an application, which will be available at the showing. Have a pen with you so you can complete the application on the spot. The application will ask for certain information, which you should have ready:

1. Current and past addresses and landlords
1. Print out a list of your addresses and landlord names/phone numbers. If your landlord is a management company, you can state the management company name. If you are a good tenant, talk to your current or previous landlords to give them a heads up to give you a stellar recommendation.
2. Recent credit report
1. Please see my previous post on how to print a free credit report.
2. Check your credit report for accuracy ahead of time, so that you can correct any mistakes prior to the application.
3. Current employer information and proof of income
1. In most places, landlords will check that the monthly rent does not exceed 30% of your income. For example, if your gross (pre-tax) monthly pay is $4000, you can afford to pay $1200 on rent. In bigger cities where rent is more expensive, landlords will relax this rule to 50% or more.
2. Print your last two pay stubs -- this will be proof of your income, and will also list your employer information for the application.
4. Bank statements
1. While optional, this is especially important if your income is too low for the 30%/50% rule above, or if you work for yourself and therefore do not receive a pay stub. Print your last two bank statements to show the prospective landlord that you have enough savings to pay the rent even if you lose your job for a few months.
2. Your most recent tax return (just the first page) can also document your income.
3. If you haven’t started your job yet, bring your signed offer letter stating your salary.
5. Copy of ID/driver’s license -- to confirm your identity.
6. Co-signer, if needed
1. If you do not have substantial income, someone (like a parent) can co-sign the application. S/he will not live in the apartment, but will be responsible for payment if you fail to pay your rent.
2. If you are applying with roommates or a significant other, have the above for each applicant.

You should attach all of this to your application. Of course, make copies of all the documents, and only give a copy (not the original) with the application. Have this “pack” prepared for all the showings you attend. In a small city, you may get the first apartment to which you apply. In a big city, however, expect to apply to several apartments and hope to hear back from at least one.

One more thing that can help when the competition is tough: a bio. Write a little bio about yourself. Include the reasons that you are moving, your excellent reputation as a tenant, why you love the neighborhood or this building, explanation for any reasons you may not seem qualified, etc. If the landlord makes a connection with you, s/he may offer you the apartment over someone with an equally qualified application. You can even include a small picture of yourself. This will help jot the landlord’s memory when reviewing the application to match the friendly face s/he met at the showing with the application.

Some things not to do: don’t obviously bribe the landlord with muffins, gifts, or offers of paying 6 months in advance. A professional management company is not allowed to accept gifts or any payments outside of the standard rent schedule, and a small landlord might get offended.

Leave your apartment winning tips in the comments!

Welcome!

Congrats! You're done (or almost done) with school! College/university, in this case. Now what?

Chances are, your formal education did not prepare you for the real world. Paying rent, school loans, and bills, and still having money leftover for going out. Preparing your tax return. Building credit. These are things that all well-functioning adults must be in control of in order to save for financial goals, build wealth, and ultimately live the life that they want to live. 

I have been lucky (and smart and hard-working, my friends would say) in order to get where I am today. I am a CPA, own property, travel, and enjoy my life. I am not an investment banker, nor did I suddenly cash out with an inheritance or lottery winnings. I have a stable job, and I am practical with my money.

My friends and I are all in our 20s. While I have been in the working world for seven years now, many of my friends are just finishing their formal educations and starting their careers. Some of them live with their parents. Many are still taking out school loans for their living expenses. 

My friends often come to me with advise for the very basic of things. How do I prepare a tax return? (My dad's been doing it for me...) How do I get credit? (I have none...) What's a 1099? (Shit, do I owe money???)

This is your after school special. Controlling your money means you have to understand how money can work for you, as well as what the IRS requires. Building wealth means building positive money habits. It also means breaking those seemingly harmless habits that add up to big expenses. Ultimately, you have to educate yourself to reach those financial goals. I hope with my practical advise in layman's terms, I can help you reach financial security.

If you have any questions or topic suggestions, please leave a note in the comments.

Thanks!

K

Please note disclosure: this blog and the posts within are my own practical opinions and experiences. They are in no way legal or financial advise and may not apply to your individual situation. If you need legal or tax advise on your specific situation, please consult a local professional who is familiar with the laws in your state.

IRS CIRCULAR 230 DISCLOSURE:

Pursuant to requirements imposed by the Internal Revenue Service, any tax advice contained in this communication is not intended to be used, and cannot be used, for purposes of avoiding penalties imposed under the United States Internal Revenue Code or promoting, marketing or recommending to another person any tax-related matter.