Due to life’s different circumstances, let’s say you need to rent in a place far from your home. Everything’s ready, except for one thing.
You don’t have a rental history.
Is it possible to rent without any rental history? Absolutely! In this guide, we’re going to discuss the different ways to rent without any rental history and the different things to consider as a first-time renter.
What is Rental History?
Simply put, a rental history is a summary of your past experiences renting homes. It includes previous rent details such as how long you stayed, payment history, any delinquencies, and more serious issues like evictions. Landlords use this to understand prior rental behavior and decide whether you would be a risk to their property.
9 Ways to Get Approved With No Rental History
As your local property managers in Philadelphia, we know everything you need to start your rental journey, even without a rental history. We understand that finding a place to rent might feel tough especially if you don’t have any rental history. But don’t worry! There are ways to increase your chances of getting approved. As we mentioned above, people with no rental history can rent as long as you follow these tips we’ll give you so you can start your rental journey.
1. Increasing The Security Deposit
When renting, a security deposit refers to money a tenant gives the landlord at move in. Landlords then hold onto it for the duration of the lease term in case there are damages to the property or you don’t pay rent. When you move out and everything is in good shape, you usually get the deposit back. It’s sort of like insurance for both you and the landlord.
By offering to increase your security deposit, even by a small amount, you demonstrate to the landlord your willingness to take responsibility. This can actually increase your chances of being approved for the rental, especially if you lack a rental history.
2. Show Proof of Income
Not everyone has the capacity to increase the security deposit, especially when moving expenses can quickly add up. Because of this, showing proof of income to your landlord that demonstrates your ability to cover the monthly rent is crucial. Even without a rental history, proof that you have a stable job and reliable form of income is a huge plus that can help your approval odds.
Proof of income can include pay stubs from your job, bank statements, or tax returns if you’re a self-employed individual.
3. Provide Proof of Employment
If your reason for renting is to move closer to where you currently work, it can definitely substantiate proof of employment – which is essential for any rental application.
Proof of employment typically includes a letter from your employer that confirms your position, current salary, and how long you’ve been with the company. This can go a long way to show that you are a responsible and reliable person, even if you are a first-time renter.
4. Consider Renting with a Roommate
Practicality speaking, you can consider renting with a roommate. This can actually be a good solution to increase your chances of approval. When opt for a roommate, you both share the costs, from rent to utility bills. This actually allows landlords to feel a bit more secure that two people are paying instead of one, and it reduces risks for them too. In short, renting with a roommate makes the landlord worry less about not getting paid.
If your roommate has rented a place before, that’s even better. Landlords usually feel better about renting to people who’ve rented before, so if you don’t have any renting experience, and your roommate has, it can definitely help.
That said, before you agree to rent with someone, make sure you both get along in terms of how you live and how you’re paying all the bills to prevent problems from arising moving forward.
5. Collect References
Collecting references means gathering people who can testify for your character. Your references should be available to be interviewed by a landlord or a property management company about how trustworthy and responsible you are.
It is a best practice to get the names and contact info of your references to include with your initial application. That way, the landlord or property manager handling the screening process can easily reach out.
6. Get a Cosigner
Aside from collecting references, another tip we can give is to get a cosigner. A cosigner is usually a close friend or family member with a strong financial history. After all, they are agreeing to pay the rent if you can’t. Having a cosigner makes the landlord feel better about renting to you because they trust that the rent will be paid, even if you can’t do it yourself.
When you ask someone to be your cosigner, it’s important to talk openly with them about what it means. You should explain your renting situation and why you need their help. Make sure to give the landlord information about your cosigner’s finances and contact details, so they can check if they’re a good fit.
7. Get a Guarantor
While a co-signer is responsible for every payment you miss for example, a guarantor only assumes responsibility if you fall into total default (which you don’t want to happen.)
When deciding who your guarantor would be, make sure to choose someone who trusts you and has good financial standing. It could be a family member, a close friend, or someone who believes in you.
Be ready to give the landlord info about your guarantor, so the landlord can check if they’re a good fit.
8. Show Proof of Regular Payments
Aside from showing proof of employment, or proof of income, another tip we can share to rent with no rental history is to show proof of regular payments. One good way to do this is by showing that you consistently pay things like electricity, phone, or credit card bills on time. This demonstrates that you are responsible and diligent with your financial commitments.
If you’ve lived with roommates or sublet from someone before, you can ask them to write a letter or statement confirming that you paid your share of the rent and other bills on time.
9. Explain Your Situation
Lastly, aside from all the requirements we listed above, the best thing you can do is to explain your situation to the landlord. Having an honest talk with the landlord helps them see that you’re trustworthy and understand your situation better. It’s a chance to deal with any worries they might have and improve your chances of getting the place, even without a rental history.
Want to learn more? Check out this article that gives additional tips for first-time renters!
How Bay Property Management Group Can Help
With these tips, we hope you can secure the rental property of your dreams – even without any rental history!
If you’re a landlord, screening potential tenants is one of the most crucial tasks you have. It is also time consuming. When it comes to the stress of managing multiple rental properties, why not let the experts at Bay Property Management Group do all of the heavy lifting. Bay Property Management Group offers comprehensive rental management services in Philadelphia, from tenant screening to maintenance, rent collection, and more. Give us a call today to get started.
