Here’s some news to be aware of if you are a renter or a potential renter. The apartment leasing industry is increasingly using a new metric for approving leases: rental history. It's becoming a key criterion for approving new leases, and it is judged by many landlords to be a very reliable measure.
Typically, landlords have gauged potential renters by their credit reports. If they indicate responsible spending alongside other positive qualifications, then offering a lease should be a reasonable bet.
Now, checking ifresidents have historically paid their full rent on time is more commonly used to tell if renters will continue to pay on time in the future. While overall credit is important, your landlord cares far more about you paying your rent than, say, paying off your credit card.
The addition of rental history data has come about as new technology makes renting history easier for landlords to access. With rental history added as a part of credit considerations, it can help support an individual’s overall picture as a reliable spender.
This suggests that even if renters have experienced credit difficulties, they may be eligible to rent IF they've proven they can pay rent on time. For renters in this situation, this should be heartening news.
So, how can you check your rental history? Check in with the same reporting agencies a potential landlord might, like Experian. Also consider contacting your former landlords, asking them to share with you the official history they have on file for your tenancy. Keep in mind you'll need to know the addresses where you have lived to best verify your rental history information.
If you've missed rent payments, paid late, or abandoned a lease early, you won't be seen as a great candidate by apartment community managers. You can address the situation, however, and make a case for your tenancy.
For first-time renters, you will have different hoops to maneuver to help convince a landlord to rent to you. Keep in mind that credit history is still considered a major part of the mix when considering lease authorization.
If you are a renter, good renting behavior is not only your financial and legal responsibility, then; it may also keep your renting options alive in the future. When the time comes to renew or find a new apartment, you won’t regret building a reputation as a reliable resident and renter.
Photo credit: Shutterstock / jcjphotography
Do you have an idea for a topic you’d like to learn more about?