There are four things that apartments are evaluating on any rental application:
1) Employment and Income
2) Credit History
3) Rental History
4) Criminal Background
So that I can give you a thorough explanation, I’m going to take each of these in a separate blog post. This post is about the process Austin apartments use to verify employment and income. The other topics are linked above.
When it comes to verifying employment and income, not all apartments follow the same process, but there are some staples. Almost all rentals, whether you are looking for an apartment, town home, duplex or even single family home, will require you to verify that you make enough money to afford rent. Most will call or ask for a letter from your employer to verify:
a) Income Range
b) Length of Employment
While most do, a few employers are not verify income, only length of employment. In these cases you will most likely be required to provide a pay stub, or maybe even multiple pay stubs.
Apartment and rental landlords are usually looking for 3 times monthly rent in gross income (before your expenses). Some affordable housing apartment properties will accept 2 times monthly rent and a few more stringent communities will require 4 times monthly rent.
So what do you do if you do not have income? Maybe you are retired? Or you are a student? Don’t worry, there are other ways to verify that you have the ability to pay your rent. Retirees can usually show a bank account balance sufficient to cover the lease term at the required percentage (2x, 3x, 4x). If you are self-employed, and therefore do not have an “employer” to verify your income, often they will allow you to produce your most recent tax returns to verify income. Students can almost always be verified by a cosigner, additional deposit or bank account balance from student loans.
If you have specific questions about qualifying for an apartment, call us. We’ve been down this road many times and can help you determine which apartments you will likely qualify for and even suggest some places you might not have considered. Our services are always free to our clients.