You’ve found your dream property! Now, you’re ready to move in and start decorating, but first, you have to go through the application process. A rental application is a document required by landlords that gives them more background about who you are as a renter. It typically reviews your rental history, credit history, and income. Income is important when landlords decide which tenants to accept, and many properties require tenants to make three times the monthly rent price to qualify.
Let’s say your dream unit is a little out of budget, but you’re willing to spend more for the space. Unfortunately, your landlord requires tenants to make three times the monthly rent amount, making the unit feel out of reach. Don’t worry- there are several ways you can still be approved!
What Does 3x the Rent Mean?
When applying for a property, some landlords require prospective tenants to make three times the monthly rent. For example, if the monthly rent for a unit is $1,000, the landlord would look for a tenant that makes $3,000 a month or more. This safeguard is in place to protect both the landlord and the renter, as it helps ensures a tenant can comfortably make monthly rent payments and avoid becoming financially stretched.
A general rule of thumb when deciding how much you should spend on rent is to spend no more than 30 percent of your monthly pre-tax income on rent. Landlords usually prefer tenants who fit this requirement because it can indicate financial stability, but you can still get approved for a unit without making three times the monthly rent. Let’s break down a few ways this is possible.
Ways to Get Approved Without Making 3x the Rent
Besides verifying whether you earn three times the monthly rent, landlords also review other parts of your rental application to determine whether you’re a strong candidate. If your income doesn’t reach that threshold, offering a larger security deposit, renting with roommates, applying with cosigners or guarantors, highlighting strong credit, or providing references can strengthen your application.
Offer a larger security deposit
Before moving into a new place, most properties require tenants to pay a security deposit. This deposit is usually refundable at the end of your lease and helps cover any damage to the unit after move-out. Landlords usually have a set deposit ranging anywhere from $100-$500, but the amount can increase depending on factors such as rental history or credit history.
If you don’t make three times the monthly rent, ask your landlord if they would consider a larger security deposit at move-in. This can help demonstrate that you’re financially prepared for monthly rent payments and other living expenses.
Rent with roommates
Renting with a roommate could help improve your approval chances if you don’t meet the monthly income requirements on your own. When renting with other people, a landlord will typically combine all applicants’ monthly incomes to determine whether the household meets the required income threshold.
Roommates can also lower your overall housing costs since rent and utilities are often divided between multiple people. If you’re looking for another way to strengthen your application while saving money, consider renting with a roommate.
Apply with a cosigner or guarantor
A guarantor is someone who chooses to take on the financial responsibility of a lease if the tenant misses a rental payment. A cosigner is someone who signs the lease alongside the tenant and may share financial responsibility for rent payments.
The biggest difference between a cosigner and a guarantor is that a cosigner is generally equally responsible for rent payments when they are due, while a guarantor only pays the rent if the tenant fails to do so.
Cosigners and guarantors are usually family members, significant others, or someone the tenant trusts. Applying with a cosigner or guarantor when you don’t make three times the rent can help improve your approval odds by giving landlords financial assurance.
Showcase a strong credit score
A credit check is usually completed after you apply for a property and is reviewed with a background check. Credit reports can include your credit score, payment history, debts, employment information, and public records.
Many landlords look for a credit score above 650, although requirements vary by property. If you consistently make payments on time and have a good credit history, landlords may view you as a financially responsible renter. A strong credit score can help offset lower monthly income and improve your chances of approval.
Include rental references
When filling out a rental application, there is often a section where you can choose to include references. Rental references can come from previous landlords, employers, or someone you trust who can speak to your reliability and responsibility.
If you list a previous landlord as a reference, they may share information about how you handled your last lease, including whether you paid rent on time and followed lease terms. Strong references can help reassure landlords that you’re a dependable tenant.
Show proof of employment, savings, and create a rental resume
If other options aren’t practical, there are still ways to show landlords that you can afford monthly rent payments. Providing proof of employment may help strengthen your application. Many landlords request pay stubs, offer letters, bank statements, or a letter from your employer during the application process. Stable employment and consistent income may improve your approval chances, even if you don’t meet the income requirement.
Some landlords may also consider your savings account balance when reviewing your application. If you have sufficient savings, this can prove financial stability despite a lower monthly income.
You can also create a rental resume to highlight your strengths as a renter. A rental resume is a document that includes your rental history, employment information, references, financial responsibility, and other details that help you stand out. Similar to a career resume, a rental resume gives landlords a clearer picture of who you are as a renter beyond just your income.
Calculate Your Rental Budget with ForRent’s Rent Calculator
Although it can feel like an uphill battle, there are ways to improve your chances of getting approved for an apartment without making three times the monthly rent. If you want to determine how much rent fits within your budget, use ForRent’s Rent Calculator.
Simply input your monthly income after taxes and how much you’re willing to spend on rent each month, and ForRent will help estimate a monthly rent budget. Renting is a big step to take financially, so it’s important to approach your apartment search with confidence.
