Moving to a place of your own for the very first time? Taking that step towards independence can feel like such a huge leap. And it is! But did you know that renting an apartment for the first time can be quite a challenge? Since you have no rental history under your belt, some landlords may be hesitant to approve your application. So, what can you do?
In terms of how to get a rental with no rental history, there are many ways you can make it work, from showing proof of income to getting a guarantor to sign with you on the lease. With this in mind, here are tips for improving your chances of securing your first lease, even without a rental history.
Key Takeaways
- First-time renters can have difficulties securing a lease due to the lack of rental history, making it difficult for landlords to gauge their responsibility and reliability.
- Establishing financial capabilities through proof of income, a higher security deposit, or guarantors can strengthen your rental application.
- Professional character references and alternative housing experiences can be used to assess your qualifications.
How to Get a Rental with No Rental History in Texas
As a provider of property management rental homes, we can share ways we’ve seen renters get a rental with no rental history in Texas. Try these methods:
1. Show Proof of Income
A rental history is a document that landlords and property managers use to evaluate your qualifications as a tenant. It shows your past rental experiences and even your previous landlords’ contact information for reference. So, without this, landlords and property managers don’t have a way of knowing whether you’re a reliable, responsible, and capable renter.
Taking this into mind, one of the first things that you can do to prove your qualifications is to provide proof of income. Landlords and property managers are primarily concerned about whether you can afford the rent. In particular, they want to ensure that you can do so comfortably, meaning that you have room to pay it even if unexpected expenses come up.
As a general rule of thumb, your monthly income should be at least three times your rent. So, if you’re earning around $6,000 a month, it’s best to look for rental properties around the $2,000 rent price range to improve your chances.
In line with this, landlords and property managers like us also want to know if you can consistently pay rent for the duration of your lease. So, to prove you have consistent income, you can provide documents like your most recent pay stubs, bank statements, benefit statements, tax returns, or even a letter of employment.
2. Offer a Larger Security Deposit or Pay Rent in Advance
Another way to improve your chances of securing a lease is to offer a higher security deposit than what the landlord is asking for. Think of it as a way to offset the landlord’s perceived risk of accepting a tenant with no rental history. Not only that, but it can also show how serious and committed you are to renting their property.
Similarly, you can offer to pay the rent ahead of time, which flaunts your strong and steady financial qualifications. However, keep in mind that not all landlords or property managers allow these strategies due to legal or policy restrictions. But in case they do, offering these financial incentives can strengthen your application.
3. Use a Co-Signer or Guarantor
To ease your landlord or property manager’s concerns about your financial qualifications, you can have a co-signer or guarantor sign with you on the lease. But what are these exactly?
In the simplest terms, a co-signer is someone who assumes the responsibility of paying your rent if you ever can’t. Typically, a co-signer is a family member or close friend with significantly more established finances and a good credit score. Crucially, a co-signer signs the actual lease agreement and is considered a party to the lease, making them equally and fully responsible for all terms.
A guarantor does the same, but they sign a separate agreement (a Guaranty of Lease) and are not a tenant on the main lease. Basically, what a guarantor does is to be a safety net for landlords. They cover all your financial obligations indicated on the lease in case you default. So, other than rent, a guarantor also pays for property damages, late payment fees, and other penalties. In practice, for the landlord, both provide comprehensive financial coverage.
4. Provide Character References
The other risk of renting to a tenant without a rental history is that landlords and property managers don’t know your history of fulfilling your commitments. Meaning, they don’t know if you’re the type to forget rent due dates or the other way around.
So, one way that you can let them know more about you beyond what’s written on paper is to link them with character references. We’ve seen many tenants make the mistake of adding family members and friends to the list. Instead of that, we recommend professional contacts like your boss, coworkers, professors, advisors, or mentors. They can provide a more unbiased perspective on your qualifications, which will carry more weight in the landlord’s eyes.
5. Use Past Ownership or Dorm/Co-living History
Let’s say it’s your first time renting, but you were a homeowner before. Or, say you lived in a dorm, co-living space, or another similar living situation, you may be able to use that as an alternative to a traditional rental history. Doing so can do two things – one is that it can show your financial responsibility, and two, your capability to maintain a home and living space. Let me explain.
Homeownership shows your ability to financially follow through regular mortgage payments. Giving your landlord copies of your mortgage statements shows that you have a history of paying consistently and on time. It can also be proof that you’ve handled other home-related responsibilities, such as utilities, general upkeep, repairs, budgeting, and even taxes.
The same things could be said if you lived in a dorm or co-living situation of some sort. Generally, living in these spaces involves structured housing with strict rules. On top of that, there are certain responsibilities and expectations that residents need to meet throughout their stay. So, in essence, these options are another way to potentially prove your qualifications.
6. Look for Private Landlord Housing Options
Lastly, you can also look at rental opportunities with private landlords, which are typically smaller landlords (1 to 2 units) who can be more flexible in accepting applicants without a rental history. Primarily, private landlords are often more open to considering your overall situation since they are not limited or hindered by corporate policies and guidelines.
Know that private landlords still want to protect themselves, so it’s important that you’re ready to provide key documentation – proof of income, bank statements, character references, and the like. However, you can establish a more personal relationship with your landlord and show, in person, your level of professionalism, communication, and attitude towards renting their property.
That said, we’re only providing general information in this article for educational purposes only. While we aim for accuracy and reliability, the information shared is not meant to be relied on as legal, tax, financial, or specific regulatory advice. We strongly recommend that you always consult with a licensed attorney, CPA, or other qualified professional in your specific jurisdiction for advice tailored to your unique circumstances, as reading this blog does not establish a client or advisory relationship with BMG.
Find Your Dream Home with Bay Property Management Group
Renting for the very first time? Having no rental history to your name can become a bit of a challenge since some landlords may be hesitant to take a risk on you. However, providing key documents, like proof of income and a certificate of employment, can establish your financial capabilities. Offering a higher security deposit, advance rent payments, or signing with a guarantor can also appease landlord concerns.
Still nervous about your application? Experienced Austin property managers, like us from BMG, can help. We can offer you guidance as a first-time renter – giving you a list of important documents you need, reviewing your requirements with you, and even helping you match with rentals around Texas. Interested? Look at our listings today!