Imagine you submit an application for the apartment of your dreams. But when the landlord gets back to you, they say that your application is “conditionally approved”. This begs the question: What does conditional approval mean for an apartment? In simple terms, conditional approval means that your application is nearly approved. You just need to meet certain requirements for it to be finalized and pushed through. Still a bit confusing? Continue reading to learn more about conditional approvals in rental applications.
Key Takeaways
- If your application is conditionally approved, it means that you are almost approved, but the landlord wants more assurance that you meet all the conditions first before they give you their final approval.
- Landlords must give their conditional approval based on objective screening criteria. They can’t use it as a pretext to discriminate against you based on federal, Texas, and your local protected characteristics (e.g., race, religion, disability, familial status, and others).
What Does Conditional Approval Mean for an Apartment?
As San Antonio property managers, we know how confusing it is for tenants across Texas to see their application marked as “conditionally approved.” So, what does it mean exactly?
Conditional approval means that the landlord or property manager is likely to accept and approve your application. However, you need to meet additional requirements or conditions for the final approval to proceed. Think of it as a conditional, tentative “yes”.
In other words, your application meets most of the qualifications they are looking for in a tenant. However, there is something on your record (typically about verifiable income, credit, or rental history) that they need to double-check to make completely sure if you meet the criteria. Now, you only need to provide that extra assurance so your landlord can turn that conditional “yes” into a firm and final nod.
Your Protections Under Fair Housing Laws
As a Texas tenant, it’s critical for you to understand your rights under the Federal Fair Housing Act, the Texas Fair Housing Act, and more. Landlords cannot discriminate against you based on your protected classes, including Race, Color, National Origin, Religion, Sex (including gender identity and sexual orientation), Familial Status, Disability, and other characteristics your locality might protect.
1. Discrimination and Objective Criteria
Your landlord must apply all their screening criteria, including their conditional approvals, equally and consistently to all applicants. They cannot be harder for you based on your protected characteristics. Also, they can’t use your conditional approval to charge you more or deny you based on your protected characteristics.
2. Disparate Impact
Even if a landlord has no intent to discriminate, a policy can still be illegal if it results in “disparate impact.” This means that if a seemingly neutral policy (like requiring a “perfect” credit score) disproportionately screens out people of a protected class and isn’t essential for the landlord’s business, it may be problematic.
3. Reasonable Accommodations and Modifications
If the landlord’s reason for your conditional approval is disability-related, the landlord must engage in an “interactive process” with you to see if you need a reasonable accommodation or reasonable modification.
To clarify, reasonable accommodations are changes landlords make to their rules, policies, or services. For example, it might involve letting someone have a service animal despite otherwise having a “no pets” policy. Meanwhile, a reasonable modification is a physical change the landlord allows that makes your home or to common areas accessible, like installing a ramp.
4. Texas Localities and State Limits
While the Federal and Texas Fair Housing Acts cover the seven main protected classes, many cities and counties in Texas have passed ordinances that add more protected classes. For example, these might include sexual orientation, gender identity, age, veteran status, or other categories. So, you should research your area’s Fair Housing laws to know your full range of protections.
That said, while many localities in Texas cover your ability to not be discriminated against because of certain types of income (like disability or child support), State law currently lets landlords legally refuse to rent to someone because they use a federal housing voucher, although there are some local protections for veterans using vouchers. So, you should keep that in mind, too.
5. Protection Against Retaliation
The federal Fair Housing law protects you from retaliation. If you assert your rights, ask for a reasonable accommodation, or file a complaint regarding a potentially discriminatory conditional approval, the landlord cannot legally threaten, coerce, or take adverse action against you (like denying your application) because you exercised these rights.
Common Reasons for Conditional Approval
You can be conditionally approved because of a wide range of criteria. That’s why they need you to provide more proof or meet certain conditions to minimize their potential risks. To give you a better idea of how conditional approval works, here’s a brief review of the most common reasons people get conditionally approved for an apartment application:
Verifiable Income Below Qualification Threshold
One of the primary concerns landlords and property managers have is tenants’ ability to comfortably afford the rent. If your income falls short of their established qualifications, they might feel you’re at risk of missing rent or paying late if an emergency pops up. The good thing? Being conditionally approved puts your foot halfway through the door. It lets you provide more proof that you can meet their threshold.
Relatively Low Credit Score
Another aspect of your application that landlords and property managers pay attention to is your credit performance. If your score is below their qualifications, that might make them pause.
That said, landlords and property managers recognize that a relatively low credit score is just one of many qualifications they’re looking for. So, the conditional approval gives you an opportunity to give some context to the seemingly low credit score or offer a financial guarantee.
Unstable Income
In relation to your ability to afford rent, landlords and property managers also want to make sure that you can consistently pay the rent. So, the tenant screening process also looks into whether you have a consistent or long-lasting source of income. If it looks like there might be gaps, the landlord might want additional documentation to make sure you can make the rent in the long-term.
Flags in Rental History
Other than your finances, your past record as a tenant also plays a role in determining whether you’re qualified or not. But what exactly does this do for conditionally approved applications? First, there’s the matter of first-time renters with limited or no rental history at all. Since landlords and property managers have little information to work with, they might ask for more context or details to gauge your qualifications better.
Aside from that, another common reason you might get conditionally approved is if you have some negative history in your rental background, like late payments, noise complaints, and the like. Then, the conditional approval gives you a chance to address these concerns.
What Conditions Are Usually Required?
Now that we’ve covered what the common reasons for being conditionally approved, let’s jump right into the conditions you must meet to boost your chances of securing that lease. Typically, your conditions might involve providing additional documents that back up your qualifications so that the landlord or property manager can have extra assurance.
When it comes to financial criteria, one of the simplest ways for you to show yours is to provide supplemental documents that prove you have consistent income. For example, you could provide recent pay stubs, employment verification letters, proof of freelance or contract income, Supplemental Security Income, pension income, child support, disability support, savings statements, and the like.
Also, depending on your qualifications, the landlord or property managers may require you to have a guarantor on the lease. That way, there’s someone else you can fall back on to cover your responsibilities if needed. Or, they may ask you for a higher security deposit or a rent pre-payment.
If the issue is a matter of limited or negative rental history, landlords and property managers typically ask for additional references or a simple explanation letter from you. Here, you can fill in the gaps of key information and details to help them better understand your situation.
What Tenants Should Do After Receiving Conditional Approval
Finally, the last thing you should when dealing with a conditional approval is the steps to take once your application is marked “conditionally approved”. To help you navigate this process, here’s a brief overview of what we tell renters to do after they receive a conditional approval:
- Per Texas law, you are entitled to a copy of the landlord’s written screening criteria. So, if they haven’t given you the criteria already (which they already should have!), ask for it.
- Also, ask the landlord or property manager for a clear explanation of why your application is conditionally approved. Clarify any questions you have about the conditions and verify your deadline to meet them. Request a list of documents you need to provide.
- Next, if your conditional approval was related to your background or credit check, the landlord must give you an Adverse Action Notice with the contact information of the consumer reporting agency they used. Then, you can contact the agency and dispute any inaccuracies you find.
- Go over your additional requirements and conditions and realistically evaluate whether you can meet them or not. If you’re not confident about meeting a specific condition (having a guarantor, providing a higher security deposit, etc.), communicate this immediately and discuss potential alternatives.
- If you feel the condition is discriminatory against any protected classes you belong to, contact a local fair housing organization for guidance. Remember, you’re legally protected against retaliation if you assert your rights.
- Clarify how conditions like a higher security deposit and rent pre-payment affect your move-in cost, lease terms, move-in date, and payment schedule. That way, you can allocate your resources according to the changes.
- Be aware of the Texas 7-Day Rule: If the landlord does not give you notice of acceptance (approval or conditional approval) on or before the seventh day after you submit a complete application, you are legally deemed rejected. Then, you may be entitled to a refund of your application deposit.
- Submit all of your required documents as soon as possible. Don’t wait until the last minute before you request the additional documentation you need. If you delay, you could risk your ability to be fully approved.
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.
How Bay Property Management Group Can Help
Although a conditional approval sounds intimidating, tenants should think of it more as a second chance to prove their case. Knowing the answer to, “what does conditional approval mean for an apartment” can help you navigate these situations and be ready to show landlords and property managers that you’re committed.
Dealing with a conditionally approved application? Instead of searching for property management services near me, rent with our team of expert property managers here at BMG. As a trusted property management company in Texas, we can level with you, so you know exactly where you stand. We can connect you with rentals in Texas, explain your application criteria and rights clearly, guide you through lease terms, and more. Interested? Look at our listings today!