General Approval Requirements
Approval Requirements differ depending on the landlord/management company and/or on the building. The following are general guidelines that apply in most instances:
If you think your credit report is bad, advise Hatuka Properties so they can prepare you for the application process. Landlords/management companies have different ways of dealing with credit problems.
Some landlords/management companies allow renters to use a guarantoror to have a company called Insurent.com or TheGuranator.com to act as thier guarantor.
Some may simply reject the application. An agent at Hatuka Properties will advise you in order to save you time, money and frustration.
- Renters will need to show am income of about 40x the monthly rent.
- Renters must show a secure and stable employment.
- Renters needs to have good credit history. A major component of the approval process is based on the credit report.
- What makes a credit report bad?
- A couple old late payments are usually ok.
- High revolving balances are not good.
- Past due payments that are outstanding are bad.
- Delinquencies and collections are very bad.
- A public record (a day in court) is bad
- A Landlord-Tenant record is very bad.
- A tax lean oustanding is very bad.
- A few years old bankrupcy is very bad.
- A recent furclosure is very bad.
- Renters must show a good rental history.
- Rental, credit and employment information is generally referenced and submitted in form of a letter.
- Renters need to have a social security number. If you do not have a social security number or are not applying for one you must have a guarantor co-signing your lease.
- Bank Statements: In most cases landlords/management companies require copies of a renters' 3 most recent bank statements from a checking, savings, stock account or any other financial institution.
- Renter should have backup detail sheets available upon request.
- Most rent application forms require listing bank account information.
- Letter of Employment: Renter should get a Letter of Employment on their company's letterhead & signed by the employer/Manager, with the following:
- Length of employment
- Annual income.
- In some cases an offer or an acceptance letter for a new position is not sufficient to show employment.
- Letter of Landlord Reference: Letter of reference from a previous landlord is one of the most important reference letters a renter can submit to a landlord/management company who is processing their application.
- Pay Stubs: copies of renters' 3 most recent pay stubs are usually required.
- Students need to have a guarantor co-sign their lease.
- Certain buildings won't accept students. This is legal in NY State and not challengeable in a court or law.
- Tax Returns: All landlords and management companies require potential renters to include a copy of their most recent Federal Tax Return (1040).
- Renters should have their tax return available
- Self-employed renters: if income comes from different sources, you will be required to submit tax returns and a letter from a CPA stating the nature of your business, as well as, projected future income.
- If renters do not meet the above mentioned criteria there are usually two possible solutions:
- Renters can get a co-signer or guarantor to co-sign the lease for you.
- Renters can use Insurent.com as a guarantor in some cases that the Managements/Landlord works with insurent.com
- Guarantor or co-signer: A guarantor or co-signer is a person who guarantees the entire rent for the entire lease term and lease renewals should a renter default on their rent payments. A guarantor can be anyone who agrees to sign on behalf of a renter and who is willing qualified to act as a guarantor.
- Qualifications of a guarantor or co-signer: documents required from a guarantor are similar to applicant(s):
- Application Form: Same form as the applicant fills out.
- Credit Report: A guarantor's credit report must be in good standing.
- Federal Tax Returns: A guarantor is required to submit federal tax return and a w2 as proof of income.
- Guarantor is requires to submit 3 recent pay stubs and a letter of employment unless he is self employed & in that case a CPA letter will suffice.
- Guarantor must show annual income of about 80x the monthly rent.
- A Guarantor is not required to be present at lease signing but can sign and noterize remotly.
- In some cases, landlords/management companies require a guarantor to reside in the tri- state area (New York, New Jersey or Connecticut).