A denied rental application can feel disheartening, but understanding the reasons behind the decision and knowing your options can help you move forward effectively. Here’s a step-by-step guide to address the situation and improve your chances of success in the future.
Step 1: Understand Why Your Application Was Denied
Federal law requires landlords to provide a reason if your application was denied due to information in a consumer credit report. Here are common reasons for denials:
- Credit Issues: Low credit scores, missed payments, or high debt.
- Income Requirements: Insufficient income to meet the property’s rent-to-income ratio.
- Background Check: Criminal history or previous evictions.
- Rental History: Negative references from past landlords.
- Incomplete Application: Missing documents or inaccurate information.
For example, in cities like San Francisco, California, where rental competition is fierce, landlords may set higher credit and income standards than in smaller markets.
Step 2: Request an Adverse Action Notice
If your application was denied due to your credit or background check, the landlord is required to send you an Adverse Action Notice under the Fair Credit Reporting Act (FCRA). This notice will include:
- The reason for the denial
- The name and contact information of the reporting agency
- Your right to request a free copy of the report within 60 days
Step 3: Review and Address the Issues
Once you understand why your application was denied, take steps to resolve the problem:
- Credit Repair: Obtain a copy of your credit report and dispute any errors. Work on improving your credit by paying off debts and avoiding new credit inquiries.
- Income Solutions: If income was the issue, consider applying for units within your budget or offering additional security, like a co-signer.
- Background Concerns: If a background check flagged an issue, provide context or documentation to explain the situation.
For example, a tenant in Denver, Colorado, who faced rejection due to an eviction years ago could include evidence of stable rental history since the incident.
Step 4: Ask for Feedback and Reapply
Reach out to the landlord or property manager to request feedback. Inquire if there’s anything you can do to address their concerns and reapply. Some landlords may allow applicants to:
- Provide additional documentation, like proof of savings.
- Offer a larger security deposit or prepay rent.
- Submit a letter of recommendation from a previous landlord.
Step 5: Explore Other Options
If reapplying isn’t an option, consider these alternatives:
- Look for No-Credit-Check Apartments: Some properties in cities like Austin, Texas, cater to tenants with credit challenges.
- Work with a Broker: Rental brokers can help you find properties suited to your situation.
- Sublet or Roommate Arrangements: Sharing a lease with a roommate may be easier than qualifying alone.
Step 6: Know Your Rights
Understanding your rights can protect you from unfair treatment:
- Fair Housing Laws: Landlords cannot deny your application based on race, color, religion, national origin, sex, familial status, or disability.
- Local Protections: Some areas, like New York City, have additional tenant protections that cover source of income or criminal history.
Final Thoughts
A denied rental application isn’t the end of your housing search. By addressing the reasons for denial and exploring new opportunities, you can improve your chances of securing a rental. Whether you’re searching in Chicago, Illinois, or Orlando, Florida, staying proactive and informed will help you succeed.