So after finding the perfect apartment, you have decided to rent it. You have talked to the landlord and kept all the necessary documents for the rental agreement at hand. However, filling out the application form may not be as simple as you first thought. There would be several details you have to fill out. And you may not be comfortable sharing all of them. You might wonder if they truly are necessary. More importantly, is it legal to ask for these details on your application form? You are right to be concerned. You should consider all the details before giving any information.

 

Can A Potential Landlord Ask About Your Debts?

 

Yes, a landlord is fully within their legal rights if they ask you about your debts. It is necessary for them to ascertain whether you are the right candidate or not. Also, it will help them form the details of a free lease agreement or decide whether or not to have one. However, you are also free not to share the details of your debts or credit score. But, this may negatively impact the possibilities of your getting approved.

 

Thus, your landlord can check your credit score. In addition to this, they can also check your rent to income ratio. This is to verify that you really can afford the apartment. Generally, 30% is a good ratio to maintain. However, the final decision to offer you a rental agreement or not would depend on your potential landlord.

 

Why Do Landlords Do A Credit Check?

If your potential landlord has asked you to fill out a free rental application, it may include a section where your owner can get access to check your credit reports. Your credit documents reveal your credit score and financial records. Owners would examine your credit to analyze your ability to pay rent on time.

 

A good way to do this is by understanding the debt load you have. To examine this, they may look at the ratio between your income and debt. It is calculated based on your monthly debt and your total income. The potential landlords may be wary if this is greater than 50%. This is because it shows that you have probably taken more than you can repay. A potential landlord who wants a rental property mortgage is likely to be very picky about this ratio.

 

Also, the landlord can check whether you owe rent to any earlier owners. Such information is very vital for them. This is because they are looking to know if you would pay the rent on time. Otherwise, it can have a huge impact on their finances. This is because rent is a huge source of income for your landlords.

 

Before letting you sign the rental agreement, the potential landlord may also look for:

 

  • Credit score

Owners are legally supposed to do a credit check on you. Credit scores and reports are just a part of analyzing your potential to handle rent payments and check your livelihood.

  • Delayed payments

As an occupant, you have to pay your rent on time. According to your potential landlord, your chances of paying the rent on time depends on your other timely payments. It is vital to have a good payment history in your credit records. Eventually, your record exhibits a holistic view of your financial history. In addition to this, consistency is a vital part of paying your debts. Owners look for any gaps in loan payments. They would not want someone who makes payments one month and cannot do so the next month.

  • Other Details

It includes credit card history, bankruptcies and collection accounts. This will show your financial responsibility.

 

Many potential landlords commonly check all these details. However, you should carefully go through the rental agreement before renting an apartment. It ensures that you understand both what is expected from you and what you will receive.

 

What Other Details Do They Ask For?

In addition to the details of your income, your landlord may also ask for details such as proof of identity. They may also ask about the details of your pets if you own any. Some potential landlords may not want to accommodate pets.