Why Albany Lofts Does Credit Checks and What They Look For
Searching for the right Albany apartment can be a long process. So when you finally find the right one it can be nerve wracking when the property manager tells you a credit check will be run. Whether you are renting an apartment for the first time or are a seasoned renter looking for your next apartment, it is important to understand how your credit score plays a role in the leasing approval process.
The truth is, many businesses rely on a credit check to assess the risk of doing business with you. Albany Lofts is no exception. Like any rental business, Albany Loft Apartments uses credit checks for tenant screening purposes in order to determine whether you’re likely to pay your rent on time, late, or perhaps not even pay at all. Tenants who do not pay their rent on time or at all cost rental businesses lots of money-money which is often used for maintenance and upkeep on the buildings and living spaces.
What do Property Managers Look for In Your Credit?
When checking your credit, property managers will typically request what is called a tenant screening report from one of the major credit reporting agencies. These type of reports contain more information than a standard credit report in order to help property managers and landlords make informed decisions about new rental applications. If the Albany apartment you are looking to rent is in high demand, having a great credit report can definitely give you the edge over other applicants. However, in most cases a few small financial mistakes or late payments years ago will probably not affect your application much if you have a recent history of making your payments promptly. So what do we really look for in your credit check?
1. Negative History in Public Records
Events like previous evictions, foreclosures, judgements, and bankruptcies obviously raise a big red flag and can make renting a new apartment difficult. Collection accounts, repossessions, and charge-offs can also have a negative impact on your rental application. The only exception to this is if these issues are in the past and there is a good reason why they happened (i.e. illness or job loss).
2. Debt Problems
Credit reports showing a large amount of debt is a sign that you are overextended financially. Just like mortgage lenders, landlords will often calculate your debt-to-income ratio to determine if you can comfortably afford to pay for the new apartment. If your debt-to-income ratio is over 45% securing a new apartment or loft in Albany could be difficult.
3. Payment Habits
Landlords like to see that potential tenants have demonstrated good payment habits. If a credit check shows that a borrower has on-time payments with several accounts over a span of several years, a landlord can be reasonably assured that they will also be paid on time. If you have worked for the same employer for a long time, this is another good indication of financial stability.
4. Rental History
That is right, a tenant screening report will include information about any previous rental situations. If money is owed to a previous landlord, or you have a history of not paying on time, renting a loft apartment will prove difficult. On the flip side, a good rental history can definitely work in your favor.
Submitting an Application at Albany Lofts
The credit checks conducted at Albany Lofts at One Broadway are completely confidential and serve to ensure that new tenants are a good fit for our rental community. Our luxury loft Albany apartment complex strives to build a community of long-time tenants who love to call our facilities home. If you are interested in renting one of our spacious Albany Loft apartments, you can easily Apply Online.