What Makes Property Managers Say ‘no’ to Rental Applications?

Whether you are a first-time renter, or a seasoned tenant, finding the perfect rental property can often be a challenging endeavour.

As the demand for rental properties continues to rise, prospective tenants will often find themselves navigating through a maze of options, requirements, and application processes.  

Unfortunately, there will be times when a property manager says “no” to your application form - no matter how perfectly suited it was for you.  

Understanding the reasons why you may not be approved for a property is important, and there are a few key reasons why a property manager will say “no” to your application.  

Reasons For Not Approving a Rental Application  

Property managers may say 'no' to rental applications for various reasons. While specific criteria can vary depending on the property manager, landlord request, or management company, here are some common reasons why rental applications may be denied: 

Insufficient Income: Property managers often have income requirements to ensure tenants can afford the rent. If an applicant's income is below the specified threshold, their application may be rejected. 

Negative Rental History: Previous issues with landlords, such as evictions, non-payment of rent, or property damage, can lead to a denial of a rental application. 

Criminal History: Some property managers may conduct background checks and deny applications based on criminal history, especially if it involves violent crimes or offences that could pose a threat to the safety of nearby residents. 

Incomplete or Inaccurate Information: If an application is missing required information or contains inaccuracies, property managers may reject it. This includes missing documentation, false employment or income information, or discrepancies in rental history. 

Too Many Occupants: Property managers may have occupancy limits based on local regulations or the size of the rental property. If the number of proposed occupants exceeds these limits, the application may be denied. 

Pet Policies: If a rental property has a strict no-pet policy, or if the applicant's pet doesn't meet the property's pet criteria, the application may be denied. 

Unfavourable References: Negative references from previous landlords or employers can impact an applicant's chances of approval. 

On top of these reasons, it may simply be that it is a numbers game. There may be four or five applicants which fit the criteria the property manager or owner are looking for, but only one applicant can be approved.  

It is important to note that property managers must adhere to fair housing laws, which prohibit discrimination based on race, colour, religion, sex, disability, familial status, or national origin. Violating these laws can result in legal consequences, so property managers must ensure their decisions are not discriminatory. 

It's essential for property managers to be consistent and fair in their screening process to avoid legal issues and provide a transparent and unbiased rental application process. Keep in mind that the specific criteria and reasons for denial may vary, so applicants should inquire about the property manager's policies. 

It is also important to remember that while you may not be approved for a rental property through one agency, another may have different criteria they look at.   

How to Make Your Rental Application Stand Out  

With so many people applying for rental properties, having your application stand out can increase your chances of securing the rental property you desire.  

These are our top recommendations for making a strong impression:  

Prepare a Complete Application 

Fill out the application form thoroughly and accurately. Provide all required information, and don't leave any sections blank. Include all necessary documentation such as proof of income, employment verification, and rental history. 

Include a Cover Letter 

Write a brief cover letter introducing yourself and explaining why you're a great fit for the property. Highlight your stability as a tenant, emphasising your job stability, reliability, and responsible nature. 

Provide References 

Include references from previous landlords, employers, or colleagues to vouch for your character, responsibility, and reliability. Make sure your references are easily reachable and willing to speak positively about you. 

Offer a Higher Security Deposit 

If possible, offer a higher security deposit than the required amount. This can give the landlord additional security and might make your application more attractive. 

Show Financial Stability 

Provide proof of a steady income, such as recent pay stubs, a letter of employment, or tax returns.   

Explain Special Circumstances 

If you have any unique circumstances that may affect your application (e.g., a recent job change, temporary income drop), address them in your cover letter. Offer explanations and potential solutions. 

Create a Renter's Resume 

Summarise your rental history, employment history, and any other relevant information in a well-organised renter's resume. This can make it easier for the landlord to quickly understand why you should be their preferred tenant. 

Demonstrate Good Communication 

Be prompt and professional in your communication with the landlord or property manager. Respond to inquiries quickly and professionally. 

Meet in Person 

If possible, schedule a meeting with the landlord or property manager to discuss your application. This can help you establish a personal connection and demonstrate your genuine interest in the property. 

Be Flexible 

Show flexibility with move-in dates and lease terms. If you're willing to accommodate the landlord's preferences, it may increase your chances of being chosen. 

Remember to always be honest in your application, as providing false information could lead to legal consequences and termination of the lease. Making a good impression with professionalism, reliability, and clear communication is key. 

What are Property Managers Looking for in a Tenant? 

Property managers look for several key qualities in a tenant to ensure they choose responsible, reliable individuals who are likely to take good care of the rental property. 

At Thought Leaders, there are some common factors that our property managers consider when looking at applications from potential tenants.  

Stable Income and Employment 

Property managers want tenants who can reliably pay rent. A steady income and secure employment history are essential. Providing proof of income, such as pay slips or employment verification, can strengthen your application. If you are self-employed, providing a letter from your accountant stating your income can be a good option. 

Positive Rental History 

A good rental history is crucial. Property managers often contact previous landlords or property managers to inquire about your past behaviour as a tenant. They want tenants who have a record of paying rent on time, maintaining the property, and being respectful neighbours. 

Responsible Behaviour 

Property managers want tenants who will take care of the property and follow the rules outlined in the lease agreement. This includes proper maintenance, adherence to community guidelines, and respectful interactions with neighbours. Our property managers will be looking at this behaviour right from the beginning, so it is a good idea to follow all directions and be polite and friendly.  

Communication Skills 

Clear and prompt communication is essential. Property managers appreciate tenants who respond to inquiries quickly, provide necessary information, and communicate effectively about any issues or concerns. 

References 

Positive references from previous landlords, property managers and employers carry significant weight. Having references who can vouch for your character, reliability, and responsibility can enhance your application. 

Pet Ownership 

If you have pets, property managers will consider your ability to responsibly care for them. Providing information about your pets, such as their size, breed, and any training they have undergone, can help alleviate concerns. You may even want to provide a pet reference with your application.  

Respect for Property 

Property managers seek tenants who will treat the rental unit with care and respect. Demonstrating your commitment to maintaining the property in good condition can make a positive impression. 

Financial Responsibility 

Aside from a stable income, property managers may look for tenants with a reasonable debt-to-income ratio. This helps ensure that tenants can comfortably afford the rent without financial strain. 

It's important to be transparent and honest in your rental application. If you have any potential issues, such as a lower income or a past eviction, consider addressing them proactively and explaining any improvements or changes in your situation. This can demonstrate responsibility and may improve your chances of being selected as a tenant. 

How Can You Build Good Rental References? 

Building strong rental references is essential for prospective tenants, as it enhances your credibility and increases the likelihood of securing the rental property you desire. One of the best ways to build strong rental references is to maintain a positive relationship with your current property manager or landlord through paying rent on time, communicating openly about issues within the property, and following the lease term agreements.  

Ask your current or previous landlords to provide written reference letters that highlight your reliability, responsibility, and positive rental history. They should include information such as the duration of your tenancy, your payment history, and your overall conduct as a tenant. 

If you're a first-time renter or lack rental references, consider offering professional references, such as employer contacts or colleagues, who can vouch for your character and reliability. 

It is important to provide accurate information on your rental application. Be upfront about any issues in your rental history, such as late payments, and explain any mitigating circumstances. 

In addition, a positive relationship with neighbours can serve as an informal reference. If a landlord or agent gets positive feedback about you from the neighbours, it can enhance your application. 

Demonstrate flexibility during the application and rental process, such as being open to reasonable lease terms or scheduling property viewings at the landlord's convenience can give the impression that you are an easy tenant to work with.  

By taking proactive steps and maintaining a responsible and respectful approach to renting, you can build solid rental references that will boost your chances of securing your desired rental property.                                          

Are you looking to rent a property in the Perth area? At Thought Leaders Real Estate, we manage a range of property styles, from units through to houses, and may have just what you’re looking for. Take a look at our current available properties .