Introduction
Looking for a flat to rent? In pursuit of the apartment of your dreams, being fast is not enough. Landlords want to rent their real estate out only to those who would pay on time and not bring trouble, and your only tool to prove it is a rental verification form.
Between two potential tenants, one having this document and the other one — not, the landlord would definitely choose the first one. So, what is a rental verification letter, how can you draft it, and what benefits does it give you at the rental market?
Who Rents Flats in the U.S.?
There are more than 102 million renters in the United States, which makes up 34% of the country's population. These are people of different ages, genders, professions, and financial statuses. Let's try to draw the portraits of typical American renters and understand what makes them live in leased real estate.
1. Age
While the majority of baby boomers aimed at owning houses (and could afford them), younger generations are more likely to rent apartments. Just compare: among those younger than 35 years old, 35% are renting, but in the age group 85+, this figure is only 2.4%.
2. Family status
Despite a popular myth, the majority of renters are not singles unwilling to share space with their parents. The latest statistics show that non-married individuals make up only 38,1% of all renters in the U.S.
Partners, married couples, and families with children also rent housing. They usually search for at least two-bedroom flats, spare kitchens, and parking lots. Meanwhile, the dream flats of those living alone are more unpretentious: a tiny 1-bedroom apartment not far from their workplace or in an area with a comfortable commute.
3. Financial status
Most renters spend more than 30% of their income on their housing, and this figure rises every year. At the same time, 57% of them characterize themselves as poor and claim they could not afford their current apartments if their landlords decided to raise the price.
4. Ethnicity
According to a recent study published by Forbes, all renters in the United States are represented by such ethnic groups:
5. Location
Big city residents rent apartments more often than those living in small cities or villages. The main reason is that real estate prices are considerably lower in suburban areas, which means more people can afford to buy their housing.
Besides, those who stay in their native cities often live with their parents until they get married or inherit flats or houses from relatives. Finally, those who prefer the fast life of megalopolises often need to change their place of living depending on where their office is located, which isn’t very easy when you live in a flat you own.
How Can You Rent a Flat in the U.S.?
The American rental market is very challenging and unfriendly to potential tenants. The demand considerably exceeds the offer, especially when it comes to affordable housing. If you’re ready to pay $10.000 a month for a flat in the city center, it will take you minutes to find it, but if your budget is humbler, get ready for a stressful race in which the fastest, most communicative, and… petless win.
The reality is that, while renters choose apartments, landlords prefer the renters, and their dream tenant is commonly a single person who has a stable income and no children, pets, or loud friends who can break or spoil something in the apartment.
If you have any of them, searching for a dream nest will be harder but still possible. So, if you’re currently in search of a new cozy flat, get ready to follow these steps:
1. Define your expectations.
First and foremost, you should understand what flat you want to find. Ask yourself:
- How much am I ready to pay for a flat?
- Where should it be located?
- What kind of flat am I looking for?
- How many bedrooms should it have?
- Am I going to live alone or share the flat with someone?
- Am I looking for a pet-free apartment?
- How long will I live there?
- What are the essential utilities I need?
- How much time do I have to find the flat?
- If I cannot find what I want, what can I comply with?
Stay realistic, and don’t put up a firing range. Research the market and define the average price for the flats in your chosen location.
Miracles happen, and you can find a perfect apartment at a lower price, but if you expect to rent a penthouse at $2.000 per month, you are more likely to find yourself homeless at some moment.
2. Search for your dream flat.
Finding a flat to rent isn’t a quick matter. It’s better to start the search process two or even three months before the expected move-in date. To have options, use real estate applications and websites that present the complete database of all flats for rent available in your area.
The most popular rental resources in the U.S.:
- Zillow Rentals;
- Trulia Rentals;
- Apartment List;
- Apartments.com;
- HotPads.
During your search process, do not focus on one flat. You’ll be disappointed and lose precious time if something goes wrong and the deal falls through. Choose several flats that meet your expectations and pass to the next step.
3. Contact the landlord.
Call or email the landlords of the chosen flats and ask them questions about anything essential for you, such as appliances, rent duration, infrastructure near the flat, etc.
In such a way, you’ll understand which variant fits your expectations better and get the first impression of the landlord. If the person behaves strangely, is rude or disrespectful, it is better to search for another flat.
4. Schedule the viewing.
You can appoint viewings depending on how far your chosen flats are from each other. Check everything — how good the commute in the area is, how old the house is, the condition of the flat, appliances, devices, and furniture.
5. Provide the documents.
Before you sign the lease agreement and move in, the landlord will ask you to provide such documents that would verify your identity and payment capacity:
6. Sign the lease agreement.
The last step before you move into a new flat is signing the residential lease agreement — a document proving you have the right to live in the chosen apartment. It should contain:
- Apartment address;
- Personal information of the tenant and landlord;
- Tenant’s rights and responsibilities;
- Lease term;
- Conditions for termination;
- Payment details;
- Information about utilities;
- Insurance.
Mind that some states, namely California, New York, New Jersey, Maryland, and the District of Columbia, have rent control laws that regulate how often and at what sum the landlord can raise the rent price.
What Is a Rental Verification Form, and Why Do You Need It?
People are not always who they seem to be at first sight. To identify such cases before a suspicious individual moves into their real estate, landlords use a rental verification form. It is a document that allows them to learn about the previous rental history of a potential tenant and, consequently, identify possible issues.
Usually, the tenant screening process is conducted by the rental agency the landlord cooperates with and includes identity, paying capacity, and even criminal record checks. However, when more information is needed, landlords may ask their colleagues to share some information about the interaction with the tenant. The form usually contains questions about the tenant’s rent amount, payment schedule, cases of lease violations, etc.
As a result, the landlord may discover that the latter used to delay monthly payments, was noisy and disrupted neighbors, or secretly kept six cats and a dog in the rented apartment. The process of eviction may be lengthy and costly for the landlord. Therefore, prevention is better than cure.
How Can You Draft a Rental Verification Form?
Though a legal verification form is a legal document, it does not have a strict structure that would be universal in any case. However, commonly, the form should contain such essential elements:
The list of questions may vary depending on what exactly the new landlord wants to know about the tenant.
The easiest way to draft a rental verification form is to use a template available at Lawrina — a reliable legal tech platform that offers 200+ legal forms for any purpose.
To create a document, follow these steps:
- Access Lawrina Templates;
- Choose “rental verification form:”
- Click “Create & Download;”
- Click “Start Creating;”
- Answer the questions about the tenant;
- Review and edit the document if necessary;
- Sign the document with an electronic signature;
- Download the document.
After this, the new landlord or the agent can print the document or send it to the previous landlords via email. In the empty lines, they will write answers to the questions and send the form back to the addresser.
Does a Rental Verification Form Need To Be Notarized by a Lawyer?
A rental verification form is a document for the so-called internal use. It does not have much legal power but rather serves as a guarantee for the landlord that he would not get into trouble with a new tenant.
As a matter of fact, this form is rather a means of cooperation between landlords who want to identify and cancel dishonest or irresponsible tenants. Therefore, there is no need to notarize the form; the signatures of the landlords asking and answering the questions are enough.
Conclusion
“Trust but verify” is the golden rule of every business deal. So, if you want to rent a nice apartment, don’t be surprised if the new landlord asks you for the contact information of your previous rented flats’ owners.
The process of renting a flat is very similar to the process of getting a job. While the tenant is looking for a flat that would meet their expectations, the landlord needs to check whether this candidate is reliable enough. A rental verification form allows both of you to make this process smoother by simply asking the previous landlords to give their recommendations to the tenant and prove the latter is the person worth dealing with.
This article was written in cooperation with Lawrina