You found a great apartment, submitted your application, and it was denied. Well, now what?
Let’s explore some of the reasons your application might have been denied, what your next steps might be, and some things to know before filling out your next rental application.
Reasons Why an Application Might be Denied
There are many reasons why a rental application might be denied. Leasing agents and property owners usually have predetermined qualifications that potential tenants must meet in order to be approved. Before filling out a rental application, be sure to ask the landlord about their required qualifications. Here are some common reasons rental applications are denied:
- Inadequate or incorrect income
- Credit history
- Something in the background check
- References
- Pet owner or smoker for pet-free or smoke-free rental
- Inaccurate or incomplete information on the rental application
- Rental is no longer available
Let's take a closer look at each of these reasons.
Your gross income was inadequate or incorrect
The general rule of thumb for how much you should be paying for rent is 30 percent of your gross income. If you applied to an apartment where the rent was more than 30 percent of your gross income, the apartment community could deny you. For a quick calculation of how much rent you can afford, head over to our handy rent calculator tool. (If you are wondering what gross income means, that’s the amount you earn before taxes and deductions.)
If you are applying with a roommate or roommates, keep in mind that the apartment community or landlord may look at the income of all applicants separately, so each of you would need to make enough to afford the apartment on your own. This is to make sure that if one person moves out, the remaining tenant or tenants would be able to pay the rent. Not all apartment communities or landlords do this, however, so ask what the policy is for the apartment community or rental you are interested in.
If the income listed on your rental application doesn’t match verification sources (for example, your pay stubs or recent W-2 form), that could cause your application to be denied. If you haven’t been at your place of employment for very long, this could also be the reason behind a denied rental application. The length of time required (if any) will vary by property owner and apartment community, so be sure to check if they have an employment requirement before applying.
You have a rocky credit history or no credit history
While your credit score is important, there are a variety of things a property owner might be looking for on your credit report. For example, they might check to see if you consistently pay your bills on time, how much debt you have in comparison to your income, and your overall credit score. Typically, an apartment community looks for credit scores above 600. Keep in mind that many apartment communities look at all your debt, not just credit card debt. Other debt may include any loans, mortgages, and utilities.
If you have bad credit or no credit, it may be more difficult to get approved for an apartment, but it isn’t impossible. Ask the property manager or landlord if you can pay a higher security deposit, get letters of recommendation, or ask someone to cosign for you.
There was something in your background check
In addition to a credit check, landlords and property managers may run a background check. This shows things like criminal history and rental history. Property managers and landlords often look to see if you have several years of unbroken rental history — that is, consecutive years where you’ve continuously rented. If there are gaps in your rental history, they might want to know why. They are also looking to see if you have outstanding balances at other apartment communities and if you have any evictions in your history.
If you have never rented before, this could cause your application to be denied or conditionally accepted (accepted if you agree to certain terms, such as getting a cosigner). If you have a criminal background, this could also impact the decision. Since apartment managers and landlords don’t know you personally, they can only decide whether to approve your application based on your past behavior. If you think your past could cause you to be denied, try asking coworkers, your employer, or others who know you to provide you with character references.
You lack references or have poor references
Your references will let the landlord know if you would be a reliable tenant. Not providing any references, or having someone give you a poor reference, could cause the apartment manager or landlord to deny your application.
You have a pet or are a smoker
If the apartment community or rental has a “no pets” policy and you have a pet, your application can be denied. If the rental is smoke-free and you are a smoker, this could also lead to a denial. Make sure you are searching for pet-friendly rentals or rentals that allow smoking.
There’s incorrect/incomplete information on the rental application
When filling out a rental application, be sure to provide accurate information and fill out the form to the best of your ability. Incomplete, inaccurate, or missing information could cause your application to be rejected. If you are applying online, be sure to review the application before clicking “submit.” Make sure all required information is included.
The rental is no longer available
If you are trying to rent a place in a hot rental market, it’s possible that someone else got the apartment before you did. If there are several applicants, the landlord or property manager will have to choose one and deny the rest, even if they are all qualified applicants.
Laws About Rental Applications
Apartment communities and landlords must follow federal fair housing laws (FHA). This means that the guidelines for accepting an applicant must be the same for every applicant. They can’t deny an applicant based on race, color, national origin, religion, sex, familial status, or disability. These are federal laws, which mean they apply in every state. HUD, as well as some state and local laws, work to protect against discrimination based on gender identity and sexual orientation, as well. Your state may have additional laws concerning rental applications.
If you filled out a rental application through Apartments.com, these leases are reviewed by lawyers in each state so you can trust them to follow all state and federal laws.
Can I appeal a denial?
Yes, you can appeal the denial, but if the property manager or landlord had set criteria for acceptance and you didn’t meet that criteria, it’s probably best to move on. However, if you strongly believe you can make a case for approval, then it doesn’t hurt to try.
If you think providing the apartment manager or landlord more details could convince them to accept you, then try writing a letter to appeal the rejection. They don’t have to reconsider, but if you have good reasons for appealing, they might be willing to take another look at your application.
If you decide to appeal, first make sure your reasons are valid. Perhaps you forgot to include some pertinent information on the application that could make a difference, or you didn’t include enough references. Perhaps this will be your first apartment, so you don’t have a rental history. If you email or write a letter, keep it clear, concise, and professional. Don’t complain or criticize the landlord’s decision. Simply state your case and ask them if they would be willing to reconsider. It might help to offer to pay a higher security deposit, provide additional references, or make some other concession.
If the apartment community is federally funded (for example, you were denied Section 8 housing), the denial letter should detail the appeal process and the deadline for submitting your appeal. If the reason for your appeal is considered valid, you’ll be granted a hearing to discuss the matter further.
What to do if Your Roommate's Application is Denied
Perhaps you meet all the criteria and you are shocked when you are denied. If you applied with a roommate, it’s possible that your roommate didn’t meet the criteria. If this is the case, the entire apartment application may be denied. Check with the apartment community or landlord. They may let you reapply on your own, as head of household, or with a different roommate. Or perhaps your roommate could get a cosigner. Find out how and when you can submit a new application.
Steps to Take Before Applying For a Rental
Before you apply to another apartment, make sure you know your current credit score. If there are issues you need to clear up, work on doing that before applying again. Make sure you are applying for apartments within your budget. If you need a cosigner, find someone who would be willing to do this for you before applying. If your roommate was the reason your application was denied, perhaps you’ll want to interview a new roommate. And if a lack of references was the problem, ask those who know you to write letters of recommendation.
If you applied for your apartment through Apartments.com and you were denied, you can apply for up to 10 properties with the same one-time application fee for up to 30 days. And since you’ve already entered your information, it will only take a few clicks to apply to several more participating rentals (the participating rentals will have a green “apply now” button on their listing). You can apply to more than one property at once, as well.
While no one likes getting denied, it happens for a wide variety of reasons. Perhaps that apartment just wasn’t “the one” and the right one is still out there waiting for you. Let’s go find it!
