Renting an Apartment

When renting an apartment, your future landlord will want to assess the financial risk of renting their property to you. They will want proof that you can reliably pay rent and maintain the unit.

Income Requirement: When renting, there is a common “3× Rule” where most landlords require your gross monthly income to be at least three times your monthly rent. For example:

• If rent is $1,500 per month, you must show $4,500 in gross income per month, or $54,000 per year. Failing to meet this requirement may result in your application being denied unless you have a reliable co-signer.

Credit Check: Landlords review your credit report to look at your payment history. A credit score below 650 may lead to rejection or require a higher security deposit.

Security Deposit: A security deposit is typically equal to one month’s rent and held to protect against damage. Disputes about what to fix and how to cover expenses often arise when tenants move out. Before moving in, make sure to take pictures of the apartment to document its condition. Share these pictures with the landlord as proof of pre-existing damage.

Lease Term: A lease is a legally binding contract. If you sign a 12-month lease and leave early, you still owe the remaining rent. Make sure to always review the early termination clause of your contract.