_ _ __ __ _ _____ _ _ _
/ \ ___| | __ | \/ | ___| |_ __ _| ___(_) | |_ ___ _ __
/ _ \ / __| |/ / | |\/| |/ _ \ __/ _` | |_ | | | __/ _ \ '__|
/ ___ \\__ \ < | | | | __/ || (_| | _| | | | || __/ |
/_/ \_\___/_|\_\ |_| |_|\___|\__\__,_|_| |_|_|\__\___|_|
querying the hive mind
when do they usually do a credit check for rentals?
[Massachusetts, USA]: at what stage in the rental application process is typical for property management companies to do a credit check? What if there's a waitlist?
I have been in the process of applying for a below-market rate unit in a newish building in my town (which has to set aside a certain number for people with below-median incomes). I make 3x the adjusted/below market rate (but still rather pricey) rent. I've been getting unclear information about whether any below-market rate units are actually still available or if there is a wait list and was told that I just needed to submit an application (which is the same as the market-rate application.) I was surprised to see that they have already done a hard pull on my credit report despite not answering my questions about whether units were available or if it was a waitlist situation.
Is this typical these days? I would have expected that if I were on a waitlist they would pull my credit report when my name is close to the top and they are ready to rent to me, not when I am put on the waitlist, but I have not rented from a property management company in a very long time.
posted by needs more cowbell on May 06, 2024 at 4:40 AM
---------------------------
In Chicago in general they pull closer to the actual rental and less from waitlists. However, the waitlists for affordable housing here can be very very long like over years. So pulling at application doesn't actually make much sense in those situations.
posted by AlexiaSky at 5:19 AM
---------------------------
Back when I was renting whenever I'd need a new place I would print out my last 3 check stubs, print out a recent credit report, print out a reference list with my last several years of addresses and landlord contact info, and stick all of this into a folder. If I toured someplace I liked I handed the folder over right there. It skipped me through the application process every time.
Edit to clarify: it never mattered to me what the "typical" process was because I did all the work for them up front and gave them everything they'd want.
posted by phunniemee at 5:27 AM
---------------------------
I can't speak to the specifics of below-market units or property management companies, but I live in an area with very high housing demand and very high housing prices. It's very common for applicants to come to viewings with the kind of information listed above by phunniemee, prepared to hand them over if they're even slightly interested in the unit. I don't know the specifics of the law surrounding applications like yours, but it may be that the management company did the credit pull immediately as a way to know who is worth their time (able to pay) or not.
posted by pleasant_confusion at 8:08 AM
---------------------------
I will again redirect people to my question, which is when in the process credit checks are typically done, and not "please give me advice or facts you know about housing applications." I'm not sure why my initial comment requesting this was deleted.
posted by needs more cowbell at 12:10 PM
---------------------------
Judging from my children's recent experiences, it is very common that the rental company runs both the credit and background checks as soon as they apply.
posted by mygothlaundry at 2:09 PM
---------------------------
Is there a specific program governing these units (akin to say Mitchell-Lama in NYC)? Or just a vague promise from the developer that X% of units will be means tested?
posted by hoyland at 6:36 PM
---------------------------
If credit history is being used as part of the criteria to determine eligibility, that's why it is being collected early. In Berkeley, CA, for example, in the case of "first occupancy", proof of eligibility must be sent to the city by landlords for approval by the city before a unit is rented. While those documents may not require a credit check of proof of income eligibility, credit checks may be used to determine other aspects of eligibility to rent. In Berkeley these determinations are made by the owner of the building.
I would guess this needs to happen before anyone is put on a waitlist as well, because they don't want to mess around contacting people who turn out not to be eligible (and if I were the renter I'd want to know right away if I was not eligible for the unit). But YMMV in your particular city. Personally if I were the landlord I would want to know right away if a prospective renter is eligible for a unit before waitlisting them, especially if these units are in high demand. They may be complying with the law in your municipality, or just trying to save everyone from the headache of continuing the process in spite of not actually being eligible.
As far as the lack of communication to you, I have no answers. That would bother me too.
posted by oneirodynia at 1:21 PM
---------------------------