Preparing to rent or lease your next home may seem simpler than buying a property, but there are still some important steps to keep in mind. There is a lot of preparation to consider. When the time comes to submit your application, chances are you’ll be well-considered if you are organized and prepared with your documents and up-front about your expectations and financial resources.
Luckily, Dwellworks Move is here to help. All our customers have access to “myDwellworks”, our destination information platform full of tips and guidance for both the logistical and the more adventurous parts of a move. We pulled the following information straight from the myDwellworks section about the renting and leasing process. We have shared these tips and instructions with thousands of new arrivals who became successful renters and we hope you'll find them helpful, too.
How Renting Works in the U.S.
In the U.S., as the party renting housing, you are the tenant. Tenants rent apartments, single-family, and condominium homes from the owner of the property, also called the landlord. Some landlords may employ a property manager or real estate agent to act on their behalf. Large apartment complexes may be managed by dedicated on-site staff who act for the landlord. In the US, in most but not all locations, the tenant does not pay a fee for finding housing, but that decision is subject to local custom and practice.
Documentation Checklist
Many rental markets in the US are very competitive – with a greater demand for housing than there is supply from landlords, developers, and other property owners. Preparing to present yourself as the best possible choice is critical in this competitive environment.
Documentation to prove your identity, employment status, and overall financial credibility is crucial to being selected by a landlord as their tenant. Read the checklist below for the documents most landlords will ask for. They may ask for some or all of this documentation.
- Government-issued photo ID (passport, driver’s license, identity card)
- Permanent work visa
- Recent pay stub
- Previous rental history
- Current copy of your US credit report*
- Funds equal to 2-3 months’ rent available in a local bank account
* Many new arrivals to the US will not have a credit report. Read on for other options.
Rental Application Know-How
Once you identify a property to rent, you’ll fill out a rental application. This will most likely include requests for the same information as above. If others occupying the rental unit will be paying a portion of the rent (i.e., roommates), the landlord will want the same financial information from them. Additionally, the application will include requests for information for all those living in the space, as well as pets. Landlords are not required to accommodate pets, with the exception of service animals. If you are moving with a pet, make sure to discuss your expectations in detail with your Dwellworks Consultant prior to your property search to ensure you are looking only at properties that accept pets and their requirements.
The landlord may use a third-party service to check your credit history. This is done using your Social Security Number (SSN). If you are new to the U.S. and don’t have an SSN yet, or your SSN is new, you won’t have an established credit history to review. In this case, you’ll submit any of the documentation listed above that you have. Your letter of employment (on your employer’s letterhead) is a very important document. In some instances, the landlord may require further assurance of ability to pay. This may take the form of an independent guarantor (another party who signs the lease) or, in rare instances, a request for the employer to act as security for the lease. For reference, the request for a guarantor is very common in New York City and we’ve attached additional detail here.
You may also be required to pay an application fee. This typically costs $50-$150, depending on the market and the property. The rental application takes 2-4 days to process on average. The landlord will contact you to let you know if and when your application is approved. In competitive markets, you’ll be asked to make a final renting decision quickly.
*Note that tenants in the U.S. are protected under The Fair Housing Act, which prohibits a landlord from discriminating against renters due to race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability.
Signing Your Lease
Once your application is approved and negotiations are complete, you will receive a rental agreement or lease. A lease is a legal document prepared by the landlord, establishing the rights and responsibilities of both the landlord and the tenant. Both parties sign it. Each U.S. state and some local jurisdictions have required lease language and clauses that must be included for the document to be compliant with local law. Once you receive the lease, make sure it includes:
- Lease start and end date
- Monthly rental amount
- Security deposit amount
- Additional deposit and/or rent for pet(s)
- Any additional agreed upon and/or required fees such as parking, facilities fees, or administrative fees to prepare lease documents. These fees are usually associated with apartment complex rentals.
- Prorated rental amount if your lease does not start on the first day of the month
- All occupants listed with names spelled correctly and matching the spelling on IDs. This includes children as you will need your signed lease to prove residency for school registration.
- Any repairs, painting, and cleaning negotiated with the landlord are accurately stated in a special instructions clause or addendum
There may also be special clauses to review, usually negotiated ahead of time by the tenant and landlord. These may include:
Rental Payment Clauses – This includes the rental due date, the parties whom you’ll pay, payment method, and a grace period/late payment penalty.
Security Deposit Clauses/Property Condition - Landlords charge tenants a security deposit typically equal to 1-2 months of rent to cover any damages or excessive wear and tear by the tenant during their time of occupancy. This clause will also lay out conditions for the return of the deposit to the tenant. Each state has laws governing the initial amount a landlord can charge and the conditions for deposit returns. Typically, the deposit must be returned to the tenant within 14-60 days after the lease end date. (Note: Your Dwellworks Move Consultant will provide property condition documentation to assist in any future disputes with the landlord, though there is no guarantee in advance of a landlord’s evaluation of the property condition at the time of departure or what they will challenge. )
Tenant Responsibilities Clauses – This lays out your general upkeep responsibilities as the tenant. These may include taking out the trash, lawn care, snow removal, etc. Note that in many US jurisdictions, the tenant pays utilities costs (electrical, water, and gas), though the landlord may pay for some expenses. Be sure to verify and understand your and your landlord’s obligations.
Repair and Maintenance Clauses - While landlords are responsible for large physical structures like the roof, furnace, and appliances, it’s common for the tenant to be responsible for a portion of repair costs in the apartment itself. This clause may also state that if the repair is required due to the tenant’s negligence, the tenant will be 100% responsible for the cost.
Renter’s Insurance Clauses - Many leases require that tenants must present proof of renter’s insurance before they can sign the lease and take possession of the property. Renter’s insurance protects your personal property from damage and theft. Some landlords may also require that you carry liability insurance and ask to be named as an additional insured on the policy. Your Consultant will help you with local referrals for renter’s insurance. The cost is typically $150--$300 per year depending on the market.
Notice Clauses - This clause will tell you how many days before the end date of your lease you must notify your landlord to either end or renew your lease. The notice period may be anywhere from 60-90 days. Landlords also have a legal obligation to notify you of changes in the cost of your rent at the end of your lease period and of any other terms related to your occupancy in the property.
Lease Breaking – A lease is typically in force for a year. There are month-to-month leases (often at a higher cost) but the most typical lease is for 12 months. If you are requested by your employer to move prior to the full term of your lease or if you choose to move for other reasons, your landlord is not obliged to let you break the lease. The lease is a binding contract and special terms will need to be negotiated in order to exit a lease prior to its full term. Read the clauses carefully in your lease.
Important: Before signing a lease, be very vigilant and read over it carefully. You may consider having an attorney review. Your Consultant does not endorse any particular attorney. This is a service you can discuss directly with your employer.
*This information is provided as a general guideline to rental practices in the United States. Dwellworks does not provide legal advice and all information herein is deemed reliable but not guaranteed.
