773-645-4455

Top 3 Factors Used for Approving a Tenant Looking to Rent in Downtown Chicago

12|04|2015

Search Downtown Chicago’s luxury apartments for rent. Apartments for rent range from luxury studios, luxury convertibles, luxury 1-3 bedroom apartments, townhomes, and penthouses. 

Search Apartments Here

Schedule a Private Showing: P: +1 773-645-4455 E: contact@vestapreferred.com

The downtown Chicago luxury rental market is vibrant with thousands of potential apartments waiting for you to call them your next home. However you could possibly be wasting a lot of time and effort if you can’t get approved for one.

 

In Chicago, landlords and management companies have standards for approving their next tenant-to-be. Understanding the criteria needs to be a critical early step in your search. The approval process can differ from apartment to apartment but the core criteria rarely waivers.

 

The top 3 factors are listed below with an explanation on what to expect with each:

1. Credit Score

The ever important and almighty credit score. In the simplest terms, the personal credit score is your financial fingerprint. The number that institutions use to judge how much they can trust you to pay your rent/mortgage/car payment/etc. A poor credit score won’t get you too far. Each properties acceptable limit’s are different, if your score is in the lower 600’s or less you might begin having issues with approval.

2. Income

Chicago luxury downtown apartments average rent is quickly rising and at an average of $2,200/month -- it’s not inexpensive! Rent in many cases is an individual’s highest monthly bill. WIth that being said, an individual’s income is a strong determining factor in the approval of a potential tenant. One calculation used to determine if a specific individual is able to afford the apartment is the following: 

Chicago rent should be equal to or less then one third of your monthly intake.

As an example here is how the calculation would work (feel free to substitute the rental amount to figure out your individual numbers):

Rent : $1,000

$1,000 x 3 = $3,000 minimal monthly income intake

$3,000 x 12 = $36,000* minimal annual salary required

Another way to get approved for the income piece is by holding a bank account with a generous amount of liquidity. How much is again determined by the rent. However you have to hold three times the annual rent minimally in liquid assets. So as an example:

Rent : $1,000

$1,000 x 12 = $12,000 annual rent

$12,000 x 3 = $36,000* amount required to have in a bank account tied to your name for approval.

*If your annual income does not meet the standard please see co-signers below

3. Criminal Background 

Different crimes carry different weight but a criminal record presents a hefty barrier in getting you approved for a luxury Chicago apartment.

Other factors to consider:

  • References 

Many landord’s want references, professional and personal, to call and do further research on the potential tenant. So be ready with a few names in the case the luxury downtown Chicago apartment you are interested in requires it.

  • Co-Signers

If your income falls short you can have a co-signer sign on with you for their income to be used in determining your approval. A co-signer becomes 100% liable for the rent if you don’t pay. In some cases a co-signer can be used if you have a low credit score as well but not in all cases. In even fewer cases a co-signer is allowed if you have a criminal background.

ARE YOU LOOKING TO BUY, SELL, INVEST, OR RENT IN CHICAGO? IF SO: CONTACT US HERE.

WHY SHOULD YOU EXPLORE AN OPPORTUNITY WITH VESTA PREFERRED REALTY?
TALK TO A VESTA PREFERRED REAL ESTATE AGENT