Renters looking for an apartment in New York City will find that all landlords, letting agents, and property brokers will run a credit report–making a credit clean-up essential for applicants with adverse issues on their credit file.
The reason for credit scoring is that landlords and property managers need assurances that a tenant they choose to rent to is responsible and unlikely to fall behind with their rent payments. In this most competitive of property markets, where there is a huge demand for high-quality apartments, your credit score could make a significant difference to your prospects.
What Credit Score Do I Need to Rent a New York Apartment?
Every credit bureau uses a slightly different scoring method, so the exact credit score you require to be deemed a ‘good’ tenant may vary. As a rough guide, a credit report that shows at least a fair credit score is the minimum, although a good or excellent credit rating is preferable.
If you need help with credit repair, it is well worth addressing your credit history as soon as possible, giving you sufficient time to restore your credit rating to a suitable level.
Applicants with a low credit score or without a credit rating commonly find that other candidates interested in an apartment will be prioritized. Some landlords will set a threshold credit rating for any prospective tenant and refuse to let anybody with a credit score below that level.
Why Do Landlords Assess Applicants’ Credit Ratings?
The landlord or property manager has discretion about who they accept as a renter, so they are unlikely to take a risk if one applicant has a low credit rating or signs of debt and defaults, and they have plenty of others to choose from.
Most use third-party credit assessment providers to determine whether a tenant is a good payer, clears their bills on time, and manages their money well. Credit reports produced for landlords will show a credit rating, an evaluation of what this means, and potentially a more detailed credit history, depending on the depth of information requested.
This reporting may show open collections in progress, a record of past credit issues, and any instances of late payments, defaults, or action taken against you to recover outstanding debts. Landlords may also impose a minimum income requirement, usually based on the monthly rent multiplied by a nominal amount.
You may be asked to provide proof of your identity, copies of payslips, bank statements, tax returns, and a letter or contract confirming your employment position. Tenants without a great credit score might be considered if they can put forward a guarantor and meet the landlord’s other criteria well.
How to Improve Your Chances of Renting Your First-Choice Apartment in New York
If you intend to rent an apartment in New York City, it is best to be prepared. The first step is to access your credit report to understand your credit standing and address any errors or inconsistencies. It is also wise to review the landlord’s renting policies, such as the minimum income requirements we mentioned, and to have copies of your documentation available.
New tenants will almost always be expected to pay a security deposit. If you have resolved any issues shown on your credit report, restored a healthy credit score, saved the appropriate deposit, and can provide a complete application with copies of the requested paperwork attached, you will be considered a desirable tenant–and you’ll be far more likely to be able to rent your perfect apartment in New York City.