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Looking to lease a house in the Austin area?
Leasing a house is different from leasing an apartment!
Most apartment
owners own apartment complexes, with 100’s or 1,000’s of apartments. They have 100’s or 1,000’s of rent checks coming in each month, so if one or two of the checks don’t come in—it’s not a big deal—the owner still has a large income!
Owners of rental houses, however, are different. Most own one rental home (possibly a few) and are very dependent on that one rent check every month! Usually, the house they’re renting out is their old home, which they have moved out of for one reason
or another. They are still paying the mortgage every month and need the rent check to arrive each month so that they can cash it and pay the mortgage. These owners are especially concerned with having the kind of tenants that will pay the rent on time—every month, and who will NOT damage their one income-producing
property. Because of this, owners of rental houses are usually a lot more “picky” about the tenants they accept than owners of apartment complexes are.
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Regarding Credit:
Most owners of rental houses will require a prospective tenant to have somewhat good credit. A few late payments or disputed accounts will probably not make a landlord turn down your application, but a history of bad debts may.
Most landlords will look to see if you have paid past utility, phone and cable bills. If these are left unpaid when you move, the landlord may think that you have purposely not paid them—and if you’ll “stiff” these companies, you’ll be likely to “stiff” a landlord, too.
If your credit was bad in the
past, but you've cleaned it up over the past year or so, even if you’ve had a bankruptcy or foreclosure, many landlords will accept your application.
TX property code law allows landlords to reject an applicant if the applicant has poor credit (as shown by the credit report). If rejected for credit reasons, the tenant should be told the reason for rejection and the landlord should give the tenant the name and address of the credit reporting company that the landlord received
the credit information from. See the Quigley Team Privacy Policy regarding Leasing.
Regarding Rental History:
A growing number of landlords rely more on reports from past landlords than on your credit
report! "Stiffing" your landlord is like shooting a cop--it follows you for years and years! A vast majority of landlords will NOT rent to anyone who has a poor report from a previous landlord!
Most landlords will require that past landlords be contacted to see if you have paid your rent on time and kept the property in good condition. Many will not lease to anyone who does not have a good,
verifiable past rental history (from landlords other than family members or friends).
Some landlords may also require background
checks on
prospective tenants. Applicants that do not pass these checks may be rejected by some landlords. If you have no past rental history, some landlords MAY reject your application, but others may base their acceptance or rejection of your application on your credit report
alone.
Many landlords are now REPORTING lease violations, evictions, & eviction filings to National Data Bases! The Quigley Team always checks these DB's when processing an application for rental of a property owned by a landlord that we represent!
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Landlords' requirements may differ!
REALTORS must comply with each individual landlord’s requirements (as well as the law) when procuring a tenant for that landlord, and INDIVIDUAL LANDLORDS HAVE DIFFERENT REQUIREMENTS! Those who own the nicest houses (those that are clean, well-maintained, have many upgrades and are located in
the most sought-after parts of town) will have more stringent requirements than others. If the home is clean and in good condition, the owner will want to be sure that the tenants who rent it will keep it that way!
How to QUALIFY to lease a home in the Austin area:
Your application for rental may be rejected if you do not “qualify”. In order to qualify to lease a property in the Austin area, a tenant should have a gross monthly income of at least three times the amount of the rent. If there are two or more applicants (roommates), a
landlord may require that each applicant
individually qualify (each has to have a gross monthly income of three times the rental amount). This is to make sure that if one tenant vacates, the other will be financially able to pay the entire rent. However, some landlords will waive this requirement.
Pets:
Landlords will also differ on whether or not a pet will be accepted. Most landlords that accept pets will require a pet deposit, in addition to a security deposit, and some will charge additional rent ($10 or $25 or more each month as pet rent). Most landlords that accept pets will do so with
conditions, such as: the pet must be below a certain weight; there cannot be more than one (or two, etc.) pets; the pet must be a certain age (not puppies—they are usually not housebroken), neutered, de-clawed, etc. Some landlords will accept dogs—but not cats. Others will accept cats—but not dogs! Many will accept only
certain breeds. Pit bulls, dobermans and rottweilers are examples of breeds that are often rejected. Most landlords will also reject exotic pets such as snakes, lizards, etc. It is up to the
individual landlord. If you have a pet, it is best to check with your agent, to see what the pet requirements are.
Pet deposits, also, will vary with the individual landlord and property (a property with a brand new carpet often requires a higher pet deposit). A larger pet deposit may be required for larger pets—because larger pets can cause more damage (sometimes). For properties owned by the Quigley Team, we charge $300 per
pet for pets up to 30 pounds and $10/pound per pet if over 30 pounds. If you lease a Quigley Team-owned property, your pet
deposit(s) and security deposit will be put into an interest bearing account. All deposits, along with interest, will be returned to you after you move out IF you have complied with the lease and NOT caused any damages (and the property is left clean). Other landlords may have other requirements.
If you violate the pet agreement and bring in additional pets, the consequenses can be very expensive. Pet violation charges can be $25 or $50 initially, plus $10 or more PER DAY, PER UNAUTHORIZED PET. If you have an unauthorized pet for a month, it could cost you $50 (initial charge) plus $300 ($10 per day for
30 days), for a total of $350! Two unauthorized pets for this time period would make the charge $700! The fact that you violated the lease agreement will also follow you--and make it unlikely that another landlord will accept you as a tenant in the future!
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Something You Should Be Aware Of Regarding Real Estate Agents:
OR... How to Get a Real Estate Agent to do the Very Best Job for You!
Only a small percentage (probably less than 10%) of real estate agents in the Austin area are leasing agents. Most of these are sales agents who also do leasing. Most agents make their livings by selling homes, not by leasing. This is because there is very little money to be made
by leasing homes.
A typical leasing commission can be 25% to 50% of the first month’s rent. If the rent is $1,000 and the commission is 25%, it is $250—for the agent AND his/her broker. Many times this amount doesn’t even cover the cost of gas—never mind the agent’s time. And often, the tenant (that an agent has
driven around for two or three days) decides NOT to rent at this time—or finds a lease property on his/her own—leaving the agent with nothing to show for his/her time and effort! No wonder so few agents are in the leasing market!
The Quigley Team will gladly show you any rental properties that they have listed. If you wish to have us drive you around to show you other listings, we require that you sign a Tenants' Representation Agreement, agreeing to lease only through the Quigley Team. In addition, we require a $100
(cash or certified funds) retaining fee up front. This retainer fee is fully reimbursed, along with an additional $25, when we receive the commission for the lease. Also required is... your ability to pay application fees without delay!
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PLEASE…Be Considerate!
If you find a good agent, who is willing to help you find a lease home, PLEASE be considerate of that agent’s time. How?
1.
Be loyal to that agent—work with one agent, exclusively. An agent who knows that you will not go off and find your own rental without him/her will be willing to devote more time and effort to helping you find the right rental home. Sign an agreement with the agent, agreeing to use that
agent exclusively! (Licensed agents can show you ANY and ALL lease homes listed in the Austin MLS; thus, they can access ALL listed homes, whether they are listed by the agent's broker or ANY OTHER broker!)
2.
Don’t waste your agent’s time. If there are others who must view the home before you make a decision (spouse, roommate, etc.) please make an appointment with the agent to show the home to you with everyone else--at the same time.
3. Be prepared to make a decision, fill out the application and pay the application fee and security deposit (in certified funds) at the time you go looking for a lease home.
The home you look at today may be leased later this evening—and the time you and your agent spent looking is then wasted time, if another applicant leases it tonight and you waited to "think it over"! If you’re not ready to lease something, don’t look
until you ARE ready!
4.
If there is anything about you that may be of concern to a landlord, level with your agent! Poor credit, lack of a past rental history (or a poor past rental history), a large pet or pets, etc. can be reasons for your application to be rejected by some landlords.
Most agents in the leasing
business know which landlords will overlook some of these items and which landlords will not. Tell your agent, up front, if any of these items apply to you. Your agent will not waste your time showing you homes whose owners will NOT lease to you; he/she will take you directly to the homes whose owners will
overlook the items.
If you put in an application to lease a home whose landlord will not accept tenants with certain of the above items, you may not only lose your $35 to $70 (or so) non-refundable application fee when these items show up on your credit report, but your application
deposit (security deposit) funds may be tied up for several days or more, while you wait for the landlord (especially an out-of-town landlord) to endorse the certified funds back to you!
5.
One final thing…Many of the homes you wish to view may have occupants living in them. Your agent will need to know which homes you wish to visit ahead of time, so that he/she has time to put the list in “driving order” and call to make appointments with the occupants (preferably
the day before).
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INFORMATION FOR RENTERS WHO ARE RELOCATING TO AUSTIN:
Qualifying:
Typically, your gross monthly salary must be three times the amount of a month’s rent for you to qualify to lease a home (or apartment) in this area. Some landlords require it to be three and a half times the rent amount.
Traffic:
The traffic in Austin can be very annoying! If you must commute to and from your Austin-area job during rush hours, you will probably want to find a home that is relatively close to your workplace. If you have “flex-hours”, you will find the commute on Austin area highways to be very pleasant and quick—but NOT during rush hours!
If you can
commute, you will be able to lease a lot more home for your money! (Homes “close-in” to downtown are older, more expensive and often not in good condition relative to “further out” homes.)
Appliances: All homes come with a range/stove. Some may have built-in microwaves, if not - it is not included. Most newer homes have dishwashers and disposal units. Occasionally a lease house will have a
refrigerator - but most will not have one - ask your agent to check for you. (Most apartments have a refrigerator;
duplexes may or may not!) Occasionally a lease house will have a washer and dryer—but this is very rare!
Search the local "Homes for Sale or Lease" Database for your next home:
You can get information about almost all actively for sale or lease homes on the Quigley Team website,
www.quigleyteam.com. Click on “Search Homes DB ” at the left (or “Search Listings” at the bottom) of the site. Be sure to specify whether you want “lease” or “residential” (sale) homes. This search feature is free for you to use whenever you like--there
is no cost and no obligation to you for using it--and we will NOT “capture” your name and e-mail address to “pester” you later. We do NOT like high-pressure salespeople, so we will NOT pressure anyone--we practice Real Estate by the Golden Rule!
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What to bring when you come to Austin to search for a new home:
When you come to Austin to begin your home search, please bring:
a photo Id.
(Required!) and enough money (in traveler’s checks, preferably) to cover the cost of application fees and application deposits.
Most landlords require a non-refundable application fee of $35 to $70 per applicant, in certified funds, at a minimum.
This fee is for the cost of credit and background checks, as well as the agent's time to verify your employment
and contact your past landlords. If your current or past employers or landlords require a fee to release information about you, YOU are responsible for this fee (in addition to the application fee.) If you are from out of state there
may be additional charges to check your background . There may also be delays in getting background information from other states.
A landlord will NOT hold the home off the market for you unless you also put up an application deposit, which later will become (or apply toward) your security deposit. This, also, must be in certified funds. If,
for any reason, the landlord rejects your application, the application deposit is refundable to you.
Signing
the Lease:
If your application is accepted, you will have 48 hours from the time you are notified to sign a lease. If you do not sign a lease during this time, you may lose your application
deposit.
Most landlords want a full month’s rent on move-in, up front, even if you move in at the middle of the month. You will be asked to pay the “short” month’s pro-rated rent on the first of the next month. (Top)
Application Deposit:
Some landlords may be willing to accept a portion of the application deposit now and the rest at move-in. Those that allow this usually require that you have good credit and a good, verifiable past rental
history. If you know that yours is NOT good, don’t waste your time asking for incentives from the landlord--your application will be rejected and you will lose your application fee if your credit and references are checked and found to be unacceptable.
TIMING:
The right time to start looking is NO SOONER than 30 to 45 days before you want to move! (Landlords usually receive only 30 to 45 days notice from tenants.)
Homes available today will probably be leased and no longer on the market a month or more from now and
landlords will NOT want to hold their properties off the market for you for more than a week or two! If you want to get an idea of what you might lease at what price--use our "Search DB" feature. Please do not waste your time or your agent's time seeing homes that will be leased long before you're ready to move!
A large number of lease homes are managed by management companies. These companies are generally CLOSED on weekends, so you (or your agent) cannot get information, submit an application, etc. until Monday. If you plan to be in the area
for only a day or two, you may not have enough time to find the right home, submit an application, wait for it to be processed and sign a lease. Please give yourself enough time.
(If you contact your REALTOR to discuss your home search criteria BEFORE traveling to Austin, your REALTOR will have time to research and select the homes that fit your
needs and make appointments ahead of time, so that you will be ready to start looking as soon as you arrive. Please call well in advance of your trip to Austin to make an appointment, so that your REALTOR can reserve
his/her calendar time for YOU!)
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Please call the Quigley Team if you have questions about purchasing or leasing a home in the Austin area.
(Our "Advice" Information has
been compiled over many years and is both copyrighted
© AND considered "unique" in this
business! Please Do NOT
use it
without giving the credit, where it is due...thank you!) |
AUSTIN "STATS"