Not everyone looking for an apartment to rent has a fat, stable income. The average good salary in Canada is less than $20 an hour which amounts to just $38,764. For those embarking on a career for the first time in the country, entry positions offer just $23,400 on average. Many new immigrants or young millennials starting out on a career have lower or no income. Most of them have a hard time qualifying for rent. Yet, everyone needs a roof over their head. So what do you do? Can you rent with low or no income?
Put yourself in the shoes of the landlord. Would you rent your home to a person with no income at all? Many landlords are dependent on the money they receive from their tenants to pay off their mortgage. Others use it to pay their monthly bills. It is clear why rental agreements revolve around a tenant’s proof of a stable, regular income and credit history. However, if you are unemployed or have a non-traditional source of income, it may be challenging to find a landlord who is willing to rent you a home. Let us help you explore a few loopholes you can work around.
You may be considered for renting if you have the cash to make a deposit. As long as you pay on time every month thereafter, your potential landlord may be willing to consider you. The other alternative is to hand over six months of rent in advance at once, before the lease starts or in rare cases, paying the entire lease upfront or high-security deposit.
Good Credit History
In most cases, a landlord makes a decision based on good credit history. If you are fresh out of college but have the means to pay off the first few months of rent and monthly bills on time, the landlord may be willing to consider you. Make sure you are honest and upfront about your situation. If the landlord is reassured that you will find a job soon and assure them of a stable income in the coming months, you could well be considered.
It helps to get a letter from a former employer or your new one to make it easier. You could even ask your former landlord for a reference letter vouching for your good character, reliability and good credit history. Make sure you furnish them with proper contact information so that they can get in touch when they need to. If you have enough savings in your bank, you may want to get a statement from your bank to qualify you, especially if you are in between jobs.
Co-Signer of Guarantor
If you are unable to guarantee any of this but have a close friend with sufficient income who can sign the lease with you to serve as a guarantor, that can be a good way out. Your landlord will have no objection to the lease even though it may not be the ideal situation for any party – for them, you or your friend. However, your co-signer should know that in the event that you fail to pay on time, they will be contacted to make payments on your behalf.
If the apartment is in heavy demand and the landlord has other qualified applications waiting in line, you may not stand a chance. However, if the unit has been lying vacant for a long time, you may stand a chance. You need to take such market factors into consideration.
Progressive Real Estate, Winnipeg
Are you armed with any of the qualifications above? We can help you find a suitable apartment in Winnipeg within your budget. Check out our website to take a look at our rental homes or apartments. Call us when you are ready!