How is the renting decision being made?

Last Updated on 2024-07-10 by Tom

Have you ever faced the disappointment of a rejected rental application and wondered, “What went wrong?” It’s a common scenario that often leaves many feeling frustrated and perplexed. But while rejection can be tough to swallow, understanding the reasons behind it can offer valuable insights for the future.

At ACTs ROAR, we believe in honesty and transparency. We’re here to shed light on the topic and provide you with the clarity you deserve.

When it comes to rental rejections, it’s natural to have questions. However, few take the initiative to seek answers. Some are genuinely interested in learning and improving, while others may have less noble intentions.

For landlords and property managers, the prospect of dealing with confrontational inquiries can be daunting. As a result, many choose to either ignore such questions or provide vague responses to avoid potential conflict.

Here at ACTs ROAR, we believe in the importance of setting the record straight. We have no interest in picking fights or assigning blame. If rejection is what you’re seeking, then let’s be perfectly clear: it’s not about your color, ethnicity, gender, or income. Discrimination has no place here.

But if you’re genuinely interested in learning and improving, then you’ve come to the right place. So, let’s get down to the nitty-gritty.

The simple question when landlords/owners are making the final decision is all boiled down to this: Are “WE” the best match possible? Period.

Who are we referring to when we say “we”? We’re talking about the home, the tenant, and the landlord. It’s about finding the right fit for all parties involved.

When landlords and property agents select tenants, they’re making a significant investment. That’s why they set standards to ensure they choose the best candidate possible. In ACTs Roar, we use the following so-called 6-factor 18 Score system as explained briefly below:

  • Rental History (0-3): How long have you been renting in your current home? This factor reflects your stability as a tenant and your ability to maintain a long-term commitment.
  • Employment Stability (0-3): Similarly, how long have you been working in your current job? Employment stability demonstrates your reliability and ability to meet financial obligations over time.
  • Rent-to-Income Ratio (0-3): This ratio, as per many government guidelines, is often recommended to be no more than one-third of your gross income. It indicates your ability to comfortably afford the rent without experiencing financial strain.
  • Credit Rating/Report (0-3): Your credit history is a reflection of your financial responsibility and reliability. A clean credit report with no issues indicates trustworthiness and reliability, and vice versa.
  • Previous Landlord/Background Check (0-3): This factor assesses your behavior as a tenant and your ability to maintain positive relationships with landlords. And yes, the key principles in Dale Carnegie’s “How to Win Friends and Influence People” will never go out of date.
  • “Close-eyes” by Daniel (0-3): Finally, there’s the intangible factor of gut feeling or intuition. While difficult to quantify, it’s based on subconscious cues and instincts obtained through interactions during the whole renting process – It is the perfect final pinch to complete the overall scoring process, based on the wisdom generously shared by the book “Thinking, Fast and Slow” written by Nobel Prize winner Daniel Kahneman.

After evaluating yourself based on these six key factors, you can gain valuable insights into your rental application. Your total score out of 18 will indicate your overall suitability as a tenant. Scores of 14 or above suggest a great match, while scores of 11 or less indicate significant room for improvement.

Another important point is to not take it too personally. It is a business, and sometimes luck does play a role in the end result. For example, although rare, we do run into situations where the finalists among many applicants actually have the same perfect 15 or 16 score, then luck will strike its magic to make the final pick. After all, one home can only accommodate one perfect family instead of two. The moral of the story is not to hang too tightly on the result, but rather to embrace the journey and move forward to becoming better along the way.

We hope this information serves as a valuable resource for your journey as a tenant. If you’re committed to becoming the best version of yourself and becoming one of our community of like-minded individuals, then subscribe to our free weekly newsletter by submitting the simple form below.

We are looking forward to having you grow and thrive together!