Rental Process in Texas
February 19, 2021
Rental properties in Texas could be roughly classified into 4 categories
- Apartments and condos managed by an onsite crew
- Properties advertised and managed by a property management company
- Properties advertised by real estate agents and managed by the owner
- Properties advertised by the owner and managed by the owner
Why are those differences important? Due to the current shortage of rental properties all over North Texas, getting accepted into a rental property of your choice can be easier or more difficult depending on who manages the application process. Also, the application process will be slightly different for all four categories
Apartments and condos managed by an onsite crew
- Start here: Visit their web site and review anything that mentions Applicant Criteria. Decide if you can qualify before visiting the property, applying, or paying the application fee.
2. Request a property tour: Their website will show available floorplans. The tour of the model units or available units is performed by one of the managers from the central office. Due to COVID, visiting hours could be restricted.
3. Start the application process: They will have a website where you can submit an online application or you can fill out a paper application in their front office. Each adult over 18 would need to submit an application. You will likely need to create an account to submit your documentation into their “portal”. Due to COVID, visiting hours could be restricted. Follow their website instructions.
4. Application fee cost and timing: Application fee information and the payment options will be provided on their website. If you are applying in person, ask them if they could review your application before you pay the application fee, in case they decide that your credit score or your rental history could present problems.
5. Sign the lease, arrange the move-in date, and negotiate additional details like parking, mailroom, pet deposits. Check to see if you will need to connect utilities
6. Pay all deposits & receive the keys. Connect utilities and change your mailing address with the postal service.
7. Realtor cost to you: Zero. The apartment complex has its own referral reward program.
#Elena’s favorite apartment complex in Addison: Hutton Creek
Put Elena Garrett as your referral in your application and receive a gift card to a store of your choice after you move in! Contact me for details. Disclaimer: I will receive a referral commission after you sign the lease contract
Properties advertised and managed by a property management company
Property management companies usually have “property management” as part of their company name (but not always). They have pretty strict processes and requirements for processing all applications. These properties are usually found on MLS, although not always
Decide if the rental requirements would work for you. Ask me to review the property’s Applicant Selection Criteria. Decide if you can qualify before visiting the property, applying, or paying the application fee.
Request a property tour: I will come to show you the property, explain all the property features, go over all applicable fees and deposits, and discuss any unusual stipulations about the terms of the lease.
- Tip: Decide whether the property needs any repairs or paint/carpet, take photos.
- Tip: If I am not your Realtor, ask the Realtor you called whether they represent the landlord or you.
- Tip: Avoid working directly with any Realtors who represent the landlord. Work with your own Realtor whenever possible.
Find out whether you are the only applicant. Many properties (especially scarce properties like homes with pools, homes with RV parking, homes with acreage, homes on the golf course, etc) receive 3, 5, 10 rental applications. If you are an applicant #2, 4, or #6, your chances of getting your application accepted are slimmer.
- Tip: MAKE SURE to still apply for the house (the previous applicants might fail a background check, you never know!). But ask me to help you to win the property. I will design a strategy that will increase the chances of your application being accepted.
Start the application process: Most property management companies have quite a complex screening process that will take a few days to go through. They will usually have a website where you can submit an online application unless they ask you to fill out a TAR (Texas Association of Realtors) application. Each adult over 18 would need to submit an application. You will likely need to create an account to submit your documentation into their “portal”. Make sure to request any repairs or cleaning during the application process.
Application fee cost and timing: Application fee information and the payment options will be provided on their website and by me (depending on how their process is structured). Usually, they will require you to process the application fee payments before you can finalize their application process.
- Tip: If your application takes more than 1 evening to complete, ask me to call the property manager again and ensure the house is still accepting applications before submitting your application.
Wait for the updates on the status of the application. It may take several days to process the application. Expect a snail-slow process.
Sign the lease and pay deposits. You will need to pay your deposits (usually 1x month rent plus any pet deposits) within 1-2 days of your application being accepted. Failure to pay it quickly can result in you losing the application.
Connect utilities & receive the keys. Connect utilities and change your mailing address with the postal service.
Realtor cost to you: Zero. The landlord pays your Realtor a commission
Properties advertised through a Realtor in MLS
In my experience, you will receive the most benefits (in terms of having your application accepted) from those rentals that are advertised by Realtors. Most Realtors who list rental properties do it as a side job and have a much more relaxed and informal process than property management companies do. These properties are always found on MLS as Realtors use MLS as their default marketing tool.
Decide if the rental requirements would work for you. Ask me to review the property’s Applicant Selection Criteria. Decide if you can qualify before visiting the property, applying, or paying the application fee.
Request a property tour: I will come to show you the property, explain all the property features, go over all applicable fees and deposits, and discuss any unusual stipulations about the terms of the lease.
- Tip: Decide whether the property needs any repairs or paint/carpet, take photos.
- Tip: If I am not your Realtor, ask the Realtor you called whether they represent the landlord or you.
- Tip: Avoid working directly with any Realtors who represent the landlord. Work with your own Realtor whenever possible.
Find out whether you are the only applicant. Many properties (especially scarce properties like homes with pools, homes with RV parking, homes with acreage, homes on the golf course, etc) receive 3, 5, 10 rental applications. If you are an applicant #2, 4, or #6, your chances of getting your application accepted are slimmer.
- Tip: MAKE SURE to still apply for the house (the previous applicants might fail a background check, you never know!). But ask me to help you to win the property. I will design a strategy that will increase the chances of your application being accepted.
Start the application process: For a Realtor-advertised property, usually you will need to submit a TAR (Texas Association of Realtors) application. Each adult over 18 would need to submit an application. I will work with you to understand what supporting documentation may be needed for the application.
- Tip: Make sure to request any repairs or cleaning during the application process.
- Tip: If your application takes more than 1 evening to complete, ask me to call the listing agent again and ensure the house is still accepting applications before submitting your application.
Application fee cost and timing: I will provide you with the information about the application fee and the payment options. Usually, you will be able to submit your application first, and then wait to see whether the owner wants to take the process one step further and order a background/credit check. Expect a faster and much more agile and flexible process than with property management companies.
Pay the application fee. If you are being asked to pay the application fee, that usually means that the owner reviewed your application and liked it enough to decide to do some final verification of your history. Usually it means that you have entered the last stretch of this process. Unless multiple applicants are being background-checked simultaneously, you should be very close to getting your application accepted.
Sign the lease and pay deposits. You will need to pay your deposits (usually 1x month rent plus any pet deposits) within 1-2 days of your application being accepted. Failure to pay it quickly can result in you losing the application.
Connect utilities & receive the keys. Connect utilities and change your mailing address with the postal service.
Realtor cost to you: Zero. The landlord pays your Realtor a commission
For Rent By Owner
Private landlords who do their own advertising, screening, and property management are often the most unpredictable but flexible group of landlords. However, be aware that some do not live up to their agreements. Their properties could be harder to find because they do not always advertise online.
Start here: Discuss with me the possibility of using a private landlord. Private landlords not represented by other Realtors usually do not pay Realtors (me) any commission, so I may not able to be assist you with your outside-MLS research, or you and I might have to develop a commission agreement in which you agree to cover my commission.
Locating private landlords. This could take a while and lead to uncertain results, as there is no centralized online site that advertises those landlords. The private online space where you could find them is usually swarming with scammers preying on would-be renters.
- Tip: Watch out for rental scams on Facebook and other social media!!!
- Tip: All private landlords found on various websites need to be screened to make sure they are ACTUAL owners of the property and to see if any negative information about them can be located.
- Tip: Make sure never to forward “application” fees or “deposits” to anyone unless their ownership of the property can be verified by your Realtor and you have seen the property in person.
Property tour: Usually the owner will show the property himself or herself. Take extreme care when reviewing the property. Assume it has hidden defects. Ask your Realtor to accompany you to the viewing.
- Tip: Decide whether the property needs any repairs or paint/carpet, take photos.
- Tip: During the showing, discuss with the owner the application requirements, documentation for verifying your income, renter selection requirements, credit check fees, and what type of lease agreement will be prepared.
- Tip: Insist on using the standard TAR lease agreement if you can.
- Tip: ask the landlord to provide written application instructions, disclosure of all applicable fees and deposits, and tenant selection criteria.
Start the application process: Follow the landlord’s instructions for the application and for any supporting documentation
Application fee cost and timing: Discuss the costs and timing with the landlord, each landlord will have his or her own process for getting your application verified.
Pay the application fee. If you are being asked to pay the application fee, that usually means that the owner reviewed your application and liked it enough to decide to do some final verification of your history.
Sign the lease and pay deposits. You will need to pay your deposits (usually 1x month rent plus any pet deposits) within the time frame specified by your landlord. Failure to pay it quickly can result in you losing the application.
Connect utilities & receive the keys. Connect utilities and change your mailing address with the postal service.
Realtor cost to you: as per your agreement with your Realtor.
