RESIDENT SCREENING POLICY
Each Applicant (18 years or older), who plans to reside on the premises, must fill out a Rental Application, pay necessary application fees, provide all requested supporting documentation, and meet applicable screening requirements in order to be considered. Applicants not providing requested information or documentation within a reasonable amount of time, may be denied.
Any misrepresentation or omission made by Applicant during the screening process will result in immediate denial of the Rental Application and may constitute a material breach of any existing Rental Agreement. All verifiable income and liquid assets will be considered.
While the screening process looks at certain things individually (such as tenancy history) and certain things collectively (such as income), when multiple individuals are applying for a rental unit, each person is both jointly and severally responsible for the performance of all terms and obligations under any rental agreement. For this reason, it is the Owner/Agent’s discretion to select Residents most likely to fulfill their obligations to the lease.
Cosigner Requirement
A qualified cosigner is required for approval when an Applicant cannot provide at least two years of tenancy history (not including dormitory housing, family-owned housing, or previous home ownership) or does not meet the required employment and income/liquidity standards. In the event Applicant doesn’t have a previous tenancy to verify (i.e., minimal rental history) or has not been a property owner with verifiable mortgage payment history, Applicant may provide a qualified cosigner that can produce verified liquidity in the amount of 36 times the amount of their portion of the total rent being applied for (in addition, to the income requirements) or if Applicant is a foreigner, a copy of their Visa showing funds verified by the U.S. Government. For more information, please review the Cosigner Screening Policy.
Photo Identification
Each Applicant must provide a valid government-issued photo. Acceptable identification includes a current driver’s license, passport, and/or state-issued photo identification card. A photocopy will be retained for our records. Foreign Applicants must provide a copy of their entry visa (I-20, H-1, etc.) along with a copy of a current and valid passport.
Tenancy History Requirement
Each Applicant must provide a chronological history and contact information relating to their current residence and any residences from the previous four (4) years. In the event Applicant has neither owned nor rented a property in the four years preceding, Applicant may provide prior residency history in order to meet the four-year requirement. Owner/Agent will make attempts to verify previous tenancies. A negative tenancy reference will result in the Applicant being denied, regardless of whether Applicant believes the reference is unjustified.
Unlawful Detainers, Evictions, or Lawsuits with Property Owners
Disclosure or discovery of an eviction, Unlawful Detainer, or lawsuit with a rental property owner will result in immediate denial of the Rental Application, regardless of whether the Applicant believes the legal action was unjustified.
Where Owners/Managers of prior residences are unable to provide a reference due to a change in ownership, loss of records, or company policy, Owner/Agent may consider a positive reference from at least one previous residence as sufficient to meet the requirements. Owner/Agent reserves the right to utilize the ability to verify prior residences as a condition for acceptance of Rental Application.
Employment, Income/Liquidity, and Financial Requirements
Current employment must be verified. Applicants are requested to provide a recent pay stub containing year-to-date totals and/or a phone number of an employment supervisor who will verify Applicant’s income. Self-employed Applicants must provide their Schedule C or the top two pages of their filed Income Tax Return for the previous tax year.
Student Applicants who have recently graduated from an undergraduate or graduate institution may provide an offer letter establishing future employment. The total gross income of all Applicants must equal at least three (3) times the monthly rent. Applicant may provide liquidity information or a qualified cosigner as a substitute for employment and/or income.
Foreign Applicants may provide a valid entry visa showing that they have proven to the U.S. Government that they have enough funds available overseas to satisfy liquidity requirements.
For Applicants with no monthly income derived from employment, Applicant must provide proof of recent liquidity (e.g., savings account, retirement or investment fund, securities, etc.) to qualify. Liquidity must equal at least three (3) times the annual rent.
All verifiable income and liquid assets will be considered
A combination of monthly income and liquidity may be used at the Owner/Agent’s discretion for Applicant qualification.
Financial aid or student loans may be considered income. Qualification will be determined by total income divided by nine (9) months. Please note: a cosigner may be required if the Applicant does not satisfy tenancy history or other rental criteria requirements.
Applicant must have a maximum rent and monthly debt ratio of 50% (rent plus monthly credit commitments divided by total verified monthly income or liquidity)
Section 8 and Other Rent Subsidies
An approved Section 8 Voucher or other government subsidies without an expiration date may be used to offset employment and income requirements according to Berkeley Housing Authority’s relevant payment standard at the time of application. Applicant is also required to meet all other Rental Criteria. If Applicant does not meet credit score requirements, Applicant will be asked to provide additional proof of ability to pay.
Credit Requirements
All Applicants will be required to consent to a credit report inquiry by at least one major credit bureau (Transunion, Equifax, or Experian). All collection accounts and public records must be paid off, or a written explanation satisfactory to Owner/Agent must be provided. A credit score of at least 700 will satisfy the credit requirements.
For Applicants with housing vouchers, if Applicant does not meet credit score requirements, Applicant will be asked to provide additional proof of ability to pay.