Sunday, March 24, 2013

Rental History. How to Avoid the Pitfalls of Being A Renter...

It happens all of the time. A person rents a home from a landlord and makes their payments on time, every month. They pay by money order, cash or both, thinking they are doing themselves a good service. Things are going well with their job and life in general, and they save up enough money for a down payment on a new home. And then, they discover that they have a rental history issue.

In the past, lenders required a 12 month rental history from either an institution as a Verification of Rent (in mortgage lingo that's a VOR), or 12 months worth of canceled rent payment checks as part of their qualifying process. While this is not normally an issue with FHA financing, a Conventional loan will almost certainly require a VOR or 12 month's canceled checks for renters. 

You will not have anything to worry about if you live in a apartment complex, the lender will just require a VOR from the rental management company.  Here is something to think about.  Try to stay in the good graces of the rental office.  You don't want the office manager you had an argument with 3 months ago filling out your VOR.

The best advice I can give on rental payments to a landlord or a apartment complex is this - pay on time and pay with a check.  On time shows consistency and a check provides a paper trail.  And be a good tenant.  If you are ever going to consider moving out or ending your lease for bigger or better things to come, you may need your landlord as an ally.  You will be glad you were a reliable and cordial tenant once you try to take on a new phase in your life...


  1. Rent to Own PhiladelphiaThank you a great deal with regard to expressing! Anyone deliver a great deal of valuable tips and advice. Economic planning is critical in addition to everybody ought to do the item - also start out while very young. But, it's just as crucial that you learn that we now have solutions as soon as folks require funds rapidly for instance receiving. rent to own homes

  2. I totally agree with you Provashi. I have seen plenty of people who would have made different decisions if they had only known better. That's why I started this blog - to help people to make good decisions about what they should do BEFORE they decide to try to buy a new home...

    Thanks for your response !