The number of people between the age 50 and 74 who rent an apartment has increased significantly since 2004. This trend of renting is expected to accelerate even more in the coming years. Douglasville retirement communities for the retired people is also a good option. One of the important reason for this phenomena is the increasing lifespan and thus using the home equity funds for their extended lifespan.
The landlords and management companies are concerned about the prospective tenant having sufficient funds to cover the rent for the period of lease.
The retired person is at a disadvantage when it comes to proving an income. It is easier for the people who have pay slips to show their proof of income and landlords do not hesitate much in renting out.
When it comes to a retired person, the options are limited. However, as the trend is on the rise, the solutions to these issues are also coming up all the time. Some rentals have come out with a checklist that could verify the ability of the person to able to pay the rent like W2s, assets, credit rating, etc.
Douglasville retirement communities are preferred by some old people as they provide assisted living facilities.
The process of qualifying for getting an apartment on rent is more or less similar that of qualifying for a mortgage. However, this is less standardized and sophisticated.
Financial Documents
Some renters accept financial documents as copies of statements for IRA, pension letters or bank account statements, social security, etc. Another consideration is the continuance of income. Usually, assurance of payment is for 12 months is considered, unlike in mortgage where three years may be the period for consideration.
Statements from Third Parties
Some people do not wish to share their financial details with the renters. In such case letter from their banker, accountant or the trust beneficiary may suffice. The letter from an accountant would be a letter by the accountant “I have been maintaining the person’s accounts for the past 25 years, based on the tax filings and income declarations they would be able to meet the financial obligations every month. My assurance is on based on the paperwork but I will not be specifying their net worth or asset holding.”
This may be unacceptable to many as it is only an assurance and financial situation could change anytime. Also, the money in their account may be borrowed for short-term to obtain the assurance letter.
Large Deposit
This is a preferred option by many landlords and management companies as they are in control of the rental situation. The large funds are convenient in case of any shortfall in future payments. Instead of large deposits, the funds may be invested in an escrow account.
Guarantor
If the above options are not working out. An adult child of the retired person or a relative can give a guarantee for the rent payment and agree to pay the rent in case the tenant is not able to pay for the month. This can be a last resort as it can give rise to problems.
Conclusion
More number of retired people are opting for renting an apartment. Douglasville retirement communities are also a preferred option. The main hurdle in renting an apartment is being able to establish the proof of income to be able to pay the monthly rent without default. Various options are available as explained above.
