I got an apartment post -FIRE

[kaizen soze]

One thing I have been worried about regarding being FIREd was getting an apartment. Would landlords balk at renting to someone without job income? I've also been traveling for 18 months, so I have no recent rental history, further complicating my situation. One property management company did throw up some resistance when I contacted them about an apartment listing. She wondered if I was disabled, and generally treated me with heavy suspicion. She suggested that she'd only consider me if I were willing to pay all 12 months up-front.

So I decided to do what i could to put my best foot forward when contacting landlords. I made a rental resume and prepared to provide evidence of my solid financial situation. I lined up three references including a former landlord. I contacted a property manager who I know in a different market for advice. (His advice: just be up-front about your situation and offer to pay some months of rent up-front and that I shouldn't expect to pay higher rent). I worked out what I would say when calling about a listing. I dressed in business casual when touring apartments. I even trimmed my beard.

And it seems to have worked! I'm signing a lease tomorrow. They haven't asked for anything more than first month's rent and a security deposit. I'm unreasonably excited about renting a modest apartment in a new city.

[kpd905]

What were you ready to show as evidence of your solid financial situation?

[kaizen soze]

What were you ready to show as evidence of your solid financial situation?

Bank statements with account numbers blacked out. I didn't show them every cent, just enough to let them know I had funds to pay rent.

[Linea_Norway]

Open to hearing others experiences and advice beyond showing them your bank account and/or offering to pay cash upfront for the whole lease.

Paying upfront for the whole lease seems unreasonable. But paying a 3-4 month deposit would sound reasonable. They should be able to find a new renter in a few months if you don't pay.

Could you put a deposit in one of your own bank accounts for this purpose, that needs to be there at all times?

[kaizen soze]

I'm glad to hear this worked out for you OP. I'm in your situation in that Ill be looking at renting soon and am afraid I'll have trouble due to being retired and living off savings plus a small pension/VA benefit. Wary about paying 6 months or more upfront but not sure how much choice I'll have. Throw in a dog and that I have no rental history (owned paid off house for long time) and not sure I'm tenant material. Open to hearing others experiences and advice beyond showing them your bank account and/or offering to pay cash upfront for the whole lease.

To be clear, the property manager who I know told me that 6 months rent prepaid is the most that he would think should ever be necessary. It was just the very suspicious landlady I first spoke to who suggested paying 12 months all at once, and I didn't rent from her. 

Like you, I worried that I'd look like a poor candidate. I hadn't rented in over 10 years. But when I sat down and thought about it, I figured I could make myself look pretty good.  Think of it a little like applying for a job. You may not be the conventional candidate but that doesn't mean you're a bad one. You might be surprised at how much more attractive you will be as a renter than many who others who apply.

If you don't want to show a bank statement, maybe have your lawyer, accountant, or financial advisor write a letter vouching for your ability to pay (assuming you have one of those). I'm just spitballling here.

[EricL]

I'm glad to hear this worked out for you OP. I'm in your situation in that Ill be looking at renting soon and am afraid I'll have trouble due to being retired and living off savings plus a small pension/VA benefit. Wary about paying 6 months or more upfront but not sure how much choice I'll have. Throw in a dog and that I have no rental history (owned paid off house for long time) and not sure I'm tenant material. Open to hearing others experiences and advice beyond showing them your bank account and/or offering to pay cash upfront for the whole lease.

I’m somewhat surprised.  I’m a military retiree and proof  of my pension easily secured my landlord’s trust.  It’s a lot more dependable than a job paycheck when you think about it.

[Nords]

Well I just rented a short term place today (for 3 months) with no problem. But then it was an off season vacation rental so not a regular lease but it should help prove I'm not a crazy gangster with an illegal money stash to future landlords. Or maybe they wouldn't care ;-).

You might already be aware of this, but you could show proof of income from the VA with an eBenefits printout and proof of pension with DFAS' verification letter.

https://www.ebenefits.va.gov/ebenefits/manage/documents
https://www.dfas.mil/retiredmilitary/manage/payverification.html

They're probably easily forged, of course, but if a landlord can't work with those (and perhaps the usual Cozy or TransUnion credit check) then you don't want to be their tenant anyway.

I get this question all. the. time. from servicemembers who are separating or retiring.  Because the transition just isn't stressful enough without moving to a new location... and for extra bonus stress points, trying to decide whether to buy the mythical "forever home".

[FIFoFum]

I recently had to deal with this, and it's something I worry about for the future. I found it helpful to get a letter from the financial planner/firm that I rely on to help with my asset allocation and planning (they are MMM/FIRE friendly and know what I'm doing). I suspect you could do this with anyone who has knowledge of your finances (planner, CPA, etc.).

It's typical here for rental applications to request proof of income that is 3x (or 2.5x) rent. So I had an official looking letter from the firm/planner that said I had sufficient assets/monthly withdrawal to support $X per month (something like the equivalent of 3x of rent). For some reason, that made the management company happier than just statements of money in a bank. Probably because it was from a third party and because it makes me seem like a trust-fund dude choosing not to work, rather than someone unemployed/underemployed struggling to make ends meet.

The fact that I didn't actually plan that type of withdrawal didn't matter. It's a one year lease. Who cares if I'm actually withdrawing that amount in FIRE and running out of money in 30 years instead of not withdrawing that amount right now in case I live for 50+ more years.

I wish it was cheaper/easier to set up putting the rent money in an escrow account. I think it solves the issue they have - that you aren't good for the rent - while maintaining the leverage you have in case the landlord doesn't fulfill their obligations to you.

[Shane]

@kaizen soze, Did the landlord ask to contact any of your references? see your bank statements? We'll soon be in a similar situation: returning to the US after ~18 months of overseas travel and looking to rent a small house or apartment. We haven't rented a place to live in the US in over 20 years, and I'm pretty sure our last landlord is long dead by now. If possible, I'd prefer not to show potential landlords our brokerage statements, but since we tend to only keep about 1% of savings in cash, I'm a little concerned that might not be enough to convince someone we can afford to pay $1500/month for a year. I'm hoping potential US landlords will have Airbnb accounts, as we have many great recent references for short term rentals all over the world on Airbnb...