By Property Management Systems
Over the last two years as the Real Estate market has heated up across the United States, the rental market has heated up as well, especially in Portland Oregon, where rents have doubled and tripled in some areas.
Although rents are higher, the good news is that thanks to a recent study by rentcafe.com we know that rental markets like Portland Oregon actually have higher approvals for renters than most other states.
Active Markets Have Higher Approval Rates
Over 90% of applications to rent apartments in Seattle, Portland, San Diego, Washington, DC, Los Angeles and San Francisco get approved. The 6 cities are very active and high-priced rental markets with thousands of new apartments to fill every year, being in the top 20 cities in the country with most apartment units completed in the last 2 years. Other cities hungry for tenants are Denver, Plano, TX, Philadelphia, Chicago, Austin, Miami, and Nashville, all of which have been seeing high rent increases and large numbers of newly opened apartments.
Number one on the list, Seattle, WA is a popular city for Millennials, with the highest share of Gen-Y rent applicants of all cities analyzed. 93.7% of rental applications in Seattle end up in a lease. Being one of the hottest and most active rental markets in the post-recession years, Seattle is among the top cities in the country for both construction of new apartments and rent growth. San Francisco and Irving, TX, both in the top for highest approval rates, also have very high percentages of Millennial rental applicants, about 74.5% each. Second on the list of cities with highest application approval rates, with 91.1%, Portland, OR is also a Millennial city, with 71% of renter applicants from Generation Y, as well as one of the fastest growing rental markets in the U.S. in recent years.
Slower Growth Markets Are Harder to Find Rentals
Sadly, cities like Arlington TX, Scottsdale AZ and Detroit MI have been found to be harder to rent in because these cities have a limited supply of apartments and rental properties compared to cities with fast growing rental markets like Seattle WA and Portland Oregon.
The city that officially wins the recognition as the most expensive to live in in the United States is also one of the most competitive places to rent a home and that city is Manhattan, NY. In this city, they have the seventh highest rejection rate in the country thanks to their large, diverse rental population and short supply of rentals.
In Manhattan, it’s not uncommon for renters to settle for studio apartments that are about the size of a small closet because they like the recognition of living in one of the most well-known cities in the United States even though are paying more money to live there.
What Are Landlords Looking for When Screening Renters?
Thanks to the rentcafe.com study we know that most landlords aren’t just looking at credit scores anymore, they are looking beyond the credit score to find great tenants.
Surprisingly, in only 8% of cases was a low credit score the main reason for rejection. Even though defaults, charge-offs, judgments and the like all contribute to the overall credit score, the bottom line is that landlords often look beyond the number that is the credit score. They look at the applicants’ track record of payments and debts incurred as indicators whether a person will be a good player. However, aside from all other reasons, your chances of approval do increase proportionally with your credit score. For instance, only 48% of applicants with a credit score below 500 are approved, but 98% of applicants with scores above 750 are successful.
Search for Rentals in Portland Oregon
To search for rentals in Portland Oregon, or to speak with us about our property management services, contact Property Management Systems today by calling us at (503) 515-3170 or click here to connect with us online.