Good credit history is a requirement in different situations, including getting a loan, cell phone contracts as well as obtaining an apartment. If you lack a credit history, you can still get approved for an apartment in Malaysia in different ways. We will share some of the tips that you can use as you work on boosting your credit score for future purposes. Enjoy!
Try renting from an individual owner rather than a management company. Most of the apartment complexes under property managers need a credit check before approving tenants to rent. You may be lucky to find an individual owner who can rent without considering your credit rating. Ensure you rent an apartment that is within your budget even when the landlord offers a more expensive one. Try dividing your income among your needs, debt repayment, and savings to come up with a plan on how to cater to each category.
Offer to occupy the apartment immediately. When one or two houses remain vacant for a while, landlords suffer since they have to use their funds to pay for utilities and the mortgage without reimbursing from rental income. If you choose an apartment located in a place with low rental demand, you can save the landlord by moving in immediately. They may not be strict on your credit history in this case since their main concern is reducing such costs.
You should have a stable income that can cover the rent each month without fail. It is advisable that you spend less than a third of your income on rent. For instance, if you earn $ 3,000 each month, choose an apartment that is less than $ 1,000. The less you have to pay on rent, the more money you have for the rest of the expenses and savings. You may not have a stable income to cover monthly rent, but a high savings balance can also help when you are in between jobs.
You can also convince a landlord to allow you to rent without credit by offering to pay a few months upfront as your security deposit. This gives the landlord some peace of mind since they don’t run the risk of you not paying for the specified period. Ensure that the payment is documented so that you can ask for the refund upon expiry of the lease.
Screening tenants to occupy apartments is not an easy task for landlords. You can prove your character by offering the owner professional references from people who have worked with you in the past. It could be a teacher or your employer. Landlords assume that if you are a responsible employee, you can also be responsible with your funds.
Consider getting a cosigner who has a good credit rating to help you secure the apartment. This makes the cosigner responsible for settling the rent if you default on payments. Though they act as your backup, you should ensure you pay you the rent as promised to avoid jeopardizing personal relationships.