Not every rental applicant will come with a strong rental history. First-time renters, such as students, recent graduates, or individuals relocating from owner-occupied homes, often apply without prior landlord references. As a landlord, it’s natural to feel hesitant about renting to someone with no track record, but these applicants can still become excellent tenants when screened properly. The key is to have a process in place that evaluates their potential while minimizing risk to your property and business.
Why First-Time Renters Have No Rental History
Applicants with no rental history are not necessarily unqualified. They may be young adults moving out for the first time, recent college graduates, people relocating from a family home, or homeowners transitioning to renting after a sale or financial change. Others may come from cultures or countries where homeownership is more common than renting.
Common reasons for no rental history include:
- Recent high school or college graduation
- Living with parents or relatives
- Owning a home until recently
- Relocating from another country
- Military or job assignments that included housing
Rather than automatically rejecting these applicants, landlords can look for alternative signs of financial responsibility and stability.
Use Consistent Screening Criteria
Even if someone lacks a rental history, they must still meet your core screening requirements. A consistent screening process ensures fair treatment of all applicants and protects you from claims of discrimination. Make sure you have written standards in place and apply them equally to everyone.
Basic screening criteria should include:
- Sufficient income (typically 2.5x–3x the monthly rent)
- Acceptable credit score or financial history
- Clean background check
- Verifiable employment or source of income
- No history of evictions or unpaid judgments (if available)
When a rental history isn’t available, focus more on other criteria that indicate whether the applicant can and will fulfill their lease obligations.
Request a Co-Signer or Guarantor
For first-time renters who otherwise meet your standards but lack a rental history, requiring a co-signer or guarantor can offer a layer of protection. A co-signer agrees to take financial responsibility for the lease if the tenant defaults.
Ideal co-signer requirements include:
- Strong credit (typically 700+)
- Reliable income (4–5x the monthly rent)
- Willingness to sign a co-signer or guarantor agreement
- Understands their legal obligations if the tenant fails to pay
Using a co-signer helps mitigate risk without turning away a potentially great tenant. It also encourages accountability on the part of the renter.
Ask for Alternative References
When landlord references aren’t available, consider asking for alternative references that demonstrate responsibility and reliability. This can help you understand the applicant’s character and ability to follow rules and pay obligations on time.
Acceptable alternative references may include:
- Employer or supervisor
- Academic advisor or professor
- Volunteer coordinator
- Roommates or neighbors (in limited situations)
- Family member (with caution and clear context)
Ask questions about punctuality, financial reliability, and general behavior. While not as strong as rental references, these insights can help paint a fuller picture.
Evaluate Employment and Income Carefully
For applicants without rental history, their financial stability becomes even more critical. Make sure their employment and income are clearly documented and meet your minimum requirements.
Documentation to request:
- Recent pay stubs (at least two)
- Offer letter for a new job with salary details
- Bank statements showing regular income or savings
- Tax returns for freelancers or self-employed applicants
If their income is slightly below your standards, you may ask for additional documentation or offer a shorter lease term until a longer track record is established.
Consider a Higher Security Deposit or Prepaid Rent
When allowed by state and local laws, landlords may request a higher security deposit or additional prepaid rent to offset the risk of renting to someone without a rental history. This strategy should be used consistently and documented clearly in the lease.
Options include:
- Maximum legal security deposit (e.g., two months’ rent in California for unfurnished units)
- Prepaid last month’s rent
- Shorter lease term with an option to extend after review
- Monthly financial check-ins for the first few months
These steps can provide peace of mind while giving the tenant time to build a positive rental record.
Use an Interview or Rental Application Addendum
In some cases, a conversation or written explanation from the applicant can provide context that isn’t visible on a credit report or background check. Ask them to explain why they have no rental history and what steps they’ve taken to prepare for renting responsibly.
Ask questions like:
- Have you ever shared expenses or lived independently in another setting?
- How do you plan to budget for rent and bills?
- What challenges do you expect as a first-time renter, and how will you manage them?
- Have you reviewed the lease agreement and rules of the property?
This informal interview or addendum can reveal the applicant’s mindset and maturity level.
Don’t Discriminate Based on Age or Assumptions
It’s important to remember that age is a protected class under fair housing law in California. You cannot reject an applicant solely because they’re young or inexperienced. Similarly, making assumptions about someone’s reliability based on lack of rental history can lead to unintentional discrimination.
To stay compliant:
- Apply your screening criteria to all applicants equally
- Focus on objective evidence (income, credit, references)
- Offer the same opportunities for co-signers or additional deposits
- Document all decisions and communications
A well-defined process helps ensure your actions are lawful and justified.
Renting to tenants with no rental history or first-time renters doesn’t have to mean taking unnecessary risks. With the right screening strategies, clear communication, and flexible solutions like co-signers or alternative references, landlords can find responsible tenants and fill vacancies efficiently.