What to Do When Your Lease is Signed but Your Application is Denied

If you have signed a lease but your rental application has been rejected, you are generally not eligible to move in. This is because the lease is conditioned on your application being accepted. Let's explore the step-by-step process you can take to resolve this situation.

Review the Lease

The first step is to carefully review the lease agreement. Look for any clauses that specify what happens if your application is denied. These clauses can provide valuable insight into the landlord's expectations and help you understand the next steps you should take.

Contact the Landlord or Property Manager

It's important to discuss the situation with the landlord or property manager. They can provide you with details on why your application was denied and offer suggestions for how to proceed. At this stage, you may find out that there is a chance to resolve the issues that led to the denial.

Appeal the Decision

If you believe the denial was unjustified, inquire about the process for appealing or reapplying. Some landlords may have procedures in place to allow rejected applicants to reapply under certain circumstances.

Look for Alternatives

If your situation cannot be resolved, you should start looking for other rental options. This can be a challenging process, but it's better to find a suitable alternative than to wait indefinitely.

Key Considerations

Understanding the reasons behind the denial is crucial. If you were denied due to an eviction or felony record, it is highly unlikely that you will be allowed to move in under any circumstances. Your co-applicant being approved with conditions does not automatically mean you can move in, as it depends on the specific reasons for the initial denial and the landlord's policies.

Lease Agreement Basics

A signed lease indicates that both parties have agreed to the terms. No lease can be signed if the application was denied. The application process includes screening such as credit checks, income verification, and background checks to determine if the landlord wants to proceed with the rental agreement. If the landlord is satisfied, they will provide a lease agreement for you to read carefully and sign. Failing to sign the lease means you do not have a legally binding agreement in place.

Security Deposit and Escrow

Once you and the landlord sign the lease, you are expected to pay security deposits and first and last months' rent. In some jurisdictions, only one and a half months' rent plus security deposit is required. The security deposit must be held in an escrow account and returned to you when you move out, provided there are no issues with the property.

Communication is Key

Maintaining open lines of communication with the landlord is essential. By discussing the reasons for the denial and exploring potential solutions, you can improve your chances of finding a resolution or an alternative solution.