Credit analysis for leasing: our tips to help you get through it without any surprises!

The first point – credit analysis should not be a cause for apprehension or distrust. In general, it is a very simple and rational process.

There are 2 main criteria analyzed:

1) Does this person usually pay what he/she owes?

2) Is the rent price compatible with her income?

Let's delve deeper into each of these points!

1- To pass the credit analysis for leasing: be a good payer

To find out whether or not the interested party is a good payer, a debt survey will be carried out.

The Serasa or Boa Vista portals are usually the most accessed for credit analysis

They will indicate 2 things – (i) a credit score, that is, the rating that the platform gives you as a good payer and (ii) existing debts in your name.

These two indexes have different weights in a credit analysis for leasing.

Generally, if there are outstanding debts this ends up being a determining factor, so it is always worth checking your CPF status on the Serasa website – it's free!

I, for example, was once in debt because I didn't pay a bill (which I didn't receive) for R$27.00...lol.

These cases are super easy to resolve. Negotiate and pay off the debt and that's it.

Now, if there is a larger outstanding amount, each owner will deal with it in a different way.

We here at Citas believe that what matters most is the profile – if there is a pending payment on the Renner card from 2017, it probably doesn't mean that the person is a bad payer and we often approve...

now 3 or 4 pending issues in the last 2 or 3 years....it's getting more difficult.

Credit Score is much more difficult to resolve.

As it is a guess from the platform about how good a payer you are, people who still don't pay many bills often have a low score, even without any outstanding debts.

For example – if you still live with your parents and don’t have any accounts in your name, the platform can’t create a profile and often ends up lowering your score.

Or if you are careless and out of the 200 bills you pay per month you forgot and only paid one late, this also significantly affects your grade.

There are people who take their credit score very seriously and there are people (us) who understand that there are many flaws in the process and end up completely ignoring this number.

2 – Magic 3x rule

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While credit analysis can be subjective, income analysis is often quite straightforward.

Does the prospective tenant earn enough to pay this rent?

To answer this question, owners generally consider that it is healthy to not spend more than 30% of your income on housing.

After all – besides living, you need to eat, have fun, etc.

The problem with this rule is that for those who earn less, 1 or 2 minimum wages for example, housing will end up compromising more than 30% because it is possible that the person will give up leisure or even quality food to pay the rent.

Is it ideal? It's not. But is it possible to live in SP with 1/3 of the minimum wage?

No, it doesn't.

And how to resolve these cases?

Compose income!

If you have a family member, friend, boyfriend/girlfriend who is willing to be in the contract with you, the landlord can analyze the income of both of you and the joint income!

But be careful!

This person ends up being responsible for the payment together with you!

That is, if you don't pay, you can (and will) be sued. So don't lose friends for nothing and only start earning money if you're sure you'll be able to pay the rent, okay?

And if you don't have a pay stub, how do you prove your income?

Simple!

You will be asked for a bank statement from the last 3 months to prove that the declared income is real – which is a solution for self-employed workers.

Another way is to present the Income Tax from the previous year with the declared income!

Wow, I have everything in order and I still didn't pass the credit analysis! Hmmmm... there's another problem called being human, bias and prejudice.

Unfortunately, the rental market is still very unprofessional and generally, the person on the other side doing this analysis may not be very prepared and may have some analytical flaws.

What should be objective and rational becomes a Russian roulette that can cause a lot of discomfort.

In a better world in the future, I hope you have many options for serious and professional companies and can go through this process calmly and without any embarrassment!

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Want to know more about renting in general? Visit our blog or how about getting to know our apartments ?

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