RESIDENT SELECTION CRITERIA
All individuals, regardless of their race, color, religion, sex, national origin, family status or handicaps are guaranteed the right to rent any property they can afford. The federal laws that guarantee this right are commonly referred to as the “Fair Housing Laws”. K&D maintains a policy of strict compliance with these Fair Housing Laws. Generally, residents are approved or denied based on six (6) areas: income, debt ratio, employment stability, and rental references credit history, and criminal background.

Revised 4/5/16 2.1

Age Requirements:

Applicants must be 18/21 years of age(Depending on the Community) to be a “Signer” and must demonstrate their ability to pay rent on time and meet the requirements of occupancy. Guarantors can be only used when Lease Signers are students and do not meet the financial requirements of the lease (Reserve Square ONLY). SeeGuarantor Agreement (0101B).

  • Married couples, couples with children, single parents, or roommates - One person must be 18/21 years or older and must qualify alone based upon total rental criteria, unless a guarantor is used.
  • All Co-Residents must be 18/21 years of age or older to be considered a “Signer”.
  • All individuals living in the suite must be listed on the lease as “Occupants”.
  • All occupants 18 years or older must complete the Applicant Acknowledgement and Authorization Form (0101A). This form must be signed by a Lease Signerauthorizing the occupant tolive in their suite. The background check needs to be run through OneSite. Refer to ScreeningSectionsin Chapter 1 Leasing Procedures.
  • Once the Criminal Background Check has been completed, the Property Manager will determine if the Occupant is authorized to occupy the suite.

Signer: Individual(s) legally responsible for all terms and conditions of the Rental Agreement.

Occupant: Approved resident responsible for all terms and conditions excluding rental payments.

2.2

Income RequirementS:

The Combined Gross Income for all residents named, as a “Signer” on the lease (and/or Guarantor if used), must equal at leastThree (3) Times the Monthly Rental Amount. (Exception for Seniors-Age 62 and older)

  • A Co-Resident will not be permitted to be removed from a lease if the remaining resident’s income and credit does not qualify alone. Refer toCo-Resident Release Form (1003).
  • The following sources of income, if verifiable, will be considered as acceptable sources included with regular employment:
  • Trust funds, Interest, Dividends, Rental Income, Alimony, Child support, Social Security, Disability, Pension, Retirement Funds, & Unemployment Income (Co-Applicant Only).
  • Use of Savings Accounts or Investment Accounts for monthly living expenses will be considered as an acceptable source of income. (Area Manager must authorize using this as acceptable income)
  • Residents may make rental payments in advance up to their current lease end date.
  • When verifying income using pay stubs if the proof is just a stub without the electronic check attached you MUST send an Employment Verification Form # 0232 to the Applicants Employer.

Below is an example of a pay stub where you MUST send an Employment Verification Form #0232 to the Employer

**Note:** Applications without the Employment Verification when submitting these types of pay stubs will NOT be approved. We need to be clear and consistent with these guidelines in order to be Fair Housing Compliant

2.3

Debt Ratio:

No more than 35 to 40% of Gross Income is acceptable. Consideration: If rent is 33% of income, current obligations cannot exceed 35% of your gross salary. Reasoning: 35% - debt, 33% - rent, 23% - taxes and 9% - living expenses equals 100% of gross income. (Exception for Seniors-Age 62 and older)

2.4

Employment Stability:

Length and type of employment is an important economic consideration in the approval process. How likely is this employment to continue? How easy is it to verify the employment? Has the applicant been employed for(at least)ayear or more? Was their previous job similar? Are they working at a better job now than their last job? The type of employment many times is an indication of how long the applicant is likely to be employed, and a further indication of the likely stability of the income stream.

  • A letter of employment is required for a new hire on company letterhead stating the position held, salary and start date.
  • Three of the most current pay stubs are required for verification of employment.
  • Annual tax forms including a 1099 Form will be requested for those who are self employed or those who work for gratuities.

2.5

Rental Reference/History:

The OneSite detailed screening report will show any previous judgments against an applicant by another management company. The OneSite detailed screening report will also show the dollar amount still owed and the status of the case against them (dismissed, etc).

2.6

Credit History:

Beforean application for occupancy is accepted, a credit inquiry is made. Applicants without credit history are not necessarily denied. However, without credit history, it is sometimes more difficult for applicants to demonstrate their ability to pay rent on time.

We carefully compare the information on the application to make sure that it matches the information on the Credit Report. If it does not match, you must inquire as to why it does not match.

The Credit History selection criteria includes:

  • Must show prompt payment within the past two years.
  • Any eviction placed for suit or judgement within the last sevenyears is a cause for denial.
  • Bankruptcy must be at least two (2) years prior and must be discharged or dismissed. With newly established credit.
  • Foreclosures – all selection criteria applies, investigate circumstances surrounding the foreclosure
  • Lower ratings on school loans and medical references may beacceptable in certain situations with proper explanation.
  • Applicants with a history of unpaid collections, judgements or liens are usually denied
  • Applicants with unexplained differences between the application and the Credit Report may be denied.
  • Current monthly total debts must still allow for adequate income to pay the rent.

***Any exception must be approved by your Area Manager.

***Half of a double security deposit may be applied to the first months rent on their new lease if they renew with us and have perfect pay history during their first year of residency.

Non-Traditional Credit

Applicants with no credit references may provide qualified credit references from utility companies and insurance companies. The applicant is responsible to contact these credit references and obtain copies of their payment history and current status.

Letters of Explanation:

An applicant may provide a letter of explanation and may qualify if a logical and acceptable reason can be provided to explain issues of credit such as divorce, disputed claim or counter suit, leave of absence for medical reasons, or a company lay-off.

2.7

Municipal Occupancy Codes:

All applications are further subject to municipal occupancy restrictions. In other words, family size cannot exceed City or County occupancy maximums. The maximum number of occupants per apartment varies from municipality and depends on the square footage and number of bedrooms in the perspective unit.

If there are no published restrictions, occupancy is limited to:

  • No more than 1 person for a Studio/Efficiency
  • No more than 2 persons for a One Bedroom
  • No more than 4 persons for a Two Bedroom
  • No more than 6 persons for a Three Bedroom

Any additional individuals residing in the suite for more than 14 days are considered to be occupants of the suite and must be screened through OneSite listed on the lease.

2.8

Criminal Background Reports:

Occupancy is further subject to criminal background checks. Criminal background checks will be evaluated on the following criteria:

  • No Violent Felonies involving the Death of or Injury to Another Person within 10 years of completion of all post-conviction court sanctions or restrictions.
  • No Other Felonies within five (5) years of completion of all post-conviction court sanctions or restrictions.
  • Any Drug Conviction for Manufacturing or Selling Drugs are excluded no matter the timeframe
  • Misdemeanors- No bodily harm within three (3) years of completion of all post-conviction court sanctions or restrictions.
  • Misdemeanors - No repeat offenses of similar or dissimilar nature within three (3) years of completion of all post-conviction court sanctions or restrictions.
  • Misdemeanors – no fraud or theft offenses within three (3) years of completion of all post-conviction court sanctions or restrictions
  • No Other drug offenses within three (3) yearsof completion of all post-conviction court sanctions or restrictions, Repeat offenses may be denied.

**Under no circumstances will a person be permitted into the Property who is a Registered Sexual Offender according to the National, State or Local Sex Offender Registry.

2.9

Security Deposit Requirements:

An applicant may be requested to pay a full deposit, a one and one-half (1 ½) month security deposit or a double security deposit in order to be accepted for residency.

If an applicant is requested to pay an additional one-half (1 ½) month security deposit or a double security deposit, this deposit may be used towards their thirteenth 13th month rental payment. Providing that the resident has paid all rental payments as agreed for the first twelve (12) months of residency and may not violate any terms of their lease agreement. The resident must request usage of their extra deposit as rent. The leasing consultant responsible for the renewal must obtain approval from the manager responsible for leasing who will make sure that the residents account is credited the proper amount.