Eligible Tenant Requirements for Sovereign Realty & Management
Thank you for your interest in renting with Sovereign Realty & Management. This page explains the criteria used in determining whether an applicant will qualify to rent with Sovereign Realty & Management.
APPLICATION DOES NOT CREATE A LEASE. This application, even if accepted, shall under no circumstances be considered a lease agreement between Applicant and Landlord, or an offer to lease. No lease shall exist between Applicant and Landlord unless and until the parties enter into a formal Lease Agreement and Applicant pays all required fees, deposits and advance rent. Application fees are non-refundable so please review the criteria below.
AUTHORIZATION TO DO CREDIT AND BACKGROUND CHECK. Submitting an application, authorizing Sovereign Realty & Management LLC to verify your background, rental history and credit report from all reporting agencies.
INCOME: Gross income must be three times (3x) the monthly rental rate. Ratios: Rent-to-income ratio (RTT) may not be more than 33% of Guarantor(s) total gross monthly income.
- Employment – If the applicant is employed, the applicant must provide previous consecutive 2 month’s pay stubs. If applicant is to begin work shortly, the applicant must provide a “letter of intent” to hire from the employer.
- Self-Employment, Retired or Unemployed – Such applicants must provide the previous year’s income tax return and the previous two month’s bank statements, or twelve months of financial statements and must exhibit no negative references. Seasonal employment must be verified by providing the prior year’s tax return.
- Housing Choice Voucher Income Exception – If the housing Tenant has a split, the underwriter will verify income and recommend maximum rent they qualify for using the (3x) the monthly rent rate just for the Tenant portion.
- Guarantors – Guarantors will be accepted for applicants who do not meet the required rent-to-income ratio or denied on credit. Only one guarantor per house is permissible. For guarantor supported applications, an additional deposit will be required. The deposit level will be based on the credit analysis. The guarantor will be required to complete an application and pay a full application fee. Guarantors must have a gross monthly income of 5 times the monthly market rent and meet all other qualifying criteria identified in this screening policy. The guarantor will be required to sign the lease as a Leaseholder. Guarantors may be relatives or an employer; friends may not serve as a Guarantor.
CREDIT: Market Rate Applicants with a credit FICO score of 600 or better, qualify with Base Deposit of one month’s rent. If the applicant’s score is between 599- 560, the applicant is considered “High Risk” and will be required to provide an additional ½ month deposit (1.5 times rent Deposit). If the applicant’s score is between 559-540, the applicant is considered Higher Risk” and the required deposit will be an additional month’s rent (2 times rent Deposit) Applicants with a credit score below 540 do not qualify for market rentals. Subsidized Applicants must have a credit score above 540 and must pay a one month’s rent deposit (1 times rent Deposit). Prior tenants of Sovereign with a positive payment may be given special consideration.
BASE DEPOSIT: Base Deposit for all Tenants is equal to One Full Month’s Rent. An additional deposit may be required for a credit score below our minimum standards.
PET FEE: Pets may be approved for certain properties after review, and with the addition of a Pet Exhibit/Addendum to the lease. For approved pets, Sovereign charges a non-refundable pet fee of $350 for each approved pet. When pets are approved, there is a maximum limit of two (2) domestic animals per household. Domestic animals include cats, dogs and small caged animals. Any pet considered to be of a violent breed such as Pit Bulls or any pet with a history of violent behavior, may be prohibited. Please note that the Underwriter may request documentation from a veterinarian to confirm non-violent breed/history.
EVICTIONS: Applicant(s) with eviction(s) having occurred within past 3 years will be denied. Applicant(s) with eviction(s) having occurred greater than 3 years and up to 5 years , will be required provide an additional ½ month deposit. Applicants with eviction(s) greater than 5 years may qualify with Base Deposit. Applicants with a credit score above 600, and have fully satisfied the debt from an eviction in the past 3 years may qualify with base deposit.
RENT COLLECTIONS: Applicants with rental collections on their credit report must provide documentation to support the account has been paid in full prior to the date of application. If proof of the rental collection cannot be provided, the application will be denied.
BANKRUPTCY: Applicant(s) with open Bankruptcy are ineligible (Chapter 13 must be dismissed; Chapter 7 must be discharged).
LIENS/JUDGEMENTS: Applicants with open Tax Liens or Civil Judgments must either provide proof of satisfaction or that they are currently in compliance with a written payment arrangement.
CRIMINAL HISTORY: All Residents over age 18 must consent to a criminal history verification, which must indicate no felony convictions and no sexual offenses, including misdemeanors of a sexual nature. Applicants with the following criminal history will be denied: (a) felony conviction within the past 10 years, (b) registered as a sex offender or (c) multiple misdemeanor convictions within the last two years.
OCCUPANCY GUIDELINES: The following occupancy standards apply based on 2 persons per bedroom, plus one per home (One Bedroom Three Persons, Two Bedroom Five Persons, Three Bedroom Seven Persons, Four Bedroom Nine Persons, Five Bedroom Eleven Persons). Residents who exceed these occupancy standards during the lease term will be required, upon the end of the current lease term, to either: i. Transfer into another available home which has more bedrooms; or ii. Move out. Rent for the new home will be at the rental rate at the time the lease is entered into for the new home. Must be 18 years of age to qualify to rent a Sovereign managed property.
RENTERS INSURANCE: Renters insurance is required for each home prior to taking occupancy of the home. Proof of Insurance will be required prior to scheduling the move in.
COMMITMENT TO EQUAL HOUSING: Landlord and Landlord’s agents are committed to providing equal housing opportunities to all rental applicants regardless of race, color, religion, national origin, sex, handicap, familial status, or other protected status. Sovereign Realty & Management welcomes qualified Housing Choice Voucher holders who have been approved for the Housing Choice Voucher program by the local housing authority.