Following the impacts of the pandemic, freelancing and the gig economy are on the rise. A previous report by Upwork and the Freelancers Union estimated that there are now at least 57 million American freelancers. Despite this change over time, renting as a freelancer is still quite difficult. Many landlords still believe that as a freelancer your income is unstable, which doesn’t help rental applications. Here are some ways you can improve your prospects of renting as a freelancer.
Get Your Affairs in Order
It’s important to be prepared and have all the documents required to ensure an easy rental application. As a freelancer, you’ll need the standard paperwork required of any applicant and any additional paperwork that will make the case to a prospective landlord that you’ll pay your rent on time for the full duration of the lease.
In terms of standard paperwork, these are the basics:
- 2 years of tax returns
- 3 months of bank statements
- Last two pay stubs
- Copy of your photo ID
It also helps to have some of the following:
- At least two letters of recommendation from clients attesting to your integrity and the merit of your business.
- An official letter from your accountant outlining your projected income for the year.
- All client invoices from the past two years.
Go Through an Agent
Depending on your state and city, competitiveness for housing may vary greatly. It’s important to find the right agent who can accommodate your needs and understand your position as a freelancer. Having a real estate agent walk you through the rental application process can make it a lot easier.
When choosing your agent, ask if they have successfully had freelancing clients approved. It’s important that your agent has a strong network with landlords. An agent in this position will know which landlords are more flexible and on what grounds.
A real estate agent would be able to negotiate some of the following on your behalf:
- Offering to pay an additional security deposit
- Offering to pay additional rent upfront
- Using a guarantor
Use a Guarantor
Whilst we would only recommend this as a last resort, using a guarantor is also a great way to convince landlords that you’re trustworthy. Do note that your guarantor would need to have good credit and also pass affordability assessments. Ensure that you have a healthy and trustworthy relationship with your guarantor, as financial responsibility will fall onto them should you fail to pay your rent.
Have you ever wondered about how to save for a home when you’re renting, see our post here.