3 renter profiles landlords struggle to approve and how to handle them

If you own a few rental units, you’ve probably been here before: You meet a renter. They seem responsible. They like the apartment. You’d like to move forward.

But something on paper doesn’t quite work. In today’s market, that’s happening more often.

Many renters aren’t falling short because they’re irresponsible, but because they’re running into a combination of rising rents and strict screening thresholds. Nearly half of renters today are considered cost-burdened, meaning a large portion of their income is already going toward housing.

So instead of seeing applicants who check every single box, independent landlords are increasingly seeing renters who are close, but not quite there.

From our experience working directly with landlords, most of these applicants fall into three groups. The key isn’t lowering your standards, it's understanding what each situation is really telling you to ensure you are equipped with the risk protection you need.

1. Meet John: Steady job, but just under your credit cutoff

John works full-time. He’s been with the same company for five years and has a steady paycheck. But his credit score is 615 and your cutoff is 650.

Now you’re stuck. This is the most common scenario we see independent landlords run into.

A common FICO score runs from 300 to 850, and “good” credit generally starts at 670. According to Experian, the average U.S. credit score was 713 in 2025, but 14.7% of consumers were in the poor range and 14.9% were in the fair range. That means a significant share of consumers fall below that “good” threshold of 670.

Credit scores often don’t tell the full story. In fact, many renters who consistently pay rent on time don’t see those payments reflected in their credit report. As a result, someone like John might look borderline on paper, even if their real-world behavior tells a different story.

For small landlords, this doesn’t mean ignoring credit. But it does mean a missed credit threshold should be a reason to look closer; it’s not always a dealbreaker. 

2. Meet Maria: Close on credit and income, but not quite there

Maria applies next. She has a stable job, but her income is a bit tight. Her credit score is also below your usual range. Now you’re looking at a profile that misses on both credit and income.

This is the toughest profile on paper. At first glance, this can feel like too much risk to take on and sometimes, it is. But it’s also important to understand why this is becoming more common. 

Over the past few years, rent has risen faster than income in dozens of markets and more renters are stretching to afford housing. So when you see an applicant who’s short on both credit and income, you’re often looking at the reality of today’s market, not necessarily a renter who isn’t going to pay their rent on time.

As a landlord, this is where decisions get toughest: Do you pass entirely or is there a safe way to move forward?

3. Meet Miguel: Self-employed, but income falls just short

Then there’s Miguel. He has good credit and a clean payment history. But he works as a freelancer and doesn’t have traditional W-2 pay stubs. When you look at his application, his income comes in just under your 3x rent requirement. 

Now you’re unsure. This is another very common situation, especially today.

The 3x rent rule is widely used, but it’s still just a guideline. And in today’s market, many responsible renters fall just short of it. That’s especially true for self-employed applicants.

Freelancers and independent workers can be high earners, but their income often looks inconsistent on paper. Without standard pay stubs, it can be harder to verify and easier to underestimate.

As a result, renters like Miguel may appear riskier than they actually are. But in many cases, the application isn’t weak, it’s just less straightforward.

What this means for independent landlords

Across all three of these scenarios, one thing is clear: The challenge today isn’t always finding applicants, it’s also figuring out how to confidently say yes to more of the right ones.

A lot of renters won’t check every box perfectly. But many are still responsible, qualified people who fall just outside traditional criteria.

So the real question becomes: How do you protect yourself without turning away too many good renters?

A way to move forward with more confidence

That’s where solutions like TheGuarantors can help. Instead of lowering your standards, our Lease Guarantee is designed to help you move forward with these types of applicants.

For independent landlords, it’s simple. When you need extra reassurance before you sign the lease:

• You invite the renter to apply for a Lease Guarantee with TheGuarantors

• If approved, the renter pays the cost which helps get them in the door 

• You get protection against renter defaults and more 

Now, instead of declining applicants that you’re unsure about, you have another option that helps reduce risk of lost rent while keeping your units filled. 

Closing thoughts

The goal isn’t to approve every borderline application. It’s to understand which “misses” are common, which are manageable, and when you need additional protection.

In today’s rental market, the difference between a vacant unit and a reliable tenant often comes down to how you handle the renters who are just a little outside the box.