In the state of New Jersey, the Tenant has many legally protected provisions, but there are not many legally defined guidelines for lease eligibility. As a result, lease eligibility varies widely based on the landlord. Thus, it is essential that the tenant have a good credit score and appropriate proof of tax-reported income. In general, the tenant should have a minimum credit score of 680, and a credit score of 720 or higher is considered good. Some landlords not only require a high credit score, but will also carefully review the tenant’s credit history. Typically, the landlord will require an income ratio of 3:1, and this acts as a rough guideline for how much the tenant’s income must be in relation to the monthly rent. This, however, is also not a set rule and will depend on the landlord.
Rent to Income Ratio
| Monthly Rent | Yearly Income |
|---|---|
| $1,500 | $54,000 |
| $2,000 | $72,000 |
| $2,500 | $90,000 |
| $3,000 | $108,000 |
| $3,500 | $126,000 |
| $4,000 | $144,000 |
| $5,000 | $180,000 |
Key Considerations for Renting a Home
- Rent Price
- Reputation of town
- Reputation of a school district
- Type of home – Single family, two family, condo, etc.
- Number of bedrooms and bathrooms
- Parking
- Laundry (Washer/Dryer)
- Pets
- Move-in date
- Terms and Conditions – Utilities, Lease Terms, tenant responsibility (landscaping and snow removal), backyard usage, etc.
Rental Documents
- Rent Application
- Tax Return
- Current Pay Stubs
- Credit Report or NTN Report
- Photo ID (All Lease Signers)
Supplementary Documents (when needed)
- Co-signer
- Letter of recommendation from past/current landlord
- Proof of funds from the bank
Process for Lease
- The lease agreement must be be thoroughly reviewed and signed
- At the lease signing, payments should be made via certified checks:
- 1.5 month security deposit
- 1 month rent (first month)
- 1 month broker fee
- Complete the W-9 form.
- Submit a Change-of-Address form to the post office.
- Set up utility accounts.
- Obtain tenant insurance before moving in
- Conduct a final walkthrough.
- Move in (For condos, ensure move-in documents are submitted in advance).
Condo/Townhouse Rent
- Must submit all documentation required by the management office prior to moving in
- The move-in date must be agreed upon with the management office
- A Moving company must submit a Certificate of Insurance
- There may be a move-in fee (typically $300-$600)
- There may be a refundable deposit (typically $500-$1,000)
Utilities Contact Information
Electricity & Gas
PSE&G
800-436-7734
www.pseg.com
Electricity (Part of Northern NJ)
Orange & Rockland
877-434-4100
www.oru.com
Water
Veolia Water
800-422-5987
mywater.veolia.us
