(617) 308-5966

I placed this discussusion first and foremost ---as it is in my experience, the most misunderstood, when I meet applicants.

All FEES are generated by and within the legal discretion of the owners and property managers that are listing a given unit for rent with an agent.  Brokers and their agents can only advise on current market values and upcoming trends.  In the State of Massachusetts, an owner can collect one or all three of the following payments from a tenant + plus passing on their broker fees to the tenant as fourth payment.

1.  FIRST MONTH OF LEASE TERM
2.  LAST MONTH OF LEASE TERM
3.  SECURITY DEPOSIT (Equal to But Not Exceeding Monthly Rent)
Next in addition of collecting the above payments, the owner/property manager may also pass on their "broker fee" to the tenant.
4.  BROKER FEE:  A broker fee is a fee owed to the office of the owner's agent and the renter's agent.  The owner's agent represents the owner's interest, while the renter's agent represents the applicant's interest.  The fee can not exceed the value of one month's rent split between two offices.  In the event the renter applies through the listing agent directly - the fee is owed to the owner's agent entirely.  It is the fiduciary duty of all agents to act fairly and this fee covers their witnessing and keeping a record of your lease for 3 years past transaction. It's in my experience however, that it's best to have your interest be recorded with your own representation regardless of renting or buying.

Usually this fee is covered by the owner entirely, however it may be passed on to the tenant in contested areas as Cambridge and Boston.  In such a case the tenant must sign a Broker Fee Agreement that clarifies the exact fee which is not to exceed one month of agreed upon rental.  Broker Fee and all Fees can only be collected upon approval and signing of given lease.

In conclusion, please anticipate to have four payments ready before applying for a rental in Cambridge or Boston to cover everything.  With this said, there are different fees collected from each owner, so if you like a particular listing? Please call and/or email me and I'll get back to you asap with full disclosure on all fees required from those owners.  (617) 308-5966

Setrakian Realty Co. DOES NOT CHARGE FEES for applications nor credit checks.  All the best with your search!

It's good to know and understand what you are getting into and most of all how much can you afford to pay for rent every month.  While housing looks dismal at this time, the good news, as you will see on market, is that there are ever increasing options in variable affordability and regardless of what has been termed as "the Boston housing crisis".  You just have to know where to look and assess how much are you willing to compromise to make it happen.

A good place to start is to know What Owners & Property Managers are Looking for in an applicant:

A.  Can they afford it? Calculate affordability with the 60/40 Income vs Debt Ratio
The 60/40 rule is one of the rules used by owners and property managers to vet applications for credibility.  This ratio typically weighs affordability - in almost all finance decisions, but for the sake of rentals-- it means that all your debts (credit/auto/insurance), subscriptions, utilities per month + rent should equal to 60% of your income with 40% remaining for urgent expenditures and/or savings.

B.  Is a Guarantor Needed?
If the answer to (A) above is NO? A guarantor can step up -- providing they fill out an application.  If the guarantor earns enough income, they will be able to support the applicant on their lease.

C.  What's their Credit? Credit Scores and How they can affect Rental Applicants
Credit scores are measuring tools that financial institutions use to extend you credit or determine an interest rate on your loan. Lenders may look for a FICO score higher than at least 650 to consider lending.  Similarly owners look for arrears or default in payments and hope for at least 650 in FICO score.  Under 600 maybe a cause for denial.  Simply put:  Paying all creditors on time will determine your credit score and reveal to Owners & Property Managers how responsible you are with regulated payments.  You can get immediate answers to what's your FICO score through all the credit agencies: Transunion, Equifax & Experian.  FREE online services such as CreditKarma.com or Experian.com will instantly reveal your scores.

If you have no credit score? - this may not be the worst thing nor is it a deal breaker.  Given most owners and property managers will allow a guarantor to sign an applicant on, the applicant can secure the lease and perhaps consider building credit.  Super easy and you can call us to discuss.

D.  Crime & Incarceration History
Any crime -even petty crime that may come up in a CORI check can be valid reason for app denial.  This is a jurisdiction held by owners - particularly ones that live on site.  Thankfully there are efforts now through second chance housing programs in Massachusetts.  Please check the following links from Mass.gov for additional info and resources:  https://www.mass.gov/info-details/reentry-planning

*Please note that its the combination of all the above factors that will determine the final decision and not any single one of them by itself.

Now that you know what it takes, you are ready to search, search search!
Once you've established your budget begin by digging in the market.  Check Basic, Advanced or MapSearch  The carousel here displays lowest to highest in Cambridge, Boston & Area.  You can also join our site for FREE and save custom advanced searches in your area.

While you pay attention to location and transport, please also know that you can call us directly, tell us what you are looking for exactly and may just have a new office listing that fits.  Have Fun!

Application
The application process is very straightforward:  Upon deciding on a given unit,  your agent will automate a GBREB (Greater Boston Real Estate Board) application via secure Docusign to your email to collect sensitive information such as current address, landlord, employer, income & social security.  Once submitted copies are sent to both the agent and applicant.

Additional Documents
Owners will require the following documents in addition to the application above:
A.  Driver's License and/or Passport ID.
B.  Minimum 2 weeks of paystubs and/or Job Offer Letter from potential employer.
C.  Credit Check -  Setrakian Realty will run this and bundle with your application at no charge as well as send a copy to applicant.  All financial discussions are confidential.
D.  CORI CHECK?  This is not always required, however some buildings and owners may also require a Criminal Background Check to be submitted.

All the above documents will be bundled to the representing agent, management office or owner directly.

It never feels bad to get a call/text message saying:  Your Application is Approved! Congratulations.
At Setrakian Realty Co. we work hard to crunch the math to make this happen.
Get the mover's ready as this will be the only challenging task left! Not really, but you should call the movers asap and ask your renter's agent to arrange a time with the current tenants to have things go smoothly on moving day.

Next, if the owner requested to collect a security deposit? They will be revealing the escrow account upon signing the lease. They will also follow up with a walk through to determine what needs to be fixed, not fixed and/or what is normal wear and tear/not.

Once all signatures are submitted to accept the offer, all requested fees are due immediately to secure the lease.

Finito.  Call back the movers 2 weeks before move-in to confirm and you're good to go!
We will always stand by all tenants that we approve and I am always available to advise further in person and by appointment.  Feel free to reach out with a call or text.

Garabed Setrakian
(617) 308-5966