How Easy is it to Rent With Big Savings but no Job? (apartment)

[mysticaltyger]

I recently moved to UT from California with no job.

Even with the market downturn, I have mid 6 figure savings in my retirement plan, including 3 years worth of salary in a stable value fund, (plus money in IRAs which I can't touch for another 7 years without penalty) which I can tap without tax penalty. Plus, I have a year's worth of savings in taxable brokerage, savings bonds, savings accounts, etc.

Are landlords going to have a problem with that?

The other issue landlords won't be familiar with is I have 457 plan, not a 401k. There's no early withdrawal penalty if you take money out of a 457 plan if you separate from your employer. I'm assuming a lot of landlords don't know that, but maybe they wouldn't care either way.

I have no pets. My credit score should be in the high 700s to low 800s. I have no debt other than credit cards that I pay off every month.

I think I'm going to end up looking for a roommate situation because of high rents, but I'm exploring all my options.

[lottamoxie]

Hi mystical!

I was wondering how you were doing. Sounds like you just got there?

When I moved cross-country out of CA, I had no job at the time. I had plenty of savings as well as my investments and a great credit score and clean credit record. Had no problem whatsoever finding an apartment and being approved.

As long as you can demonstrate an ability to easily pay, and with a good background, you should be fine.

How are you liking Utah so far?

[mysticaltyger]

Yes, I just got here 10 days ago after traveling and visiting family and friends for almost 3 months. Lots of bureaucracy in just getting a driver's license. To top it off I have an ear infection and am in between health insurance and the housing market here is bonkers and expensive (which I was aware of). I'm staying with a good friend, so that helps a lot. Moving is a pain and more bureaucratic than it used to be. Or maybe I'm just out of practice. Or maybe a mix of both.

Anyway, thanks for the words of encouragement! I'll keep you posted.

[luv4horses]

I knew a family who sold property and had lots of cash but little income at the time. To rent for a year they just paid the entire year lease up front. I guess if something went wrong later, like a tornado made it uninhabitable, they could have sued to recover the lost months.

[lottamoxie]

Originally Posted by mysticaltyger

Yes, I just got here 10 days ago after traveling and visiting family and friends for almost 3 months. Lots of bureaucracy in just getting a driver's license. To top it off I have an ear infection and am in between health insurance and the housing market here is bonkers and expensive (which I was aware of). I'm staying with a good friend, so that helps a lot. Moving is a pain and more bureaucratic than it used to be. Or maybe I'm just out of practice. Or maybe a mix of both.

Anyway, thanks for the words of encouragement! I'll keep you posted.

3 months of travel and visiting is a nice break after working so many years.

Moving is stressful, no doubt about it, and that's even when everything goes smoothly. I'm sorry you're battling an ear infection. Hang in there with the bureaucracy. One day at a time.

[mysticaltyger]

Originally Posted by luv4horses

I knew a family who sold property and had lots of cash but little income at the time. To rent for a year they just paid the entire year lease up front. I guess if something went wrong later, like a tornado made it uninhabitable, they could have sued to recover the lost months.

I could probably do that, but obviously would rather not.

[pclem]

Originally Posted by mysticaltyger

I recently moved to UT from California with no job.

Even with the market downturn, I have mid 6 figure savings in my retirement plan, including 3 years worth of salary in a stable value fund, (plus money in IRAs which I can't touch for another 7 years without penalty) which I can tap without tax penalty. Plus, I have a year's worth of savings in taxable brokerage, savings bonds, savings accounts, etc.

Are landlords going to have a problem with that?

The other issue landlords won't be familiar with is I have 457 plan, not a 401k. There's no early withdrawal penalty if you take money out of a 457 plan if you separate from your employer. I'm assuming a lot of landlords don't know that, but maybe they wouldn't care either way.

I have no pets. My credit score should be in the high 700s to low 800s. I have no debt other than credit cards that I pay off every month.

I think I'm going to end up looking for a roommate situation because of high rents, but I'm exploring all my options.

I manage an apartment building and screen tenants. I would actually say that savings can be superior to a job, especially at your level. You can lose a job a lot easier than you can lose cash in the bank. If someone had $10k in the bank, no that isn't enough to matter much, but $50-100-200k-plus, absolutely it matters. Assuming the rent isn't crazy high, a landlord who sees the mid 6-figures in cash and high credit and has concerns is just an idiot. A savings cushion is a plus when an applicant has a marginal job income, but if savings are large enough they replace the job requirement altogether.

I think the landlord would need to be made aware of the differences of 457 and 401, the fact that the securities/instruments are liquid, and on your willingness to subsist off those funds. Do you have any income at all (dividends etc)? In this tight market you may have better luck with a small-time landlord who will listen to what you are saying than a corporate landlord who may have fixed non-negotiable criteria.