Almost every landlord has encountered at least one rental application that appears promising but lacks a recent rental history. It’s far more common than you think, but that doesn’t mean you should start throwing up red flags immediately.

There could be a dozen different reasons why an applicant doesn’t have a rental history, like:

• Living wth family or friends
• Being brand new to renting
• Being a student renter

While missing renter references can make tenant screening feel a bit murkier, it doesn’t automatically signal trouble. All it means is that you need a more thorough look at the potential tenant’s situation.

We’re unpacking why someone might not have a rental history, alternative methods for assessing their reliability, and how to balance fairness with risk management.

Quick Insights

• A blank rental record isn’t automatically a red flag. Many reliable applicants—like first-time renters, military members, or those living with family—haven’t had the chance to collect references yet.
• Understanding why someone lacks rental history is key. A clear, consistent explanation backed by the right documentation can tell you far more than a missing landlord reference.
• When rental history is absent, income verification, credit checks, ID validation, and background screening carry more weight (and often provide stronger indicators of reliability).
• Supporting documents help fill in the blanks. Utility bills, mortgage records, character references, or consistent bank transfers share insight into how applicants manage recurring responsibilities.
• Conditional approvals create flexibility without lowering standards. Options like larger deposits, guarantors, short-term leases, or required renters’ insurance protect you while still offering a fair path forward for promising applicants.
• A documented, well-written policy for “no rental history” cases helps you apply the same process to every applicant, reducing bias and maintaining compliance with Fair Housing laws.
• With a structured approach and reliable verification tools—like Snappt for income and ID verification—you can confidently approve qualified renters even when their rental history section is blank.

Why an Applicant Might Have No Recent Rental History

There are several reasonable explanations for why an applicant might have little or no rental history. Here are a few of them:

First-time renters might be recent graduates or young professionals in their first roles. They’re financially ready to rent, but haven’t moved into a place of their own yet.

Individuals who lived with family or friends may have lived in family or shared housing for long periods to save money, pay off debt, or manage major life transitions—like a job loss or divorce. In 2023, 19.2% of US adults aged 25 to 34 (roughly 8.5 million people) were living with their parents or parents-in-law.

Former homeowners returning to the rental market might have once owned a home for years and are returning to rent. In these cases, they may have strong financial habits but lack recent landlord references.

Military members or recently relocated individuals move frequently, stay in military base housing or employer-sponsored accommodations, creating rental history gaps.

People who subleased or had informal housing agreements might not have the typical documentation you rely on for rent verification due to a lack of a formal lease agreement.

None of these scenarios automatically suggests risk. But you will need to do your due diligence and track down different information to fairly evaluate the applicant and understand their background.

Step 1: Don’t Assume the Worst—Start with the Basics

When an applicant shows up with no recent rental history, often the alarm bells go off. But this is exactly the moment to slow down and dig deeper for the facts. 

Instead of jumping to conclusions, start by asking the applicant to walk you through their living situation over the past two to three years. Genuine applicants are typically more than happy to explain their situation.

Remember, you’re not looking for a flawless story—you’re looking for one that makes sense and feels honest. As you listen, ask yourself a few questions:

• Does their story stay consistent?
• Are there any unexplained gaps in their story?
• Can they share any supporting evidence, like utility bills, mortgage statements, or other documents that confirm where they lived?

Supporting documentation doesn’t replace a landlord reference, but it can help you confirm the basics.

Your rental verification process should also collect full residential history, even if it includes informal living situations. Review it carefully, looking out for any standout patterns, like  steady employment, predictable income, or long stretches of time spent in one location. 

Keep in mind that this early step isn’t about ruling someone in or out. It means starting from a place of curiosity instead of suspicion. Your manner and approach when listening to the applicant should reflect that.

Step 2: Strengthen Other Parts of the Screening Process

When rental history information isn’t available, the rest of your rental verification process becomes even more crucial. Instead of treating the missing information as a considerable red flag, think of it as a cue to lean on the tools and strategies you already trust. 

A well-rounded evaluation can give you just as much confidence—probably even more—than a landlord reference on its own.

Here are the key areas to focus on:

Income verification: Confirm the applicant has a stable, reliable income and can comfortably cover rent. Pay stubs, employment letters, and third-party income verification tools can all help you validate earnings and detect fake documents.

Identity verification: Make sure the applicant is who they claim to be. Use tools like Snappt that validate IDs and flag suspicious or stolen credentials so you’re protected from tenant fraud before it has the chance to enter your system.

Credit history review: Check for signs of financial responsibility, like timely payments, manageable debt levels, and the absence of derogatory marks on a credit report. Research into rent-reporting programs shows that when on-time rent is added to credit files, around three-quarters of renters see their scores go up, and many thin-file renters suddenly become fully scorable.

Background check: Look for any previous legal issues or eviction filings that might indicate whether an applicant would make a good resident. 

Together, these steps help you build a more complete picture of a tenant—one that goes far beyond rental history alone.

Step 3: Ask for Additional Supporting Documents

When an applicant doesn’t have a rental history, more data points mean more confidence in your choices. Remember, you’re not trying to overwhelm the applicant—you’re simply gathering enough information to make a fair, well-informed decision. 

Most honest tenants understand this, especially when you explain that the extra documentation helps you paint a complete picture. There are several solid alternatives to traditional landlord references, including:

Character references: Letters from employers, professors, supervisors, or community leaders can speak volumes about an applicant’s responsibility, communication, and values. They’re not a substitute for payment history, but they do add valuable context and narrative.

Utility bill history: On-time payments for electricity, internet, or phone service bills can show consistency. It’s a small, simple indicator of how the applicant manages recurring expenses.

Previous mortgage payment records: For former homeowners, mortgage statements share a lot about their long-term financial habits. Regular, timely payments are a strong indicator of stability and responsibility.

Bank statements showing rent-sized transfers: If an applicant lived in an informal rental situation, consistent deposits to a friend, family member, or roommate that match a typical rent amount can help confirm financial habits. 

These documents don’t work in isolation, but together, they can give you a clear idea of how an applicant handles their responsibilities, even without an obvious rental history.

Step 4: Consider Conditional Approval Options

Sometimes an applicant looks great on paper—even without rental history. But you still want that extra bit of reassurance before deciding to approve or reject the applicant. That’s where conditional approvals can help.

Conditional approvals provide you with the flexibility to protect your property while still offering a fair path forward for individuals who may genuinely be new to renting or rebuilding their rental history.

It’s like meeting in the middle: you maintain safeguards, and the applicant has the chance to prove themselves. If they seem promising, consider one of these flexible conditional approval options:

• A larger security deposit can help offset some of the uncertainty that comes with a missing rental history. Just make sure you follow your state’s limits on security deposit amounts.
• A qualified co-signer or guarantor gives you extra confidence and peace of mind that there’s someone who can take responsibility if payments end up falling through.
• A short-term lease trial (3-6 months) before renewal gives both sides a chance to test the fit. Reliable applicants usually welcome the chance to prove consistency.
• Renters insurance with liability coverage adds another layer of protection and can ease any concerns about potential property damage or other issues.

In the right cases, conditional approvals strike the perfect balance: you stay protected, and the applicant has a fair, transparent opportunity to move forward with the rental.

Step 5: Document Your Screening Policies for Consistencies

When an applicant has no rental history, the last thing you want is to make a decision that feels improvised or inconsistent. This is where a solid, written policy makes sense.

By clearly outlining how your team should handle “no rental history” cases, you set a standard everyone can follow. It also shows applicants that your process is transparent, structured, and grounded in fairness rather than gut feelings or personality-based decisions.

Documenting these steps is one of the strongest protections you have against any Fair Housing compliance issues.

Because when you ask every applicant for the same documentation and hold them to the same standards, you avoid unintentional bias and protect your team from accusations of unequal treatment.

Equally important is focusing on objective data, like:

• Verified income
• Credit patterns
• Identity verification
• Any supporting documents you require

Likewise, a clear, documented policy helps your team make confident decisions, provides applicants with a sense of fairness, and keeps your entire tenant screening process running like clockwork.

Common Mistakes to Avoid

Even experienced property managers can slip into poor habits that make screening applicants without rental history harder than it needs to be. 

Here are a few mistakes to avoid:

Automatically rejecting someone without exploring context: A blank rental record doesn’t tell you much on its own. Take your time to understand why it’s empty, and chances are you’ll discover a completely reasonable explanation.

Accepting unverifiable personal references as fact: Friends and family may mean well and speak truthfully, but their word isn’t enough to assess a person’s reliability. In many cases, they’re biased. Don’t rely on personal references without plenty of other information to back them up.

Failing to collect backup documentation for informal housing: If an applicant lived with family or subleased, you still need supporting paperwork. Utility bills, bank transfers, or consistent proof of residence help you confirm the basics.

Making exceptions without documenting why: You can’t just make an exception because you “have a good feeling” about an applicant. This creates inconsistencies that can put you at risk for Fair Housing noncompliance. If you deviate from your written process, you need to explain why.

Looking Beyond the Rental History Gap

When an applicant presents themself with no rental history, it can feel like a challenge. But it’s far from being a dealbreaker. In most cases, it simply means you need to dig a bit more for context before you can make a fair call.

When you lean on other screening areas—like income, credit, and ID verification—and supplement it with the right documentation, you can get a crystal clear picture of someone’s reliability without a landlord reference. 

And a clear, consistent process, transparent criteria, and a willingness to look beyond the traditional screening trail help you confidently approve low-risk applicants while safeguarding your property and team.

If you want more confident screening—even when rental history is missing—Snappt can help. Our platform verifies income, validates IDs, and flags document fraud so you can approve qualified renters with less risk and more certainty.