Many people are contemplating whether to pay just one month's deposit or a bit more. This choice can significantly affect approval, especially if your credit score is uncertain. When looking for rentals in Sacramento, this is a key point to consider first. If you are moving from another California city, you might think that negotiating the deposit based on previous standards is possible, but the situation has changed a bit.

California will implement AB 12 starting July 2024, which generally limits deposits to one month's rent. There is an exception for small landlords with two or fewer rental properties and four or fewer units, who can charge up to two months' rent (according to caanet.org). In the past, it was common to increase the deposit to two or three times the amount to get approved, even with a low credit score, but this method has become difficult with larger management companies. Sacramento has a high proportion of large management company complexes, especially since many work in government-related jobs, so you may feel this change more acutely.

Looking at the score requirements, the minimum credit score generally required by management companies in the U.S. rental market is between 620 and 650 (according to experian.com and rent.com credit score guide). The average rent for a one-bedroom in Sacramento is projected to be around $1,480 per month by 2026 (according to Zumper), which is relatively low compared to other major cities in California. With lower rent, the income requirement is also relatively manageable at about $4,440 per month before taxes. However, just because the rent is low does not mean the credit score requirements are lower. Areas close to the state government buildings, like downtown and midtown, tend to have higher average rents, so it's important to check by region.

With options for increasing deposits limited, alternatives for those with insufficient scores narrow down to co-signers and rent guarantee insurance. A co-signer does not incur costs but requires someone to ask for help. Rent guarantee insurance can be obtained through companies like The Guarantors or Insurent, costing between 4.5% and 10% of the annual rent. If finding a co-signer is difficult, opting for the insurance may be a more realistic choice.

If you are receiving government rent assistance, be sure to check SB 267, which was enacted in 2024. The law guarantees your right to present alternative documentation, such as proof of income or bank statements, instead of a credit history (according to leginfo.legislature.ca.gov). For international students or recent immigrants with short credit histories, services like Nova Credit that convert international credit histories may also be an option.

If you are considering school districts for your children, the Folsom-Cordova school district or areas near El Dorado Hills are well-regarded among Korean families. However, school district boundaries can change frequently, so be sure to verify the assigned school for the address with the school district's resources before signing a lease. If you are moving to Sacramento from another state, it may also be helpful to consider different property tax and insurance systems when thinking about future purchases, and gathering information from the rental contract stage can be beneficial.

The era of gaining approval through deposits is coming to an end. Preparing your credit score, co-signer, and guarantee insurance in advance will be a more stable choice in the Sacramento rental market. To improve your score, starting with managing late payments and credit utilization is the most effective approach. This article is not investment or legal advice, and actual contract terms may vary by landlord and management company, so consulting with a professional before signing is recommended.