In some major European cities suffering from housing shortages, a kind of "tenant audition" has become commonplace. In German cities such as Berlin, Munich and Frankfurt, those seeking rental housing must submit a credit report known as "Schufa," along with pay stubs from the past three months or proof of income. With too many applicants, landlords use these documents to narrow down suitable candidates in the first round. If a Schufa record contains past disputes over unpaid rent or damage to rental properties, becoming a selected tenant is difficult. Landlords show the property to those who pass the document screening all at once, then select tenants through on-site interviews.
In French cities including Paris, Lyon, Marseille and Bordeaux, landlords often require a "dossier" — a package of documents comprising three months of pay stubs, income tax returns and proof of employment — even before showing the property. For foreign students, tips circulate like insider advice, suggesting they attach an earnest self-introduction letter in French, in addition to financial statements and guarantor information. In London, the practice of requiring income and credit information along with references from previous landlords has also spread. In Rotterdam, the Netherlands, applicants whose monthly income falls short of three to four times the rent are likely to be eliminated at the document stage.
The reason becoming a tenant is so difficult in these cities is a shortage of housing supply, driven by delays in urban development, rising immigration and population concentration. Strong tenant protection policies have also played a role. In Germany and France, the tenant selection process is demanding, but once a contract is signed, evicting tenants is difficult and rent increases are strictly limited. In Germany, rental contracts are generally "indefinite," and the average tenancy duration reaches 12.8 years. The system imposes heavy losses on landlords if tenants refuse to pay rent and hold out.
In Korea, as the jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) crunch has worsened recently due to regulations on multi-home owners, cases of multiple groups waiting at the same time to view a property or landlords handpicking tenants are on the rise. Tenants with preschool-age children or pets, as well as elderly people and those with disabilities, are reportedly being avoided. Last month, a service called "Safe Monthly Rent," which scores tenants' ability to pay rent, also made its debut. Reining in Seoul housing prices matters, but addressing housing insecurity among vulnerable groups is an urgent task.
