Apartment Lease Application after 2 years into C13 payment plan

[dramos23]

Does anyone know what are the chances of getting approved for an apartment at a complex that is managed under a large rental mngt corporation. When I called them they said the application is not even approved by a person. It's submitted through their system and it (System) either approves it or denies it or approves with conditions. They require that you make 3 times the rent price per month. I make 4.5 times. You also must have a solid work history which in my case I do pretty well cause I've been at my current job over 10 years. But the third requirement that I'm not too sure about is my credit report due to my chapter 13 bankruptcy which was filed in March of 2019. I do not have any other negative items on my credit reports. Fico is 620, trans union is 689 and equifax is 710. And of course I have $0 debt. Please advise. Thank you so much.

[shipo]

A few comments:

• Ignore the TransUnion and Equifax credit scores, they are Vantage 3.0 scores and as far as I know, they are effectively unused by creditors.
• The FICO score you list above is most likely the Experian Mortgage 8 number which may or may not be used by the service the apartment complex uses. FWIW, between the three credit bureaus, there are a total of 28 separate and distinct FICO scores, so the one you're seeing is just one of many.
• I have heard anecdotally if you are in a Chapter 13, some management companies will allow you to put down two, or even three security deposits to get around a denial due to credit issues. If I was looking for a new place to live during my Chapter 13 (I was fortunate enough to live in the same place for the full 5-year stretch), I would get in front of it before submitting the application, disclose the bankruptcy, and offer to pay an extra security deposit or two.

[justbroke]

I have had absolutely 0 issues obtaining an apartment lease, from major national apartment management companies, while in an active Chapter 13. Even approved all 3 times with no deposit. From my personal experience, the FICO score will matter the most. If you are at least 2 years from filing the Chapter 13, I don't see being denied if the FICO score is over 620.

[dramos23]

This forum is a great source of information and bankruptcy education. Thank you shipo and justbroke for sharing your knowledge and expertise. I really appreciate it. When you apply and get turned down, you feel frustrated. I will go ahead and apply and cross my fingers but with all the information I have, now I feel more prepared for any answer, whether it is a yes, a no, or a double or triple down payment.

[justbroke]

I was shocked each time I applied and was approved. In fact, I recently just signed as a guarantor for my brother's lease at an expensive (new) townhomes complex. I wasn't shocked that they approved me, just shocked that they wanted 5X for the guarantor!

[underh20]

A positive history of timely rental payment plus having a good relationship with your previous landlord(s) may also have an impact when applying for a new lease. Just curious, does new management company verify prior landlord references?

[justbroke]

Not one of mine verified landlord references. Large national management companies use things like MyRental and CoreLogic (and sometimes Equifax Rentals) to screen people. Unless it's a borderline approval, I don't see a need to talk to prior landlords when you're dealing with large apartment complexes. When dealing with an individual landlord such as myself, that landlord may want to get a reference from the other landlord. In my personal experience, I used MyRental and CoreLogic and exclusively went by their recommendation. Anyone who scored lower than a B would have likely had their rental references validated.

The fact is that most management companies report rental history into Equifax or CoreLogic (or even LexisNexis Screening Solutions). That way the history is treated much like credit reporting and can be accessed by any future creditor.

Bottom line: if you have a good score (significantly over 620), and with a positive risk score from MyRental, CoreLogic, or LexisNexis, I don't see a management company doing any other due diligence in checking references. That has been my personal experience in the last 3 years.