How Hard Is It to Get a Rental WIth BK on Credit?

[CatsInTrouble]

Any stories?

Thing is, we have kids so we need three bedrooms, and it seems all the three bedrooms are "luxe" communities..... wouldn't those luxe communities have higher credit reqs? Ugh.

[cupcake]

Yes, in my own recent experience, the nicer the apartment community is, the stricter the credit requirements are.

I signed a new apartment lease a couple months ago and moved last week. I moved into an apartment that would probably be considered somewhat "luxe" for my area. While I was searching, I found that some communities wouldn't even consider me with a BK filing on my credit report. Most required that you be two to three years post discharge to be considered, which was the case for the apartment I ultimately ended up renting. The only way I was able to enter into a lease was with a co-applicant. Thankfully, I have a very nice boss who knew of my situation and was happy to help me out. When I signed the lease I hadn't even been discharged yet. With any luck, if I resign with them next year, I will not need a co-applicant.

Keep in mind that many people who cannot sell their homes in this economy are trying to rent them out. Most likely, those people aren't running a detailed credit check on you and might never know about your BK. That would be an easier way for you to rent something larger. Just an idea...

[DebtDiva]

Renter

This is something I worry about. I might be wanting to move in a couple of years, and have not yet filed for BK. I guess I'll worry about it when/if the time comes. I've heard in some instances they make you pay a higher security deposit.

[teacher]

Also, some places have so many vacant units that if you can provide income verification and don't have a criminal background...that kind of thing, then you can get approved.

There are too many rentals in every city to both being stressed about it, you'll find something.

[OhioFiler]

Also, some places have so many vacant units that if you can provide income verification and don't have a criminal background...that kind of thing, then you can get approved.

There are too many rentals in every city to both being stressed about it, you'll find something.

Exactly correct! If I were in need of a rental property now I'd take the position that the landlord needs me more than I need his place and negotiate a lease to my advantage.

[frogger]

Exactly correct! If I were in need of a rental property now I'd take the position that the landlord needs me more than I need his place and negotiate a lease to my advantage.

Tons of vacant rental properties out there and in our area, rental rates have been dropping like a rock. I don't foresee any problems.

[indigoblue]

My husband and I just rented a home 6 months old because the owner hasn't been able to sell it. They're out there, you just have to keep looking. Good luck!

[HakunaMatata]

I agree with everyone (I can also relate to your fears). I own a money pit and I'm considering foreclosure. Rental properties in my area don't appear to have dramatically reduced (admittedly, as a home owner, I haven't spent much time assessing rates throughout the years); although, properties are plentiful! Applying the basic supply and demand principle leads me to believe securing rental property is becoming increasingly easier. I think it's advantageous to put yourself in the shoes of a landlord or a potential landlord (ex/ an individual who has an upside-down mortgage and is relocating). Vacant property and no income? Rented property and income? We all know the latter is the goal for property owners. I have friends in real estate who have negotiated numerous rental agreements...saving potential sellers from large losses on upside-down mortgages.

Like you, my sister had similar concerns about securing housing for her family (two young children) when her husband lost his job. Foreclosure and bankruptcy were their only options as they needed to relocate quickly in order for her husband to be closer to a broader range of employment options. Through an ad on craigslist, my sister found a beautiful house in an ideal location. She discovered the owners had purchased a new primary property before the mortgage crisis and they were struggling with managing two mortgages. As new landlords (who would have preferred to sell, yet couldn't due to declining property values), they retained an attorney to assist with the lease. My sister was so fearful she wouldn't be considered as a leasee due to her credit crash. She agonized over the situation and decided her only option was to be forthcoming and candid. She explained her situation in detail to the potential first-time landlord. She also disclosed that her husband (the sole breadwinner) had not secured employment. Years ago, the end of this story would have likely been...no money, no job, no deal. Thankfully, this story has a happy ending. My sister offered to prepay six months in rent (money had been saved during her foreclosure) and the property owner consented. Credit worthiness and current unemployment status were never issues. My sister signed a one year lease. Following this period, she has the option to buy. This has been a win-win for all.

Don't forget...you have options! There are plenty of people in your situation (I suspect I'll be joining the ranks soon!). Wishing you great success!

[OhioFiler]

I agree with everyone (I can also relate to your fears). I own a money pit and I'm considering foreclosure. Rental properties in my area don't appear to have dramatically reduced (admittedly, as a home owner, I haven't spent much time assessing rates throughout the years); although, properties are plentiful! Applying the basic supply and demand principle leads me to believe securing rental property is becoming increasingly easier. I think it's advantageous to put yourself in the shoes of a landlord or a potential landlord (ex/ an individual who has an upside-down mortgage and is relocating). Vacant property and no income? Rented property and income? We all know the latter is the goal for property owners. I have friends in real estate who have negotiated numerous rental agreements...saving potential sellers from large losses on upside-down mortgages.

Like you, my sister had similar concerns about securing housing for her family (two young children) when her husband lost his job. Foreclosure and bankruptcy were their only options as they needed to relocate quickly in order for her husband to be closer to a broader range of employment options. Through an ad on craigslist, my sister found a beautiful house in an ideal location. She discovered the owners had purchased a new primary property before the mortgage crisis and they were struggling with managing two mortgages. As new landlords (who would have preferred to sell, yet couldn't due to declining property values), they retained an attorney to assist with the lease. My sister was so fearful she wouldn't be considered as a leasee due to her credit crash. She agonized over the situation and decided her only option was to be forthcoming and candid. She explained her situation in detail to the potential first-time landlord. She also disclosed that her husband (the sole breadwinner) had not secured employment. Years ago, the end of this story would have likely been...no money, no job, no deal. Thankfully, this story has a happy ending. My sister offered to prepay six months in rent (money had been saved during her foreclosure) and the property owner consented. Credit worthiness and current unemployment status were never issues. My sister signed a one year lease. Following this period, she has the option to buy. This has been a win-win for all.

Don't forget...you have options! There are plenty of people in your situation (I suspect I'll be joining the ranks soon!). Wishing you great success!

Just be careful prepaying a lease because if the owner is in default you may be SOL and evicted without much recourse.

[jribe]

i haven't filed yet; but haven't made credit payments in about 6 months; so my credit is shot. I was transfering jobs (same company) and needed to find a nice rental.

I will admit it took about a month (but i am picky) to find a nice 3 bd/2 1/2 bath that would work with the bad credit.

Luckily i was able to find a property being managed by the owner (not a prop mgmt company) and was upfront that my credit was poor because of my husband's job loss (he was still unemployed) but i had been with my employer for 4 years and had steady income. We'd never had any late payments on rentals and i said i would pay 2 months in advance (not extra security deposit). They agreed, and everything worked out!

The only thing i found really difficult was trying to find a decent place that wasn't being offered through a property management company. Those will decline you for sure in our area (northern CA). I went through craigslist to find our current place. I usually sent an e-mail asking if it was owner managed or not, and if credit would be an issue if you hade the right pay.

Anyway- good luck!

[lolasaurus]

Personally I'm going to save what I was going to put into the house payment and just pay 6 months in advance if I have to.