If, for some reason, you had some credit issues in the past, perhaps you had some financial issues, you might be concerned about coming to a point in your life where you need to rent a house or an apartment. Indeed, bad credit does not help if one is looking for housing, but this does not imply that one has to accept poor quality or unsuitable tenancy. There is always a place out there that offers a comfortable solution, within your price range, provided that you take the time to do some research and seek some accommodations, if necessary. Below is a step-by-step guide on how to go about it in the most efficient way possible if one wishes to rent a house with bad credit.
The Challenges
TENANT SCREENING: Many landlords and property managers investigate the credit history and credit scores of prospective tenants to attempt to identify if they have the potential to be a credit risk. Charges on your credit, collection of credit by the credit company, adjudications, foreclosures, creditor judgments, and bankruptcies all lower your credit score and profile. Having bad credit and past credit issues may lead a landlord to disapprove the rental application because the landlord will opt to rent the premises to an applicant with good credit status. Other factors that relate to bad credit include low income or even the instability that comes with certain types of employment makes it difficult to qualify.
Be Upfront With Landlords
Honesty should be observed at all times especially when dealing with landlords since it is difficult to tell what they will do depending on the information that they are given. A landlord would rather prefer to know about your credit situation than to have it negatively revealed to him/her. Present all current forms of income to show the capability of paying for rent, present proof of any income or any form of asset, and explain if there have been any previous credit problems. The best way to deal with some of the problems that come with bad credit is to offer as much clarity and documentation as possible to the landlord in the belief that he will understand and accept anyone who is trying to improve their status.
Look for Flexibility
Try to find affordable and liberal landlords who will look at the overall picture and current circumstances, instead of rejecting an applicant flat out due to poor credit history. This is because landlords who manage large compounds have certain standards that they have to meet when giving out credit and background checks while other landlords who manage single or a few houses have the freedom to choose who to give the house to. Be particularly keen on those landlords who are flexible enough to agree to allow tenants to provide guarantors or co-signers for their leases in a bid to reduce their risk too.
Offer to Prepay Rent
The ability to pre-pay several months or more of rent can be used to persuade a non-approving landlord to accept an application. Prepaid rent decreases the likelihood that a landlord would suffer a loss due to defaulted rent payments during the occupancy of the tenant. To prove your competency and bona fide desire to deliver, make that symbolic gesture. But, it is also important to understand that you should also make timely payment of the regular rent as and when due since a tenant can still be evicted even when he/she has paid advance rent.
Consider Roommates
If you are facing affordability issues because of the credit situation, then the chances are that if you find a roommate, you can apply as a group and bypass all the hurdles. Most landlords base their renting decisions on the total income generated by the tenant including the roommate, hence having a roommate with proper credit scores and sound finances may cover for your messy past. It can also assist you in coming up with more cash to get a better house and ultimately pay a smaller share of the rent.
Offer a Larger Deposit
Likewise, the same may apply to a motivating factor such as offering the landlord a higher security deposit usually up to 2x or more than the normal amount. You are in effect paying the landlord’s potential losses because if you fail to pay rent or destroy the property, the landlord has that large deposit to help make up for his losses. Expect that this higher deposit is going to allow you to demonstrate to the landlord that you are going to be a good tenant and that at the end of the lease term, some of it may be reclaimable depending on the performance of lease agreement terms.
In Summary
Securing an apartment or house with a bad credit score involves being prepared, active, innovative, and flexible in the way you search and bargain. Having perseverance and a practical strategy in addition to realistic goals, it is possible to achieve a positive outcome when leasing a home in the future even with credit issues. When contacting potential landlords, one should not be close-minded, but friendly, professional, and patient. To prove that you are reliable in paying the rent within the agreed time, provide recent pay stubs, tax returns, and bank statements. And to calm their fears, a tenant can bring some form of guarantee such as a bigger security deposit, advanced rent, or a co-signer. By doing this, it will be easier to secure a unit that will give you a stable place to live whilst addressing your credit issues.
The only requirement is to be as truthful, accountable, and willing to let a landlord safeguard himself as best as possible until a person proves himself right. Do not get discouraged if a certain potential home says no to adopting a child and be ready to go to the next. But more importantly, armed with resolve and new opportunities and choices, the prospects of reversing bad credit and finding a fitting one for a good rental are quite favorable.
