Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We are moving to a new city, and have good job history and income. We unfortunately had to declare ch 13 bankruptcy due to a horrible Florida real estate investment. I'm sure some of you will think we are deadbeats, but we did what we had to do. Unfortunately for us, we are moving to a new state, and after "owning" our house for the last ten years, have no rental references and poor credit. The places we want to move require "good credit" at least according to their Craigslist ads.
My question:
In lieu of good credit, but having excellent income and savings in the bank, what is our best strategy for securing a rental? We would pay the entire year in advance, but the state we are moving to (connecticut) only allows first and last months by law. We would put an entire year's rent in escrow if that would help. I don't know what else to say/offer. We could possibly offer to pay more than the advertised rent, but I don't know if that would help.
It would not be a concern at all if not for our two dogs. Because of them we are more limited to where we would live. We will NOT get rid of them, it is NOT negotiable. We are ideal tenants, very stable and secure and conscientious, but how to prove that is the problem.
We are responsible ppl who fell into a bad real estate market. Any advice for assuaging the (legitimate) fears of landlords would be most appreciated.
Be upfront about the credit history - don't just wait for them to find it on credit check. When inquiring about a rental, explain you history, and ask what you can do to make them feel better. Offer to show proof of assets and proof of employment/income. Personal references form former employers, and possibly neighbors. Promise to pay rent with cashiers check or money order for the first 6-12 months, until they feel comfortable with the fact that you are going to pay rent every month.
Most landlords will take into consideration why your credit is poor. The worst thing you could have is rental collections or an eviction. If you don't have either of those, then at least that's good. I also try to avoid applying anywhere that has rental fees unless you know for sure you're going to accepted. Those application fees add up fast - especially when there's more than 1 person who will be on the lease.
I've had the most success by applying with a cosigner. Most landlords around here don't give a hoot about you as long as your cosigner qualifies (home owner, income is 3-5x the rental rate, long-term employment, etc...). But, most people also don't have someone willing to cosign for them since if you fail to pay your rent, your cosigner would be responsible for the money.
Another option would be to find a private landlord (ie individual) who would be willing to work with you even though you have poor credit. Just be aware that sometimes these places aren't in desirable locations so check that our first.
@mpheels - YES. I am very honest and upfront about our credit history - i do not wish to waste anyone's time it their rules are so rigid - I see no good that can come from obscuring the truth.
@azurabug - the idea of a private land lord is good. We would ideally like to secure housing before we move up there, otherwise we must live in a hotel. The downside is independent landlords are harder to find/deal with long distance.
What I am looking for is some financial/legal means to allay the situation. Unfortunately, my skill lies in business, not finance. I can take 1k and turn it into 3K with no problem, but then I don't know what to do with it except turn it into more money. Renting an apartment is proving to be quite the challenge.
Pay some of the rent upfront; that's the simplest solution. Offer to provide anywhere from 3-6 months pre-paid rent upfront; that's generally going to make landlords feel easier about your poor credit.
You can't really offer extra security, as some states have limits on how much a LL can ask for a security deposit.
All the clients I've successfully found a rental for, that had poor credit, had to pre-pay some portion of the yearly rent upfront, and it always worked out well.
I wouldn't have had a problem with a Chapter 13, as long as there is no new credit that's questionable since you filed, and you're making payments. Especially with good employment history and good current income.
In general a bankruptcy isn't the same as "bad credit" anymore. It shows you're dealing with it and if you're making the payments, this is preferable to someone with bad credit who hasn't done anything about it.
With the bankruptcy already on the books, too, I know you can't file bankruptcy on me. So, I'd prefer a fresh bankruptcy any day, to someone with bad credit who has yet to file.
I wouldn't have had a problem with a Chapter 13, as long as there is no new credit that's questionable since you filed, and you're making payments. Especially with good employment history and good current income.
In general a bankruptcy isn't the same as "bad credit" anymore. It shows you're dealing with it and if you're making the payments, this is preferable to someone with bad credit who hasn't done anything about it.
With the bankruptcy already on the books, too, I know you can't file bankruptcy on me. So, I'd prefer a fresh bankruptcy any day, to someone with bad credit who has yet to file.
Good points. I think, however, that a Chapter 7 bankruptcy would still be considered "bad credit" by a LL, as opposed to Chapter 13. With such increased demand for rentals in many parts of the country, anyone with any blemishes on their record really needs to "sweeten the pot", so to speak, in order to have the LL consider them over other applicants who don't have any issues.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
