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Hi,
My husband and I are currently in our 4th year of renting a home (with good references from this private landlord) and after my husband was laid off a few weeks ago, we have decided to move to another state with a better job market. His credit is poor, but he's the breadwinner. I actually pay the bills and write out the rent check on time EVERY MONTH, and my credit is good. A realtor denied us a potential rental based on husband's credit (he's not good at paying his credit cards on time). By paying our rent on time, we did nothing to help our credit history - rental history, which was top on our priority list, doesn't show up at credit bureaus.
Upon termination from the employer, my husband has cashed out his 401k ($20,000) which we'll likely roll over what's left from relocating into an IRA to cushion the blow of taxes & penalties. I'd like to go through another private landlord and offer to pay the whole year up front to compensate for any fears that we won't pay. However, a search of the internet reveals a perceived fear that by doing that, we're 1) going to trash the place, 2) drug dealers or 3) god knows what.
I feel like we're damned if we do, and damned if we don't. What do we do?!? Any advice is greatly appreciated.
I would not pay a whole year up front. Most what months, last & security deposit. So thats 3 months. Once you move in & find you like it you could pay 2 months at a time.
But if I was you I would put it into a savings account collect interest.
Many rental agreements do not allow prepay rent as the service has not been rendered. You might look a little shady if you offer this as proof of your ability to pay. Just tell them your story, get a letter that you can hand carry or fax to the prospective property that tell of your timely rent payment. I for one look at that over credit problems. You can ask if they would take a larger % of deposit as security. Don't dwell on the husband issue, but do remind that you are a long time renter and you are interested in not moving around alot. Good Luck.
I would definitely only look into private rentals - rentals that do not go thru a management or real estate company. The landlord may check your credit, but by offering an addl mo deposit, they may work with you - this way they are covered for 3 months in case you default. Most people do not want a whole year in advance - plus that is really not a good financial decision. What if you have very serious issues with the property or landlord during that year? You will have to fight to get your money back.
I imagine that most private landlords take many things into acct when renting - not just credit history. If you show up to view the home in raggedy clothes and are unpleasant your chances are slim. I always look at renting a home like a job interview - dress decent, have good manners and interject things in conversation that might help.. IE... I like to work in the yard +++ (now the landlord assumes you take pride in the yard) and I have no problems fixing minor things around the house+++ ( means I wont nag the landlord to fix a drippy faucet). Don't lie, just think about those things that would help make your case.
What would I do? I'd concentrate on fixing your husband's bad credit. If he's bad at making payments on time, set up automatic payments, or you take over paying the bills. Then take the other suggestions previously posted in regard to your rental.
Yes, fixing the credit is a priority, but it won't help us right now. Thanks for the input, I am thinking maybe paying it all upfront is not the good idea I thought it would be. I think we'll just have to rely on a good written reference and a non-commercial landlord. Thank you all for your comments!
Yes, fixing the credit is a priority, but it won't help us right now. Thanks for the input, I am thinking maybe paying it all upfront is not the good idea I thought it would be. I think we'll just have to rely on a good written reference and a non-commercial landlord. Thank you all for your comments!
Yes, and be honest but as I suggest that just give them the basic information, "you may see some late payments but I am taking steps to keep my hubby on task, and by the way I am the one who always makes the rent payment and here is a reference from my current landlord stating such", nothing worse for a landlord than getting a great feel for the applicant and then getting a lousy credit report without any prior warning, good luck, I am sure you will be successfull.
The responders in this thread all have good advise. I find that most landlords don't check or report credit ratings on tenants. If no problems with the courts, good tenants are invisible. I wouldn't recommend pre-pay much rent. You may need to move, and getting your money back is difficult. You could put it in escrow through a lawyer or accountant. Any pre-pay should entitle you to 4% to 8% discount, but best to avoid more than first/last rent & deposit.
I am a landlord and know quite a few other landlords....we all do credit reports.Although I must agree...private owners are not as strict with credit
requirements.Where are you relocating to? Perhaps I can help. PM me if you'd like.I have rentals in several states, and I may know others who could also help.
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Any advice is greatly appreciated.
